In October 2020, Exxon agreed to purchase Pioneer for $60 billion. However, the Federal Trade Commission (FTC) imposed a condition on the deal that prohibited Scott Sheffield, the founder and former CEO of Pioneer, from engaging in collusive activities that could raise oil prices. The FTC accused Sheffield of 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 that Sheffield’s actions were intended to raise awareness of issues facing the energy industry during the pandemic and were not an attempt at collusion.
Pioneer was founded by Sheffield in 1997 and has been a key player in the shale oil boom in the US. The company’s acquisition of other firms has bolstered its position in the industry, making it one of the largest oil producers in Texas. The operation with Exxon will make Exxon the largest producer in the Permian Basin and provide access to prime drilling locations for decades to come.
In conclusion, Scott Sheffield will be prohibited from joining Exxon’s board for five years due to concerns about anticompetitive behavior following allegations of collusion by him with OPEC and OPEC+ to reduce oil production through public statements and private communications. Despite his denials, he will not be able to join Exxon’s board or provide advisory services once
