In Bed with Big Oil—Literally

A culture of corruption. The Interior Department Inspector General investigated misconduct at the Minerals Management Service—the office charged with collecting billions of dollars of revenue from oil and gas companies—and found that nearly one-third of the staff in this program received gifts from oil and gas companies. Several government staff members engaged in illegal drug use and had sexual relations with oil company representatives. Senior government executives colluded to award lucrative contracts that benefitted them. The Inspector General reported, “When confronted by our investigators, none of the employees involved displayed remorse.” The employees simply told themselves that ethics rules just didn’t apply to them. [Washington Post [1], New York Times [2]]

The Bush Administration refuses to prosecute. The U.S. Department of Justice has declined to prosecute the employees for their ethics-law violations and shady deals. The highest-ranking official named in the Inspector General's reports, Lucy Denett, is accused of illegally arranging a million-dollar deal for two of her good friends and former employees. The Justice Department refuses to explain why they have dropped that case. Could it be related to the fact that she is the wife of an official at the White House Office of Management and Budget? [Washington Post [1]]

Billions to oil companies. In another investigation, the Inspector General found that the same office allowed oil companies to avoid paying over $10 billion in royalties for offshore oil drilling. Among other things, the agency allowed oil companies to lower their share of costs after deals were signed, making those deals more profitable to the companies. [Wall Street Journal [3]]

Business-as-usual for Big Oil. Headed by a president who happens to be a former “oilman,” the Bush Administration has repeatedly put Big Oil’s interests ahead of America’s. Bush Administration energy policies were written by a secret energy task force that included executives from the world’s biggest oil companies, and the administration has continued to push for policies that would inflate corporations’ already record-setting profits—even as gas prices have gone through the roof. [Associated Press [4], Center for American Progress [5]]