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Oil Crisis As Barrels Go Missing, According to Audit
January 10, 2008 4:19 PM
How do you not notice when 308,000 barrels of oil go missing?
That's the question government auditors were asking after they looked into the Department of Energy's management of oil received for the Strategic Petroleum Reserve, a critical program to assure energy stability in the U.S. in case of an oil crisis.
To help add to the reserve, DOE receives a portion of the royalty oil that the Department of the Interior gets in return for allowing petroleum companies to drill on government lands and waters.
The department's Inspector General Gregory H. Friedman and his auditors found that in 28 percent of the oil transfers they examined, the amount received did not match the estimated amount to be shipped by the Interior Department's Minerals Management Service.
"To illustrate our findings regarding discrepancies, during a four-month period in Fiscal Year 2005, two Department contractors reported receiving 308,000 barrels of royalty oil less than the amount that MMS had scheduled for delivery to the market center. Yet, despite this significant shortfall, the Department took no action to resolve the discrepancy and to ensure that it had received all of the oil shipped by MMS," according to the audit.
Eventually, the auditors received documentation from MMS to explain reasons for the discrepancy, including "a decision by MMS to sell royalty oil rather than ship it to the Department," although 32,000 barrels could still not be accounted for in the above example.
Reached for comment, a spokeswoman for the department issued a statement. "We are confident that all royalty oil transferred to DOE was properly delivered to the SPR. However we recognize the need for enhanced controls and as such, we have followed the recommendations of the report and taken steps to strengthen the RIK program by collecting additional supporting documentation for oil receipts and increasing coordination with MMS to facilitate monthly confirmation of the quantity of oil transferred."
Last year, the Interior Department's MMS was investigated by the Government Accountability Office for losing track of billions of dollars in royalties. A GAO report in May 2007 determined that an increase in the royalty rates, which were among "the lowest government takes in the world," could potentially increase revenue by $4.5 billion over 20 years and help ensure "a fair rate of return for the American people from oil production on federally leased lands and waters."
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January 10, 2008 | Permalink | User Comments (45)
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you mean that oil companies have been shorting the government and no one did anythign about it?
For the love of my country can we get off oil already. We don't need it. Between hemp plastics and hydrogen produced from an aliminum/gallium catalyst we have all the energy and raw material we need. We do not need OIL!
Posted by: Louis | Jan 10, 2008 4:49:53 PM
This is an old story. There are always more barrels on the trucks leaving for a location than there are barrels actually arriving in the trucks at that location. What happens to the other barrels? Somehow they get waylaid during the trip.
Posted by: US Citizen | Jan 10, 2008 4:52:56 PM
Has anybody really missed the point that the CROOKS run the show now? I know the MAINSCREAM embedded crowd don't know squirrel juice from butternut puppy drool, but do the american people still not know what the real gig is all about???? zzzzzzzzzzzzzzzzzzzzzz
Posted by: daddyblue | Jan 10, 2008 5:20:56 PM
cmon now, you dont really expect me to believe there is some significant measure of ineptitude that was the cause of the barrels going missing do you? those missing barrels are the tip of the iceberg, the statements of the last paragraph of the story tell the real story, there is some serious graft/grifting going on in the MMS, probably been going on for awhile now and know why no one knows much about it or cares to do much about it?
THE ONES IN CHARGE (REPUBLICANS) ARE GETTING RICH(ER) BECAUSE OF IT SO WHY SHOULD THEY DO ANYTHING ABOUT IT? THEY LOVE IT!!!!!!!
GO HILLARY ,YOU AND BILL AND NANCY LAY THE LAW DOWN ON THE REPUBLICANS!!!!!
Posted by: bah | Jan 10, 2008 5:38:57 PM
Halliburton has them.
Posted by: Susan in Chicago | Jan 10, 2008 7:04:29 PM
Just another way G. W. is lining his buddies pockets.
Posted by: TopseyKrett | Jan 10, 2008 7:38:41 PM
Although most of the oil seems to have been found, it is a worrisome reminder of the Warren Harding scandal.
Harding also had a reputation of being rather low in intelligence. He died in office, possibly poisoned, while still believed unconnected to the oil thefts.
Posted by: John Williams | Jan 10, 2008 7:41:06 PM
The irony is that it doesn't matter who wins the election. They are all the same, paid by the same people, with the same goals. They give lip service to get in office and then do as they are paid to do by the people that are truly in power. Wake up America!
Posted by: Lawrence | Jan 10, 2008 9:35:45 PM
Check the barn in Crawford,Texas..It should be no big mystery..Bush and his "REPUBLICAN GUARD" make the MAFIA look like grade school kids. When they steal an election what is a few barrels of oil?? NO REPUBLICANS IN 2008...
Posted by: Joe MUrphy | Jan 10, 2008 10:18:50 PM
I knew it! So this is why we are paying so much more for our gas. That stuff is getting a little expensive. Crap....I must be addicted to the stuff or something because I keep buying it. I just can't seem to stop myself.
Posted by: Alien | Jan 11, 2008 4:52:58 AM
Just goes to show that the government can't be trusted with anything.
Posted by: Ted | Jan 11, 2008 8:53:31 AM
Bush bin Laden is feeding his corpora-terrorist trolls again.
I am waiting for Dictator Bush and Cheney Halliburton to be tried for treason... with all possible penalties for treason on the plate.
Cheers,
Lori
Posted by: Lori Price | Jan 12, 2008 3:46:44 PM
Try Bush Snr's tanker fleet which he now owns...the biggest on the planet...there's your oil!
Posted by: Michael Miller | Jan 13, 2008 7:41:04 AM
This has Cheney written all over it!!!
Bush is complicit, as usual, but look the VPOTUS to answers.
Impeach the both of them, THEN, try, convict and imprision the both of them AND their minions. We The People are long past overdue for the Fall of the Bush/Cheney Crime Family.
Posted by: siri@legitgov.org | Jan 13, 2008 7:58:57 AM
More than just the oil companies shorting the government, this is someone in the government actually stealing the oil. There isn't any other explanation.
Gerorge and Dick are stand-up honest guys though so I am sure this multi-million dollar robbery by their friends will be thoroughly investigated and the perpetrators brought to justice.
If there is anything this government stands for it's honesty, integrity and justice, right? :-)
Posted by: Jeremy | Jan 13, 2008 12:30:28 PM
Sounds like we're becoming like Iraq.
Posted by: Dave G | Jan 13, 2008 12:51:38 PM
Oil & car companies have worked hard to keep up the lie that American's can't produce cars getting high gas mileage when even India can produce cars getting 50MPG & the average car in Europe for years gets 70 MPG. They then said THE BIG LIE American's don't want them; the oil companies then overbilled Americans at the gas tanks to the profit of $4b every 3 months during the years 2005 & 2006;when taken B/4 Congress in 2005 Congress did nothing allowing the theft of Americans to continue.Cars are so overpriced they "lose" $5,000+ by taking them off the lots. Wake Up American's! $13b was given to oil companies right after they denied over $240m to disabled vets & none for health benefits. More vets have died here in America than in Iraq due to Congress lack of funding & Taking away THEIR benefits while stockpiling for themselves.
Posted by: yellowbird2525 | Jan 13, 2008 1:34:39 PM
Something needs to be done. Somebody needs to have an answer. Ron Paul has that answer. He has concrete plans in place to lessen our dependence on Oil, Drinking water, and toilet paper. He also plans to send greenhouse gases into outer space in giant Hefty bags.
Posted by: Jayson Barclay | Jan 13, 2008 1:39:02 PM
Ron Paul would disband the Department of Energy and not allow it to tell us where the direction of our energy sources should go. He is a Republican, but he is one of the only ones, both Democrat and Republican, to not have the desire to line his own pockets. He would put the decision of fueling our vehicles into the hands of the market so that the market could decide the best route, and the free market would certainly be much more careful with 308,000 barrels of oil because that's their profits! The government doesn't care about losing profits and is incredibly inefficient; they just write it off as a loss and pocket the earnings. Please don't consider all Republicans as crooks even though 99% are.
Posted by: Rakkur | Jan 13, 2008 2:06:50 PM
the rich get richer!bush has got to be involved! it would take a barrel lifter thing to get off trucks.or alot of men to lift off in some barn somewhere.LOWER THE PRICE OF GAS NOW!!!
WE ALL NEED TO STOP BUYING IT FOR A WEEK AND WATCH WHAT HAPPENS!! ALL TRUCKERS NEED TO SHUT DOWN ALSO!!DIESEL SELLS FOR 30CENTS MORE PER GALLON THAN GASOLINE!!
Posted by: tcook | Jan 13, 2008 2:24:05 PM
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