Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Oil Companies, Bureaucrats Caught With Pants Down


Report uncovers sex, drugs, corruption between energy firms and regulators.

Our nation's energy policy -- or lack thereof -- will be central to this year's presidential slugfest. While Obama cautions against tapping into our natural gas resources (citing potentially dire environmental consequences), McCain and Palin advocate aggressive drilling to break our dependence on foreign oil.

Meanwhile, we lowly citizens must painfully empty our wallets to fill our gas tanks and heat our homes, and hope that government representatives are looking out for our best interests.

And as long as those best interests include public officials doing blow and sleeping with energy company employees, we're in good hands.

The Interior Department, the agency responsible for keeping tabs on the Minerals Management Service, or MMS, released a report alleging that energy industry representatives and the government workers charged with regulating their behavior have cultivated a "culture of substance abuse and promiscuity."

The MMS, according to the Wall Street Journal, "oversees the nation's natural-gas, oil and other mineral resources on the outer continental shelf, and [draws] up leases for drilling in offshore waters," and in some years is Washington's biggest revenue generator, second only to the Internal Revenue Service. Its royalty-in-kind, or RIK, program allows oil companies to pay for drilling rights with oil instead of cash.

Crude's fantastic run over the past few years means the RIK program has generated tens of millions more in revenue than they would have had the royalties been paid in cash. Needless to say, "cozy" relationships between oil companies and government officials could unduly influence the allocation of these valuable contracts.

In addition to the sex and drugs, employees from Chevron (CVX), Hess (HES), Gary-Williams Energy and a US unit of Royal Dutch Shell admitted to giving gifts and picking up restaurant and bar tabs for government employees. They denied, however, that such actions were rewarded with preferential treatment.

Needless to say, such denials are suspect. If there's a planet where free booze, sex and drugs don't come with strings attached, I'd like a one-way ticket, please.

Both parties have seized on the report to point the finger at the other. As the election nears and the mudslinging heats up, we'll no doubt hear more than a few cheap shots hurled at these promiscuous petroleum players.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opin= =3D =3D3D ion about the performance of securities and financial markets by = the wr=3D iter=3D3D s whose articles appear on the site. The views expresse= d by the wri=3D ters are=3D3D not necessarily the views of Minyanville Medi= a, Inc. or members=3D of its man=3D3D agement. Nothing contained on the web= site is intended to con=3D stitute a recom=3D3D mendation or advice address= ed to an individual investor =3D or category of inve=3D3D stors to purchase= , sell or hold any security, or to =3D take any action with re=3D3D spect t= o the prospective movement of the securit=3D ies markets or to solicit t=3D= 3D he purchase or sale of any security. Any inv=3D estment decisions must b= e made =3D3D by the reader either individually or in =3D consultation with = his or her invest=3D3D ment professional. Minyanville write=3D rs and staff= may trade or hold position=3D3D s in securities that are discuss=3D ed in = articles appearing on the website. Wr=3D3D iters of articles are requir=3D = ed to disclose whether they have a position in =3D3D any stock or fund disc= us=3D sed in an article, but are not permitted to disclos=3D3D e the size o= r direct=3D ion of the position. Nothing on this website is intende=3D3D d = to solicit bus=3D iness of any kind for a writer's business or fund. Mi= ny=3D3D anville mana=3D gement and staff as well as contributing writers wi= ll not respo=3D3D nd to em=3D ails or other communications requesting inves= tment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos