Former Pioneer Natural Resources CEO Scott Sheffield and his son Bryan have increased their political contributions since 2020, according to the non-profit Public Citizen.
In October 2023, ExxonMobil announced its acquisition of Pioneer, Texas’ leading oil producer. Scott Sheffield is set to receive a $30 million payout and his Pioneer stock will transfer to Exxon. When the deal was finalized in May, the Federal Trade Commission banned Sheffield from joining Exxon’s board.
The FTC claims Sheffield attempted to collude with the Organization of Petroleum Exporting Countries to reduce oil output during the early days of the pandemic. Sheffield denies these allegations.
Public Citizen’s report tallied political contributions made by Scott and Kimberley Sheffield, Bryan and his wife Sharoll, and Pioneer’s Political Action Committees. The total surpassed $6.2 million since 2010.
Election 2024
Explore the latest news about what’s at stake for the climate during this election season.
Public Citizen’s report highlights a family oil and gas empire with close ties to Texas regulators now under public scrutiny following the sale to ExxonMobil.
Since the FTC, led by Biden appointee Lina Khan, barred his father from ExxonMobil’s board, Bryan Sheffield has increased his contributions to Republicans. Less than three weeks later, Bryan Sheffield donated $413,000 to the Republican National Committee fund for Donald Trump’s presidential campaign.
“Oil barons cashing out and making significant political contributions is a major issue for our democracy,” stated Public Citizen researcher Alan Zibel.
The report suggests the Sheffields’ contributions to Texas oil and gas regulators at the Railroad Commission create a conflict of interest. Since 2010, the Sheffields and Pioneer PACs have contributed nearly $400,000 to Railroad Commission Chairman Christi Craddick.
As a commissioner, Craddick votes on matters relating to Pioneer without recusing herself and is up for re-election this year. The Craddick family also has interests in Pioneer oil and gas wells in West Texas.
Justin Dudley, a campaign consultant for Craddick, denied that political contributions influence her votes, which he claimed are based on “fact and merit alone.”
A consultant for Scott Sheffield declined to comment on political contributions, and ExxonMobil did not respond to a request for comment.
Long-standing Ties Between Texas Regulators and Pioneer Family
Scott Sheffield began his career in the oil industry at his father-in-law’s company, Parker & Parsley Energy, which merged into Pioneer Natural Resources in 1997. Pioneer grew significant holdings in the Permian Basin and became an early leader in the fracking revolution.
Bryan Sheffield, following his father’s footsteps, founded Parsley Energy in 2008, focusing on the Permian Basin. He took the company public and sold it to Pioneer in 2021. Bryan Sheffield is now a partner at the Austin-based private equity firm Formentera Partners.
“Bryan Sheffield is becoming a significant Republican donor,” said Zibel. “He appears to be escalating his political involvement.”
Bryan Sheffield and his wife contributed $1 million between 2022 and 2023 to the Texans for Lawsuit Reform PAC. The Sheffields and Pioneer PACs have also donated a combined $310,000 to Texans for Greg Abbott, the state’s Republican governor and a staunch advocate of the oil and gas industry.
Christi Craddick has received the lion’s share of the Sheffields’ contributions to Railroad Commission candidates. The elected commissioners hold six-year terms, voting on matters like contested permit applications and shaping commission rules and policies.
Both the Craddicks and the Sheffields have strong ties to the Permian Basin. Scott Sheffield’s focus at Pioneer was on the Permian Basin, while Tom Craddick, Christi’s father, was raised in Midland and elected state representative in 1969. He had dealings with Parker & Parsley (Pioneer’s precursor) as early as 1988.
The Craddicks also hold a substantial portfolio of oil and gas leases. According to Texas Monthly, Tom Craddick has stakes in approximately 600 oil and gas leases, many jointly owned with Christi. The family earns millions annually from these holdings.
One lease, Ringo 9, shows potential conflicts of interest. Pioneer drills oil and gas at the Ringo 9 lease near Midland, where Craddick holds a stake in the mineral rights. While in office, the Railroad Commission has issued permits to Pioneer and Parsley to flare natural gas at Ringo 9.
These flaring permits allow drilling for oil while burning off unwanted gas. Without these permits, Pioneer would need to limit drilling and profits. Craddick has voted to authorize these exemptions without disclosing her stake in the property. In 2022 and 2023, the Railroad Commission granted six flaring exemptions for Ringo 9, according to the flaring permit database.
Texas administrative code states that a Commissioner with “a personal or private interest” in a matter before the Commission must disclose it and may not vote or participate in the decision.
Railroad Commission spokesperson Patty Ramon referred questions about potential conflicts of interest to the elected commissioner’s staff. Craddick’s political consultant did not respond to specific questions about her stake in the Ringo 9 lease.
“This company is not used to aggressive antitrust or environmental regulators,” Zibel said, referring to Pioneer. “They seem to come from a West Texas culture where the industry dominates.”
Virginia Palacios, executive director of the non-profit Commission Shift, explained that Texas ethics laws allow Railroad Commissioners to accept contributions anytime, even when not campaigning.
“This structure allows for influencing commissioners’ decisions on key matters, even without a direct quid pro quo agreement,” Palacios said.
Commission Shift released a three-part report on corporate capture of the Railroad Commission in 2021.
“Policy reforms are needed to prevent ethical breaches, improve transparency, and regain public trust,” Palacios and co-author Andrew Wheat wrote.
Sheffield Under Scrutiny
Scott Sheffield faced the FTC’s scrutiny in 2020 when oil prices plummeted due to the pandemic. Pioneer Natural Resources and Parsley Energy petitioned the Railroad Commission to curtail oil production, hoping to stabilize prices and avoid catastrophe for the industry. Sheffield mentioned publicly that if Texas cut production, he hoped OPEC would follow suit.
The Railroad Commission rejected the proposal.
This story is funded by readers like you.
Our nonprofit newsroom provides award-winning climate coverage free of charge and advertising. We rely on donations from readers like you to keep going. Please donate now to support our work.
Four years later, the FTC alleged that Sheffield’s actions aimed to collude to raise crude oil prices and increase industry profits. “Through public statements, text messages, in-person meetings, WhatsApp conversations, and other communications while at Pioneer, Sheffield sought to align oil production across the Permian Basin with OPEC+,” the FTC wrote.
The FTC referred the investigation to the Department of Justice. On June 27, the Senate Budget Committee announced a probe seeking information from 18 more oil companies about efforts to collude with OPEC.
Sheffield insists the FTC’s allegations “are based on a false narrative, mischaracterization of the facts and evidence, and a baseless interpretation of the applicable law.” He has hired political lobbyists to advocate on his behalf.
Original Story at insideclimatenews.org