Markey plans hearing on Exxon's XTO purchase

Rep. Ed Markey (D-Mass.) said Tuesday that he will convene hearings on Exxon Mobil Corp.'s planned $41 billion acquisition of XTO Energy Inc., a large natural gas producer.

XTO specializes in producing gas from shale plays and other unconventional formations. Exxon hopes to complete the deal in the second quarter of next year. It is a $31 billion stock transaction in which Exxon will also assume $10 billion in XTO debt.

Exxon's purchase comes as Democrats have increasingly warmed to natural gas as part of an energy portfolio that can help reduce U.S. greenhouse gas emissions. Markey chairs the energy subcommittee of the Energy and Commerce Committee. Here's Markey's statement on the planned deal:

This transaction shows that natural gas -- with its comparatively lower carbon content -- is a bridge fuel to America’s low-carbon future, since it will play an increasing role in the coming years.

However, this proposed merger also raises a number of issues with respect to the future direction of the U.S. domestic oil and gas industry, competition within the industry, and the potential environmental impact of increased unconventional natural gas development. I intend to convene hearings in the Subcommittee early next year so that our Members can take a closer look at this proposed transaction.