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.
Right.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies he writes about.
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