FTC bars Scott Sheffield from Exxon board, rejects challenge over OPEC ties

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The Federal Trade Commission said Tuesday that Scott Sheffield, founder and former chief executive of Pioneer Natural Resources, would not be allowed to directly challenge its order blocking him from Exxon Mobil's board, following the oil giant's 2024 acquisition of Pioneer.

The commission last year alleged evidence uncovered as part of its review of Exxon's $63 billion acquisition of Pioneer showed Sheffield had past communications with members of the Organization of Petroleum Exporting Countries, or OPEC, concerning the output of oil and gas, which would have potentially hurt crude oil competition.

The FTC ultimately approved the sale, but as a result of Sheffield's alleged OPEC ties, he was barred from joining Exxon's board, a decision that was finalized in January under the Biden administration. Despite the allegations, Sheffield was not charged with violating antitrust laws.

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Sheffield filed a petition in March requesting the FTC reconsider the final consent order, which also prohibits Exxon from nominating, designating or appointing any other Pioneer employees or directors, other than certain named individuals, to its board for five years.

Although the FTC's latest decision was unanimous, the commission said it would still consider Sheffield's arguments under a separate rule that lets the commission reconsider prior decisions.

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For those who hadn’t been following previously, his communications with OPEC that triggered the commission’s decision was him telling them, or folks associated with the OPEC, during COVID that continuing record production during the period of government shutdowns and crashed demand could bankrupt many in the industry. Price of oil went “negative” even during that time.