The Federal Trade Commission last week gave the green light to Exxon’s acquisition of Pioneer Natural Resources. There was one condition attached to the approval of the $60-billion deal that Scott Sheffield, the former CEO of Pioneer, does not join the combined company’s board. The FTC alleged that Sheffield had colluded with OPEC and OPEC members to limit production and increase oil prices.
The actions in question were conversations with OPEC and OPEC officials in 2020, when pandemic lockdowns decimated global oil demand, pushing U.S. oil prices briefly below zero. At the time, Sheffield was an advocate of production cuts in the shale patch as well, in a bid to minimize the damage that the demand drop was already causing the industry, Pioneer also said. It didn’t make any difference, however. The FTC had already made up its mind and acted on it.