Amidst allegations of colluding with OPEC to manipulate fuel prices, former CEO Scott Sheffield of Pioneer Natural Resources fires back at the Federal Trade Commission (FTC), accusing them of unjustly smearing his reputation and denying him due process. This high-stakes battle in the energy sector raises questions about regulatory oversight and the influence of oil production on global markets.
The former CEO of a major U.S. oil company, Scott Sheffield, vehemently refuted allegations from the Federal Trade Commission (FTC) accusing him of colluding with OPEC to manipulate fuel prices. Sheffield's lawyers filed paperwork demanding the FTC withdraw its recent settlement agreement, which barred him from serving on Exxon Mobil's board as part of Exxon's acquisition of Pioneer Natural Resources.
In a 23-page response, Sheffield denied the collusion accusations, asserting that the FTC misrepresented his communications with competitors and deprived him of due process to defend himself. The FTC alleged that Sheffield exchanged messages with OPEC officials and other U.S. oil executives to control oil production levels and inflate crude prices, particularly during a period of record-high gasoline prices in the U.S.
Pioneer, the largest oil producer in the Permian Basin, emphasized that the FTC's case was based on a false narrative and misinterpretation of applicable statutes. Sheffield clarified that his remarks about production cuts were in response to investor demands for higher returns, not collusion with OPEC.
Despite being questioned by the FTC for four hours in April, Sheffield's lawyers claim that he was not given the opportunity to explain his communications with business rivals. However, the FTC maintains its stance on the allegations, stating that Sheffield publicly advocated for production limits while privately communicating with OPEC representatives.
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