FTC Uncovers Oil Price-Fixing Conspiracy, Costing Families $3,000

FTC alleges former Pioneer Natural Resources CEO Scott Sheffield colluded with OPEC officials to limit oil supply and drive up prices. The complaint reveals evidence of price fixing, contributing to 27% of 2021 inflation increases and costing average families $3,000.

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Nitish Verma
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FTC Uncovers Oil Price-Fixing Conspiracy, Costing Families $3,000

FTC Uncovers Oil Price-Fixing Conspiracy, Costing Families $3,000

A bombshell complaint filed by the Federal Trade Commission (FTC) has revealed that Scott Sheffield, the former CEO of Pioneer Natural Resources, colluded with OPEC officials to artificially limit oil supply and drive up prices. The FTC alleges that Sheffield exchanged private WhatsApp messages with OPEC leaders, assuring them that Pioneer and other Permian companies would reduce output to keep prices high.

Why this matters: This scandal exposes the dark underbelly of the oil industry's business practices, which have a direct impact on the wallets of millions of Americans. The revelations could lead to a re-evaluation of the industry's scheme, price influence on energy policy and potentially pave the way for stricter regulations to prevent similar price-fixing schemes in the future.

According to the complaint, Sheffield even threatened to punish any companies that dared to increase production. This private coordination with OPEC contradicts Big Oil's public rhetoric blaming the Biden administration for constraining U.S. production and raising energy costs.

The FTC complaint outlines conclusive evidence of price fixing between U.S. oil producers and companies in cahoots with OPEC. This conspiracy is believed to have contributed to 27% of 2021 inflation increases, costing average families $3,000.

One commenter, Effeteposerat, sarcastically remarked, "Isn't Capitalism about naked self-interest? These guys are just good business people. Increasing shareholder value. You know, the Good Guys. Not like those damn socialists looking to make society more equitable. Greed is Good. Greed Works." Meanwhile, tonyroma stated, "The bad faith has been laid bare. Oil executives themselves are colluding with a foreign cartel to throttle supply and price gouge American consumers to pad their own pockets."

The complaint reveals that Big Oil companies have been colluding with OPEC to artificially limit supply and drive up prices, despite publicly blaming the Biden administration for high energy costs. This conspiracy has had a significant impact on the economy, contributing to inflation and costing average families thousands of dollars.

The FTC's findings shed light on the true nature of the oil industry's practices and their impact on American consumers. As the investigation continues, it remains to be seen what consequences the implicated companies and executives will face for their alleged role in this price-fixing conspiracy.

Key Takeaways

  • FTC alleges former Pioneer Natural Resources CEO Scott Sheffield colluded with OPEC to limit oil supply and drive up prices.
  • Sheffield exchanged private WhatsApp messages with OPEC leaders to reduce output and keep prices high.
  • The conspiracy contributed to 27% of 2021 inflation increases, costing average families $3,000.
  • Big Oil companies publicly blamed the Biden administration for high energy costs while secretly colluding with OPEC.
  • The FTC's findings could lead to stricter regulations to prevent similar price-fixing schemes in the future.