In October, Exxon agreed to purchase Pioneer for approximately $60 billion, with regulatory approval required. One of the conditions set by the Federal Trade Commission (FTC) for closing the deal was that Scott Sheffield, the founder and former CEO of Pioneer, would not be allowed to join Exxon’s board or provide advisory services once the acquisition was finalized.
The FTC has accused Sheffield of colluding with OPEC and OPEC+ to reduce oil production through public statements and private communications. The alleged coordination could have resulted in higher prices for American consumers and increased profits for companies. However, Pioneer denies these accusations and believes that Sheffield’s actions were intended to raise awareness about issues facing the energy industry during the pandemic.
Despite this disagreement, Pioneer will not prevent the merger from going through. The company believes that the allegations are a misunderstanding of the US and global oil markets, and they believe that Sheffield’s actions were intended to advocate for the industry rather than engage in collusion.
Pioneer was founded by Sheffield in 1997 and has been a key player in the shale oil boom in the US. The company became the largest oil producer in Texas after acquiring other firms, and its operation with Exxon will make it even larger, making it one of the largest producers in