Scott Sheffield, the founder of Pioneer Natural Resources, has accused ExxonMobil and regulatory bodies of orchestrating a "smear campaign" to prevent him from securing a board seat at Exxon. This accusation comes in the wake of Exxon's $64.5 billion acquisition of Pioneer. Sheffield alleges that the oil major and regulators colluded to generate allegations of his involvement in OPEC output collusion.
The controversy stems from the Federal Trade Commission's (FTC) consent order regarding Exxon's acquisition of Pioneer. The FTC's order specifically bars Sheffield from joining Exxon's board or serving in any advisory capacity. The FTC alleged that Sheffield had, through various communications including public statements, text messages, and WhatsApp conversations, attempted to collude with OPEC and OPEC+ representatives to reduce oil output, which would lead to higher prices for American consumers.
The FTC's complaint detailed Sheffield's efforts to coordinate oil production across the Permian Basin with OPEC+, citing his statements like, "If Texas leads the way, maybe we can get OPEC to cut production. Maybe Saudi and Russia will follow. That was our plan." The FTC argued that Sheffield's past conduct made him unsuitable for Exxon's boardroom due to the risk of continued collusive activity. Furthermore, the FTC cited a potential board interlock as Sheffield serves on the board of The Williams Companies, Inc., which has overlapping operations with Exxon.
Sheffield has denied the FTC's allegations, claiming the agency mischaracterized facts and wrongly vilified him. He filed a petition with the FTC seeking to vacate the consent order, asserting that the public interest required setting aside the order. However, the FTC denied his petition, stating that as he was not a party to the original order, he was not eligible to petition to reopen it.
