BRIAN ROSS REPORTS
ALERT: A New Message From Osama Bin Laden Is on the Way
Legal Powerhouse Olson Will Take W.Va. Court Case to SCOTUS
Panel OKs "Boot Camp" Bill
Oil Giants to Appear Before Congress
Bush Signs CNMI Immigration Bill into Law
Embattled Official Defends Pricey Hand Towels
Shock and Awe on M Street
WEWS Cleveland: Natural Gas Boom Has Hidden Danger
Lobbyists Making Even More Money Than Ever
Thanks to You, the Blotter Marks Second Year With More Success
White House Ousts Top Official Accused of Political Favoritism
Second Trial for Boeing Whistleblower
Undercover Investigation: One-Stop Shopping for Steroids
Report: U.S. Anti-Corruption Efforts Looking Good (in Iraq)
CIA Tape Probes, Still Chugging Along
Ex-KBR Workers to Testify on Contract Fraud
McCain Aided Arizona Businessman
Duke Briber Hasn't Made Bail, Judge Says
Rezko out on Bail
Despite Admission, Latest Hill Scandal "Still a Whodunit"
Radical Ties an Issue as Dems Debate
TOP BLOTTER CATEGORIES
- Abramoff Lobbying Scandal
- American Al Qaeda
- Avian Flu
- Beirut Hospital Out of Gas
- CIA
- CIA Secret Prisons
- D.C. Madam Affair
- FBI
- Federal Air Marshal Service
- Homeland Security
- Hurricane Katrina
- Mark Foley Internet Scandal
- Millionaire Sex Scandal
- Nigerian E-mail Scams
- Norman Hsu, Clinton Fundraiser
- NSA: Wiretapping
- Osama bin Laden
- Payola
- Pharmacy Investigation
- Speaker of the House Dennis Hastert
- Terror
- U.K. Airline Terror Plot
- U.K. Bombing Attempts
- Wen Ho Lee
- William Jefferson
- Zarqawi
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."
Click Here for Full Blotter Coverage.
January 10, 2008 | Permalink | User Comments (45)
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
Would there be any use to try and convict anyone for the theft? Blackwater has not been convicted, for their crimes. The One officer at AbuGahrib, who was convicted, his conviction has been reversed. It seems as if, they can steal us blind, disobey the law of the land, and not pay a penalty for it. We need our Constitution restored and a complete new slate of legislators elected. There is NOT one candidate left that is for bringing the troops home now and restoration of our Constitution, except Kucinich. He also wants Universal healthcare for all, same as our Legislators have - taxpayer paid. Now to top it all off, the dems won't allow him on the Tx primary ballot because he won't swear to uphold ANY candidate that gets chosen - he says he can't since they ALL are for war.
Posted by: delicado | Jan 13, 2008 3:03:57 PM
No one will ever be convicted of any of this, since our Constitution has been compromised, and seems like all the Republicrats and Demicans favor all of Bush's cronies.
Posted by: delicado | Jan 13, 2008 3:17:34 PM
To Ted...
Government is not bad, its WHO is running it that are! For eight years the American public has been lied to over and over again, so being negative on the subject is understanding, but my question has always been and will continue to be, "what are they hiding from us, and why?"
Everyday, there seems to be a NEW form of scandel popping up regarding this administration.
If sex is something that props the American public to force impeachment, what hasn't the current scandals in most government agencies, Impeachment is way over due! There is zero accountability in this administration, noting but cover ups and lies!
Posted by: 1oldlady | Jan 13, 2008 3:32:11 PM
O'l mother Hubbard went to the cubbard to get her poor dog a bone, but when she got there the cubbard was bare. But the auditor said there were four.
Posted by: Hoos | Jan 13, 2008 5:00:25 PM
just impeach Bush & Cheney already, then ship them to the Hague. Umm Kay.
Posted by: Mr. Mackie | Jan 13, 2008 5:02:06 PM
For anybody wondering why, day after day, the citizens of American are outraged, disgusted and embarrassed by the actions of the DickNBush government, here's a key reason: Nancy "Impeachment-is-off-the-table" Pelosi, who unilaterally granted these criminals immunity from prosecution for their high crimes and misdemeanors.
This utterly incompetent political hack will go down in history as the worst Speaker of the House ever. She will live in infamy for openly declaring to the most criminal president and vice president ever that "You can do whatever you want, we in Congress won't do our constitutional duty and stop your high crimes and misdemeanors. H'ell, we won't even bother to open an impeachment investigation, and we'll just ignore Kucinich's Articles of Impeachment for Cheney, HR #333. So go ahead, destroy the Constitution, abuse the Bill of Rights and make a mockery of the American democracy. We'll look the other way."
Any rational person will hope and pray and do all they can to ensure that Cindy Sheehan defeats Pelosi in the next election.
BTW: If you really want to find the "missing" oil - look into a farm in Crawford, TX.
Posted by: ALEX H. | Jan 13, 2008 5:57:45 PM
I found it interesting that no mention is made in the "report" about the current status of the SPR, that is, how many millions of barrels of crude oil does it contain now. 1) Did the SPR's Gulf Coast salt dome expansion go as planned? 2) Has Bush continued his secretive SPR "oil depositing" program and how much has been "deposited" into the SPR since Bush began this several years ago? 3) At the DOE's SPR website, there is no indication that any of this is happening, so exactly what is the current level of the SPR and has this secretive SPR "oil depositing" had any adverse impact on worldwide and domestic oil prices? Just curious.
Posted by: The Oracle | Jan 13, 2008 8:15:18 PM
i dont know why everybody says the oil is missing,
more likely as with the glock's for iraq - they simply never existed.
think about it, what's easier - losing 300,000 barels of oil and over 200,000 guns,
or just moving the moey to an offshore account and putting guns & oil down in the books.
afterall, it's not like the books are gonna get an audit is it!
Posted by: john | Jan 13, 2008 8:51:18 PM
That's probably gone on in all president's terms. It's only important now cause Tricky Dicky isn't getting his kick back from Haleburton on it.
Let's all keep supporting the SSDD teams!
Posted by: Sue | Jan 13, 2008 9:37:50 PM
Has anyone checked Cheney's bunker?
Just another feather in the cap of the fascist government. Anyone ready to stop talking, and to begin the revolution?
Posted by: DOGISMYTH | Jan 14, 2008 12:30:39 AM
Goodness, we have some conspiracy theorists here.
I would understand a barrel or two, but 300,000? Something is not right, and it's more than computer error, I'm sure.
I don't care to point fingers but I think I can more or less agree with the most reasonable of posters here.
Posted by: Patron of Healing | Jan 14, 2008 7:48:53 AM
Like a pyramid,the higher up you go,the closer the sides-here,Democratic and Republican-get to each other.That's why Pelosi took impeachment "off the table",and why the D's have done nothing to stop any plans the Bush and his 'bots have-up to and including attacking Iran. They're completely ignoring their own NIE.
This reminds me of another "missing" debacle:Donald Rumsfeld announcing that the Pentagon could not account for $2.3 TRILLION dollars.Anyone remember that? He said it on September 10,2001... needless to say,this stunning news was trumped by even more stunning news the following day.
For all we know, this "missing" oil (and the missing trillions)is being used to fuel some Black Operation(s) somewhere in the world.
Posted by: Passenger57 | Jan 14, 2008 10:09:40 AM
When tankers arrive in Galvaston or Houston for off loading to the reserves, who knows where the oil is routed to? Could it possibly ended up in GW's/Cheennnnees oil fields?
And who would know? If the govt. can keep secrets about recon. aircraft for over 20 years why would one think that this absconding with a couple of barrels of oil every shipment couldn't have happened?
Posted by: Houndawg | Jan 14, 2008 10:23:12 AM
Has anyone checked the oil barges to Paraguay? Just asking. :)
Posted by: deborah | Jan 14, 2008 10:25:48 AM
Very Humorous, indeed...
Look to the solution. Take all factors into consideration, be it truth or lie, and find out what happened (for only each of you, seperately, can determine that).
Commenting like this is paramount to complaining.
Is this what we have become? A nation of complainers? Complacent, just enough to complain from our cube, our dwelling, our mental prisons, etc.
Seems like Capitol Hill is winning the "War of The Minds"... over you all.
Posted by: Moo-Baa | Jan 14, 2008 10:30:07 AM
According to a report from the U.N. news service IRIN, approx. $25 million in oil is pilfered every day from Iraq, due to the elimination of metering equipment. For that quantity, ships and pipelines must be involved. No one knows how much is being stolen. Add it up. $25 million a day, tax-free, 5 years. Nothing will change as long as the powers that be...are still in power.
Posted by: Bob Thatch | Jan 14, 2008 11:06:12 AM
Give up hope, all has been lost. Stop worrying about how fast the world is falling apart and put your energy, time, and money into something useful for yourself and family. Become self-sufficient in some aspect of your life, because the end of the dream is nearly upon us.
Posted by: Brandon G | Jan 14, 2008 3:24:50 PM
Well even before 9/11 trillions went missing in the DoD and HUD. I suppose 9/11 stopped any serious investigation of that. Makes you wonder just how much money these ciminals need to feel secure?
Also this stuff comes at you from so many different angles its hard to get anyone to focus in just one direction. Must be a tactic to overwhelm the public so they will just throw up their hands in frustration.
Of course if I cheat the IRS out of 5 dollars it will be handled quickly with oberwhelming force.
"Total undocumented accounting adjustments for reported periods for the Department of Defense [and HUD for fiscal 1998-2000] amount to a whopping $3.3 trillion, or $11,700 for every American.
Posted by: rota | Jan 14, 2008 7:42:27 PM
Sure, its all George Bush's fault! And so was the American civil war! Hey, I mean, its not like both parties are hopeless and corrupt.
Sheez, louiz, get a life!
Posted by: Franky | Jan 14, 2008 11:06:32 PM
And there's $2.3 TRILLION (PLUS) of taxpayers' $$$ missing from the Pentagon while under the comptrollership of Rabbi Dov Zakhem. Rummy announced it publicly on.... you got it... September 10, 2001. How opportune...the day before the incident that conveniently took away all of our civil liberts via the "Patriot" Act, Real ID Act, Military Commissions Act, traitor John Warner's National Defense Authorization Act and last but not least Homegrown Terrorism Prevention Act of 2007 (where the first amendment will be gutted--forget about the detested "Hate Crime Bills" that couldn't get passed, this will be the new "Hate Crime Bill" that the ADL could never get past the American people, who value their first amendment rights.
Where are you Dov?????!!!!! You got some splainin' to do.
Posted by: Kim | Jan 15, 2008 1:41:39 AM
The missing oil is all safely tucked away in a vault next to GWB's Iraq exit strategy.
Posted by: Mike | Jan 15, 2008 6:58:23 PM
if a republican is in power you know it went to one of their supporters, if a democrat was ,would go to one of theirs. all politicians feed at the public through. otherwise why spend millions to get a job that pays thousands? the comment on hemp needs review. from what I read it is a weed that grows in poor soil. we could get ethonoil from it cheaper then corn. thus not raise cost of beef. but then archer daniels has lock on corn, so thats the way we are going. some argument takes more btus to get one from corn then is produced. we need to get more nuculer power, and cleaner coal to reduce buying oil from chavez, mexico, and the mid east. guess they don´t have good lobby?
Posted by: rugby4u2 | Jan 18, 2008 8:35:50 AM
Who cares? They're all a bunch of crooks anyway, be they politicians, oil companies, or big business.
Posted by: George | Jan 18, 2008 11:21:02 PM
lets go after some guy who robs a 7/11 but just wink at this? don´t want to hurt any gov. workers feelings.
Posted by: rugby4u2 | Jan 25, 2008 3:30:55 PM
Global warming is out of control, so it'll all be over soon, anyway, Thankfully.
Posted by: AR | Feb 2, 2008 10:02:10 PM
Post a comment
