American oil tycoon accused of trying to conspire with OPEC to inflate prices

[stonedmegman]

New York CNN —

Scott Sheffield, founder and longtime CEO of a leading American oil producer, attempted to collude with OPEC and its allies to inflate prices, federal regulators alleged on Thursday.

The Federal Trade Commission said 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, or OPEC, the oil cartel led by Saudi Arabia.

Regulators say 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 wider group that includes Russia.

“Mr. Sheffield’s communications were designed to pad Pioneer’s bottom line — as well as those of oil companies in OPEC and OPEC+ member states — at the expense of US households and businesses,” the FTC complaint said.

Unlike with OPEC nations, US oil production is supposed to be decided by the free market, not by coordination among the major players.
https://www.cnn.com/2024/05/02/energy/o ... index.html

[Biker]

So he failed.

Next?

[Animal]

the only way that oil producers have to "price fix" or have any influence on oil prices is in how much oil they put on the market for purchase. If they withhold oil and create short supplies, then the prices will go up. But these companies are all too greedy to sustain that at all. no one wants to be not selling oil and no one has the storage space to just sit on it.

the real market barometer is consumer demand. that's what drives the prices. How many people are buying and how much they need.