Executives of Failed U.S. Drillers Got $199 Million in Cash by Josyana Joshua, August 12, 2021, Bloomberg
The oil and gas explorers they managed went under, but they walked out with a combined $199 million in cash.
That’s how much 76 executives behind the 25 largest U.S. oil and gas bankruptcies between 2018 and 2020 received in cash bonuses, retention payments and severance, advocacy group Public Citizen said in a report Thursday. Meanwhile, more than 10,000 of their employees lost their jobs, the group said.
The shale boom that made the U.S. the world’s largest oil producer was bankrolled by hundreds of billions of dollars in debt. Two market crashes since 2014 have led scores of producers to go under.
“The fossil fuel industry has been a poster child for ill-conceived corporate welfare for decades, benefiting from numerous subsidies, tax breaks and regulatory favors,” Robert Weissman, president of Public Citizen, said in a statement.
… Oil and gas executives got an average $2.6 million cash payout each following bankruptcy, according to the report. The study excluded other forms of compensation.
The report also pointed out that the companies that were analyzed purchased only $281 million in bonds to cover environmental losses, less than 20% of their own estimated environmental liabilities.
The group is calling on U.S. President Joe Biden and lawmakers to eliminate subsidies to the oil and gas industry, update leasing laws and ensure taxpayers aren’t saddled with the cost of well cleanups.
(Adds group’s call for legislation change in last paragraph)
Refer also to:
“Bankruptcy for Profit.” How bankruptcy lets companies walk from clean up. CAPP/AER/OWA’s Plan all along? “They’re just looting what remains and leaving us with the financial and environmental fallout.”
Petromasculinity: Diamond Offshore Drilling got $9.7 million tax bailout, filed for bankruptcy protection, paid $9.7 million in executive bonuses, laid off nearly a quarter of its workforce. Seadrill Limited got $3 million bailout, did nothing to stem layoffs or bankruptcy. Superior Energy Services announced $115 million in payroll cuts, layoffs, furloughs; got $30.5 million tax bailout, paid $44 million to top execs, filed for bankruptcy
Bankruptcy plan to let Cenovus/Husky “legally” escape clean-up, aided by taxpayer-funded courts? Cenovus (Encana spawn), buys Husky for $23.6 Billion, “including debt” (financed by Canada Pension Plan and AIMCo?); Will kill jobs Kenney promised would increase when he gave industry $Billions in tax breaks, mega corporate welfare, tax super holiday and citizen-financed propaganda (war room and Steve Allen’s witch hunt).