The Department of the Interior has determined that oil and gas companies owe it a ton of money for leases to drill on government land.
The problem was actually caused by the government. It never sent its collection agency out to get the money.
The problem may not be that Exxon or Conoco should pay their bills. The amount is unlikely to break them. But, the new Democratic Congress could decide that the issue is part of a larger one. Oil companies may to much money, they say. And, if their cash flows are enhanced by failing to pay the govenment, all sorts of hearings may start and the drum beating about oil profits and the poor old US Govenment may lead to the kind of backlash Big Oil would like to avoid.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies he writes about.
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.