The Federal Trade Commission has taken action to address antitrust concerns related to Exxon Mobil Corporation’s acquisition of oil producer Pioneer Natural Resources by preventing former Pioneer CEO Scott Sheffield from joining Exxon's board of directors or serving in an advisory role at the company. The move aims to safeguard competition in the oil market and protect consumers from potential price manipulation.
In a statement, Kyle Mach, Deputy Director of the FTC’s Bureau of Competition, emphasized the necessity of barring Sheffield from Exxon's board, stating, “Mr. Sheffield’s past conduct makes it crystal clear that he should be nowhere near Exxon’s boardroom. American consumers shouldn’t pay unfair prices at the pump simply to pad a corporate executive’s pocketbook.” The FTC alleges that Sheffield had attempted to collude with OPEC and OPEC+ to manipulate oil output and raise prices, potentially harming consumers.
Sheffield's communication with OPEC representatives and discussions about aligning oil production in Texas with OPEC+ have raised concerns about his intentions. His appointment to Exxon's board, in addition to his current position on The Williams Companies, Inc. board, has been deemed anticompetitive and in violation of the FTC Act.
The proposed consent order by the FTC prohibits Exxon from appointing Sheffield to its board or involving him in any advisory capacity. It also includes provisions such as restricting the nomination of Pioneer employees or directors to Exxon's board for five years and imposing reporting obligations for ten years under the Clayton Act Section 8.
The Commission's decision to accept the consent agreement and make it available for public comment was passed with a 3-2 vote, with Commissioners Lina M. Khan, Rebecca Kelly Slaughter, and Alvaro Bedoya issuing separate statements. Commissioners Melissa Holyoak and Andrew N. Ferguson dissented and will publish their joint statement.
The FTC will soon release the consent agreement package for public review, allowing comments to be submitted within 30 days of publication in the Federal Register. The Commission's actions aim to ensure fair competition and protect consumer interests in the oil market.
