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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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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
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