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Government Literally in Bed with Big Oil

September 11th 2008 06:28
Government Literally in Bed with Big Oil

Oil Well image
Sex, drugs, and corruption – those are what an investigation by the Inspector General had found in the Interior Department. Thirteen government employees are named in the report which was released today by the investigators today. The accused are employees that sell U.S. mineral rights to the oil companies. These sales account for the government’s second biggest source of income behind taxes.


The Inspector General says they rigged contracts, engaged in illegal moonlighting, drugs, sex and gift-taking from oil company representatives.

The allegations included – one employee attending a “treasure hunt” in the desert with all expenses paid by an oil producer – a supervisor, Gregory W. Smith, purchased cocaine from a colleague, then boosted her performance award – that same supervisor having sex with subordinates, and steering government contracts to an outside business that employed him part-time.

Inspector General Earl E. Devaney wrote - The investigations reveal a culture of substance abuse and promiscuity by a small group of individuals wholly lacking in acceptance of or adherence to government ethical standards.

These events took place in the Denver Minerals Management Service office which is responsible for marketing the oil and gas that energy companies barter to the government instead of making cash royalty payments for drilling on federal lands. These “Royalty-in0Kind” payments brought in $4.3 billion just last year. Once the bartering is done the government then either puts it in the emergency stock pile, or resell it to energy companies.


The Denver office has included 55 people from 2002 and 2006, close to one-third of them received gifts and gratuities from oil and gas companies.

The Associated Press e-mailed Smith who said he had not seen the report and could not respond. Nine other employees in the Denver office are named in the report.

The Minerals Management Service has previously been accused of mismanaging the collection of fees from oil companies and writing faulty contracts for drilling on government land and off-shore.

Democratic Senator Bill Nelson of Florida said, “The government employees who oversee off-shore oil drilling are literally and figuratively in bed with big oil. This all shows the oil industry holds shocking sway over the administration and even key federal employees.”

He went on to say, “This is why we must not allow big oil’s agenda to be jammed through Congress.”

Well, well, well, finally we know how the oil companies get to report these ridiculously high record profits every quarter. Also helps to explain why we end up so dependant on foreign oil.

The worst part of this all is that the government went after companies like Enron and the like, but yet they will not go after the people within the oil companies responsible for allowing the bribes and corruption to further the company. They will turn the other cheek on them, and probably do the minimum that has to be done to the government employees involved.

This comes on the heels of OPEC announcing they would slow production because of falling oil prices. Add in the fact that Hurricane Ike is in the Gulf of Mexico about to wave at the oil rigs as it heads to Texas, and I suggest everyone fill up their gas tanks by early Friday. Otherwise you probably be paying about a dime to fifteen cents more a gallon when you do so over the weekend.


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