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Oil Companies Dodging Congressional Hearing Are Rolling in Billions While Consumers Suffer
Today, following news that the chief executive officers of three oil companies--EOG Resources, Devon Energy Corporation, and Occidental Petroleum--refused to testify at a Natural Resources Committee hearing scheduled for April 5, government watchdog Accountable.US released the following statement:
WASHINGTON
Today, following news that the chief executive officers of three oil companies--EOG Resources, Devon Energy Corporation, and Occidental Petroleum--refused to testify at a Natural Resources Committee hearing scheduled for April 5, government watchdog Accountable.US released the following statement:
"It is hardly surprising that EOG Resources, Devon Energy, and Occidental Petroleum are dodging accountability by refusing to testify in Congress," said Kyle Herrig, president of Accountable.US. "While Americans struggle with high gas prices, these companies are doing victory laps, showering their already wealthy executives and shareholders with billions in stock buybacks and bonus compensation. They should be ashamed."
EOG Resources, Devon Energy, and Occidental Petroleum lock up nearly 1.5 million acres of public lands in oil and gas leases, while also making billions in profits that they use to repay wealthy executives and shareholders while consumers are left paying the price. Additionally, the companies have a history of deliberately underpaying royalties on public lands and to private mineral rights owners.
BACKGROUND:
EOG, Occidental, and Devon Energy are among the top leaseholders of public lands oil and gas leases with 4,114 leases covering nearly 1.5 million acres:
- EOG Resources is the 2nd largest public lands leaseholder with 1,667 leases covering 704,048 acres.
- Occidental Petroleum (OXY) is the 3rd largest public lands leaseholder with 1,602 leases covering 454,331 acres.
- Devon Energy is the 6th largest public lands leaseholder with 845 authorized leases covering 326,144 acres.
EOG Resources, Occidental Petroleum, and Devon Energy are making record profits and boosting shareholder dividends and stock buybacks thanks to high commodity prices:
- Occidental Petroleum, EOG Resources and Devon Energy had record cash flow in 2021. In fact, they made nearly $9B in profits that year.
- Occidental Petroleum and Devon Energy explicitly cited high commodity prices as the reason for their eye-popping shareholder returns.
- Occidental Planned $3B in stock buybacks on top of a dividend bump for 2022.
- Devon Energy gave over $1.8B in share buybacks and dividends to shareholders in 2021. The company expects to double its "outsized dividend" in 2022 on top of a $1.6B stock buyback authorization.
- EOG Resources gave $2.7B to shareholders in 2021, doubling its dividend during the year. The company also OK'd repurchase of $5B in stock after "refreshing" its buyback authorization. It also gave its CEO a $150,000 raise in 2021, allowing him to rake in $9.8M in total compensation.
EOG Resources, Occidental Petroleum, and Devon Energy each have a history of deliberately underpaying royalties on public lands and to private mineral rights owners:
- EOG Resources has been sued multiple times for failing to pay royalties owed to mineral rights owners.
- Occidental Petroleum has been forced to pay the federal government tens of millions in False Claims Act penalties for dodging royalty payments.
- Devon Energy has paid tens of millions for failing to pay royalties, including a 2021 case requiring the company to pay $28M to Texas royalty owners after six years of dodging their financial obligations.
Read the full Accountable.US report for all the details.
Accountable.US is a nonpartisan watchdog that exposes corruption in public life and holds government officials and corporate special interests accountable by bringing their influence and misconduct to light. In doing so, we make way for policies that advance the interests of all Americans, not just the rich and powerful.
LATEST NEWS
Trump Nomination of Crypto Banker Howard Lutnick Another 'Win for the Billionaire Class'
"Just another reminder that Trump serves the oligarchy, not the people," said former Labor Secretary Robert Reich.
Nov 20, 2024
Consumer advocacy group Public Citizen feigned surprise on Wednesday over President-elect Donald Trump's nomination of Wall Street CEO Howard Lutnick to lead the U.S. Department of Commerce.
"Oh look, another billionaire has made his way into Trump's Cabinet," said the group, noting Lutnick is also a promoter of cryptocurrency and a Trump megadonor. "The conflicts of interest are almost too many to count."
Among the conflicts are Lutnick's involvement in the crypto industry and federal and state cases against Cantor Fitzgerald.
In addition to running the Wall Street firm, Lutnick is a banker for the "stablecoin" company Tether; purchasers receive a Tether token for $1, with the proceeds invested in reserves and Treasury bonds managed by Lutnick's Cantor Fitzgerald.
As Public Citizen noted, New York Attorney General Letitia James found in 2021 that Tether and another crypto firm "recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines."
The company is also reportedly under federal investigation over alleged criminal violations of anti-money laundering rules and sanctions.
Public Citizen also said that while co-chairing Trump's transition team, Lutnick "may also have helped arrange a meeting between Trump and Coinbase chief Brian Armstrong," who "helped steer a record amount of political spending from the crypto industry into the 2024 election."
Crypto firms poured over $119 million into directly influencing the 2024 federal elections, Public Citizen found in August, making the industry's spending second only to that of fossil fuel companies.
As Politico reported in October, even other members of Trump's inner circle have accused Lutnick of using his transition team co-chair position to take meetings on Capitol Hill and "talk about matters impacting his investment firm, Cantor Fitzgerald—including high-stakes regulatory matters involving its cryptocurrency business."
Lutnick's nomination, said former Labor Secretary Robert Reich, serves as a reminder that "Trump serves the oligarchy, not the people."
"Debris from crypto's political spending tsunami will jam up more halls in Washington than ever before if Lutnick is confirmed as secretary of commerce," said Bartlett Naylor, a financial policy advocate for Public Citizen. "The president-elect, who once correctly called bitcoin a scam, now surrounds himself with even more crypto enablers. Cryptocurrency won't return good jobs to the heartland or reduce food prices; it will only thin the wallets of those vulnerable to a now government-legitimized con."
Government watchdog Accountable.US pointed to more than $19 million in political donations Lutnick has made since 2009, nearly all of which went to GOP candidates and political action committees. He contributed $6 million to Trump's super PAC, Make America Great Again, Inc., in 2024 alone.
"Howard Lutnick's questionable qualifications to lead the Department of Commerce begin and end with his loyalty to the president-elect," said Accountable.US executive director Tony Carrk.
Tether isn't the only Lutnick-linked company that's been investigated for wrongdoing. The Securities and Exchange Commission fined Cantor Fitzgerald $1.4 million in 2023, saying the company repeatedly failed "to identify and report customers who qualified as large traders." The company also agreed to pay $16 million in fines to the SEC and the Commodity Futures Trading Commission in 2022 for using unauthorized communication channels.
Should Lutnick be confirmed as commerce secretary, Accountable.US said a "major regulatory conflict" could arise due to a dispute between the BGC Group, a spin-off brokerage of Cantor Fitzegerald, and futures and commodities exchange CME Group, over a competing trading platform BGC Group is launching.
"Lutnick's company's violations resulting in financial regulator fines and millions in right-wing political donations shows that political devotion takes precedence over actual experience to do the job in Trump's Cabinet," said Carrk.
Trump campaigned as a champion of working people as he railed against high grocery prices. As The New Republicreported on Tuesday, Lutnick has showered Trump's plan for across-the-board tariffs with effusive praise—even as leading economists warn the plan to impose tariffs on foreign imports will pass higher costs onto consumers, not foreign countries.
"In September, Lutnick told CNBC that 'tariffs are an amazing tool for the president to use—we need to protect the American worker,'" wrote Edith Olmsted. "Lutnick also gushed about tariffs at Trump's fascistic rally in Madison Square Garden last month, claiming that America was better off 100 years ago, when it had 'no income tax and all we had was tariffs.' His high praise for tariffs came even as he admitted Americans would face higher prices as a direct result."
Lutnick's nomination, said Sen. Elizabeth Warren (D-Mass.), "is a win for the billionaire class at the expense of working people."
"The across-the-board tariff plan," she said, "is a distraction from the MAGA scam to extend tax giveaways for giant corporations and billionaires like Howard Lutnick."
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'Inconceivable': US Condemned Over Decision to Provide Landmines to Ukraine
"Ukraine already faces years of demining due to Russian landmine use," said the International Campaign to Ban Landmines. "Adding to this contamination would impact its own population for decades to come."
Nov 20, 2024
The Biden administration's decision Tuesday to reverse its own policy and greenlight the provision of anti-personnel landmines to Ukraine drew international condemnation, with human rights organizations warning that generations of civilians will bear the costs of the move.
The International Campaign to Ban Landmines (ICBL), which won the Nobel Peace Prize in 1997 for its work against the weapons, said Wednesday that it "strongly condemns" the Biden administration's move and noted that Ukraine is prohibited from acquiring or using landmines under the terms of the Convention on the Prohibition of the Use, Stockpiling, Production, and Transfer of Anti-Personnel Mines and on Their Destruction.
Neither the United States nor Russia—which has used landmines repeatedly against Ukraine since its full-scale invasion in February 2022—are signatories to the treaty. But in 2022, the Biden administration barred the transfer and U.S. of American-made landmines except in defense of South Korea, reversing a Trump-era policy that weakened restrictions on the weapons.
"The U.S. must respect its own policy prohibiting landmine transfers," ICBL said Wednesday. "As the world's largest donor to mine clearance, spending millions annually to protect civilians, it's inconceivable the U.S. would facilitate laying new mines."
"Ukraine has repeatedly affirmed its commitment to the Mine Ban Treaty since 2022. ICBL urges Ukrainian officials to demonstrate this commitment by refusing this transfer. International humanitarian law cannot be set aside during conflict," the organization added. "Ukraine already faces years of demining due to Russian landmine use. Adding to this contamination would impact its own population for decades to come."
ICBL implored the administration to reverse its decision, saying that "the protection of civilians cannot be compromised, even in extraordinarily difficult circumstances."
It's unclear when U.S. landmines will be shipped to Ukraine, which is already littered with landmines that, at the current pace, will take an estimated 757 years to remove. An unnamed official toldDefense News that the U.S. landmines would be delivered to Ukraine "soon."
On Wednesday, the Biden administration announced a fresh package of military assistance for Ukraine that includes mortar rounds, artillery ammunition, and "demolitions equipment and munitions." The package was announced hours after Ukraine fired American-made long-range missiles deep into Russian territory for the first time in the wake of U.S. President Joe Biden decision to allow Ukrainian forces to do so.
"Anti-personnel landmines are inherently indiscriminate weapons that maim and kill civilians long after conflicts end and shouldn't have a place in the arsenal of any country."
Speaking to reporters Wednesday, U.S. Defense Secretary Lloyd Austin said that Ukraine has "asked for" anti-personnel landmines.
"So I think it's a good idea," Austin said of the administration's decision to roll back its 2022 policy.
Ben Linden, advocacy director for Europe and Central Asia for Amnesty International USA, expressed strong disagreement, saying in a statement that the decision was "reckless" and "a deeply disappointing setback for a president who once agreed that landmines put more civilians at increased risk of harm."
"It is devastating, and frankly shocking, that President Biden made such a consequential and dangerous decision just before his public service legacy is sealed for the history books," said Linden. "Anti-personnel landmines are inherently indiscriminate weapons that maim and kill civilians long after conflicts end and shouldn't have a place in the arsenal of any country. Even the 'nonpersistent' mines are a threat to civilians. In the face of continued Russian aggression, including the killing and injuring of Ukrainian children, landmines are not the answer to keep civilians safe."
News of the Biden administration's decision came shortly before ICBL issued its annual report on anti-personnel landmines and their impacts worldwide.
The 142-page report found that "there were at least 5,757 new casualties from landmines and explosive remnants of war in 53 countries and two other areas in 2023, including 1,983 deaths."
"Civilians made up 84% of all recorded casualties in 2023," the report noted, "while children were 37% of casualties when the age was recorded."
Mark Hiznay, associate arms director at Human Rights Watch and an editor of the report, said in a statement that "new use of anti-personnel mines by countries that have not joined" the international mine ban convention "threatens both civilian lives and the effectiveness of this lifesaving treaty."
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'Betsy DeVos 2.0': Trump Picks WWE Billionaire Linda McMahon to Lead Education Department
"During his first term, Donald Trump appointed Betsy DeVos to undermine and ultimately privatize public schools through vouchers," said the president of the National Education Association. "Now, he and Linda McMahon are back at it."
Nov 20, 2024
U.S. President-elect Donald Trump announced late Tuesday that he intends to nominate Linda McMahon, the billionaire former CEO of World Wrestling Entertainment, to lead the Department of Education, a key agency that Republicans—including Trump and the authors of Project 2025—have said they want to abolish.
McMahon served as head of the Small Business Administration during Trump's first White House term and later chaired both America First Action—a pro-Trump super PAC—and the America First Policy Institute, a far-right think tank that has expressed support for cutting federal education funding and expanding school privatization.
Trump touted McMahon's work to expand school "choice"—a euphemism for taxpayer-funded private school vouchers—and said she would continue those efforts on a national scale as head of the Education Department.
"We will send Education BACK TO THE STATES, and Linda will spearhead that effort," Trump said in a statement posted to his social media platform, Truth Social. (McMahon is listed as an independent director of Trump Media & Technology Group, which runs Truth Social.)
The National Education Association (NEA), a union that represents millions of teachers across the U.S., said in response to the president-elect's announcement that McMahon is "grossly unqualified" to lead the Education Department, noting that she has "lied about having a degree in education," presided over an organization "with a history of shady labor practices," and "pushed for an extreme agenda that would harm students, defund public schools, and privatize public schools through voucher schemes."
"During his first term, Donald Trump appointed Betsy DeVos to undermine and ultimately privatize public schools through vouchers," NEA president Becky Pringle said in a statement. "Now, he and Linda McMahon are back at it with their extreme Project 2025 proposal to eliminate the Department of Education, steal resources for our most vulnerable students, increase class sizes, cut job training programs, make higher education more expensive and out of reach for middle-class families, take away special education services for disabled students, and put student civil rights protections at risk."
"The Department of Education plays such a critical role in the success of each and every student in this country," Pringle continued. "The Senate must stand up for our students and reject Donald Trump's unqualified nominee, Linda McMahon. Our students and our nation deserve so much better than Betsy DeVos 2.0."
Randi Weingarten, president of the American Federation of Teachers, took a more diplomatic approach, saying in a statement that "we look forward to learning more about" McMahon and that, if she's confirmed, "we will reach out to her as we did with Betsy DeVos at the beginning of her tenure."
"While we expect that we will disagree with Linda McMahon on many issues, our devotion to kids requires us to work together on policies that can improve the lives of students, their families, their educators, and their communities," Weingarten added.
McMahon is one of several billionaires Trump has selected for major posts in his incoming administration, which is teeming with conflicts of interest. During Trump's first term, McMahon and her husband, Vince McMahon, made at least $100 million from dividends, investment interest, and stock and bond sales.
The Guardiannoted Tuesday that "in October, [Linda] McMahon was named in a new lawsuit involving WWE."
"The suit alleges that she and other leaders of the company allowed the sexual abuse of young boys at the hands of a ringside announcer, former WWE ring crew chief Melvin Phillips Jr," the newspaper reported. "The complaint specifically alleges that the McMahons knew about the abuse and failed to stop it."
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