Scott Sheffield, founder of Pioneer Natural Resources, has accused ExxonMobil and regulators of orchestrating a "smear campaign" against him. This follows the Federal Trade Commission's (FTC) decision to block him from taking a seat on Exxon's board after its $64.5 billion acquisition of Pioneer. Sheffield claims ExxonMobil "threw me under the bus" by not defending him against allegations of colluding with OPEC+ to raise oil prices.
The FTC's consent order, which allowed the Exxon-Pioneer deal to proceed, explicitly prohibits Sheffield from joining Exxon's board or serving in any advisory capacity. The agency alleged that Sheffield, through public statements and private communications, attempted to coordinate with OPEC and OPEC+ to reduce oil and gas output, thereby inflating prices for consumers. This move was intended to prevent him from engaging in future collusive activities that could lead to higher crude oil prices and increased costs for American consumers.
The allegations against Sheffield, widely regarded as a significant figure in U.S. shale, centered on his influence to align oil production in the Permian Basin with OPEC+. The FTC stated that his past conduct made it clear he should not be on Exxon's board. The consent order also bars Exxon from appointing any other Pioneer employee or director, with specific exceptions, to its board for five years and includes reporting obligations under the Clayton Act for ten years. Exxon, for its part, stated that the FTC's allegations were "entirely inconsistent with how we do business" and agreed to the terms of the consent decree, closing the acquisition.
Sheffield's ambition was to cap his career by selling Pioneer to Exxon and joining its board. However, the FTC's intervention has prevented this, despite the agency not challenging the overall $64.5 billion merger, which will make Exxon the dominant oil and gas producer in the Permian Basin. Sheffield denies the collusion accusations, framing them as a political attack orchestrated by regulators and Exxon.
