Oil Price Fixing Allegations

SOURCE www.cnn.com
Former CEO of Pioneer Natural Resources accused of colluding with OPEC to inflate oil prices, leading to an investigation by the FTC.

Key Points

  • Former CEO of Pioneer Natural Resources, Scott Sheffield, accused of attempting to align US oil production with OPEC.
  • FTC alleges Sheffield communicated with OPEC officials to keep oil output artificially low.
  • ExxonMobil's acquisition of Pioneer approved under conditions to prevent Sheffield from joining their board.

Pros

  • Regulatory bodies like the FTC are actively investigating potential anticompetitive behavior in the oil industry.

Cons

  • Allegations of collusion between a major US oil producer and OPEC could lead to unfair pricing for US consumers.