U.S. Oil Tycoon Accused Of Colluding With OPEC To Inflate Prices

Federal regulators allege that Scott Sheffield, founder and longtime CEO of a leading American oil producer, attempted to collude with OPEC and its allies to inflate prices, as reported by Matt Egan for CNN.

Regulators claim Sheffield used WhatsApp conversations, in-person meetings, and public statements to try to "align oil production" in the Permian Basin in Texas with that of OPEC and OPEC+. I Photo: Hart Energy

The Federal Trade Commission (FTC) stated that Sheffield, then CEO of Pioneer Natural Resources, exchanged hundreds of text messages discussing pricing, production, and oil market dynamics with officials at the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia.

Regulators claim Sheffield used WhatsApp conversations, in-person meetings, and public statements to try to "align oil production" in the Permian Basin in Texas with that of OPEC and OPEC+, the broader group including Russia.

The FTC complaint alleges that Sheffield's communications aimed to benefit Pioneer's bottom line and those of oil companies in OPEC and OPEC+ member states, potentially at the expense of US households and businesses.