New York – Federal regulators alleged that Scott Sheffield, founder and former CEO of Pioneer Natural Resources, engaged in collusion with OPEC and its allies to manipulate oil prices. The Federal Trade Commission accused Sheffield of exchanging messages with OPEC officials to coordinate oil production in the Permian Basin in Texas with the oil cartel. This move was seen as an attempt to inflate prices and benefit oil companies at the expense of US consumers and businesses.

Sheffield, who retired as CEO in December 2023, built Pioneer into the largest producer in the Permian Basin, a key region that contributed to the US becoming the leading oil and gas producer globally. The FTC approved the sale of Pioneer to ExxonMobil for $60 billion but imposed a condition preventing Sheffield from joining Exxon’s board or serving as an adviser, citing concerns over his past conduct.

The FTC highlighted Sheffield’s efforts to organize output reductions among US oil producers and OPEC, utilizing tactics similar to those of OPEC+ to influence oil production. Regulators also mentioned Sheffield’s lobbying of the Railroad Commission of Texas to restrict Permian oil production at the beginning of the COVID-19 pandemic, which was seen as an attempt to boost crude oil prices.

Despite Pioneer’s defense of Sheffield, stating that his actions were not intended to violate competition laws, the company indicated that they would not contest the FTC’s findings. Exxon, upon learning about the allegations, asserted that the accusations were inconsistent with their business practices and confirmed that Sheffield would not be added to their board.

Exxon reassured that they had cooperated with the FTC’s requests and expected the acquisition of Pioneer to proceed as planned. The company emphasized their commitment to conducting business ethically and expressed confidence in the deal’s completion. The story continues to develop, with additional information being updated as the investigation progresses.