Scott Sheffield, CEO of Pioneer Natural Resources.
Adam Jeffery | CNBC
The Federal Trade Commission on Thursday accused the former Pioneer Natural Resources CEO of colluding with OPEC to raise prices, and barred him from serving on the Exxon Mobil board of directors once its planned $65 billion acquisition of Pioneer closes.
The FTC filed a complaint alleging that Scott Sheffield attempted to collude with representatives of OPEC to reduce oil and gas output in an attempt to increase prices at the pump and inflate Pioneer’s profits.
The federal regulator has decided to refer the allegations to the Justice Department for a potential criminal investigation, people familiar with the matter told The Wall Street Journal.
The FTC alleged that Sheffield repeatedly held private conversations with high-ranking OPEC representatives to assure them that Pioneer and its competitors in the Permian Basin were working to keep oil output artificially low.
“This was not a one-off event but rather part of Mr. Sheffield’s sustained and longrunning strategy to coordinate output reductions,” FTC Chair Lisa Khan and the other commissioners allege in the complaint.
Pioneer said in a statement Thursday pushed back against the allegations, saying the FTC’s complain reflects “a fundamental misunderstanding of the U.S. and global oil markets.” Sheffield never intended to circumvent the laws and principles that project market competition, according to Pioneer.
“Notwithstanding, Pioneer and Mr. Sheffield are not taking any steps to prevent the merger from closing,” the company said in its statement.
This is a developing story. Please check back for updates.
