The Federal Trade Commission (FTC) has accused Scott Sheffield, the founder and former CEO of Pioneer, of collusion with OPEC and OPEC+ to reduce oil production through public statements and private communications. This alleged coordination could have resulted in higher prices for American consumers and increased profits for companies. Pioneer denies the accusations but will not stop the merger due to Sheffield’s veto.
Pioneer was acquired by Exxon for around $60 billion last October, with regulatory approval required. One of the conditions set by the FTC for closing the deal is the prohibition of Sheffield from engaging in collusive activities that could raise oil prices. The FTC accuses Sheffield of violating antitrust laws by attempting to align oil production in the Permian Basin with OPEC+ through various communication channels.
Despite Pioneer’s disagreement with the accusations, they will not prevent the merger from going through. The company believes the allegations are a misunderstanding of the US and global oil markets and that Sheffield’s actions were intended to raise awareness of issues facing the energy industry during the pandemic.
Exxon will become the largest producer in the Permian Basin after acquiring Pioneer, providing access to prime drilling locations for decades to come. However, Sheffield will not be able to join Exxon’s board or provide advisory services once