Scott Sheffield, the founder and former CEO of Pioneer Natural Resources, allegedly attempted to collude with OPEC and its allies to manipulate oil prices, according to federal regulators.

The Federal Trade Commission (FTC) claimed that Sheffield exchanged numerous text messages with OPEC officials, discussing pricing, production, and oil market dynamics.

These communications aimed to coordinate oil production in the Permian Basin with OPEC and OPEC+ countries, in violation of the free market principles governing US oil production.

Sheffield retired from Pioneer in December 2023, but the FTC’s approval of Pioneer’s sale to ExxonMobil for $60 billion included provisions preventing Sheffield from involvement with Exxon, CNN reported.

The FTC accused Sheffield of engaging in anticompetitive practices and potentially criminal behavior, noting his efforts to align US production with OPEC’s objectives.

While Sheffield made public statements urging discipline in production, he also allegedly held private conversations with OPEC representatives to keep oil output artificially low.

Written by B.C. Begley