Q&A with Scott D. Sheffield Editor's Note: Pioneer Natural Resources Company was formed in 1997 through the merger of Parker & Parsley Petroleum Company and Mesa Petroleum. Although the search for new reserves had at one time taken the company into deep water and around the globe, Pioneer never lost focus on the basin that has been at the core of its strategy from the start: the Permian. Today, the Permian has emerged as the crown jewel in North America's collection of tight oil resource plays, and Pioneer is in the sweet spot as one of the largest players in the basin. The company's 785,000-acre leasehold gives it ample access to multiple formations and a vast inventory of oil-rich drilling targets. Already the top producer in the Spraberry/Wolfcamp trend, Pioneer is concentrating its Permian efforts on horizontal shale development, and has successfully appraised six highly prospective stacked intervals across its acreage position. To survey the state of affairs for independents in the Permian Basin and assess the road ahead for Pioneer, The American Oil & Gas Reporter asked Scott D. Sheffield to share his insights on topics ranging from the economics of horizontal wells in Permian resource plays to management advice for young industry professionals. After more than 30 years of service at Pioneer and its predecessors, Sheffield will retire as chief executive officer at the end of this year. Questions are in italics followed by Sheffield's responses. 96 THE AMERICAN OIL & GAS REPORTER