“Black gold” and “black money”

Posted on September 5, 2013


(Not translated by M.L.) As you know, oil is black, and sometimes oil companies need to pay governments “black” money to get out the “black gold” from the ground. The 2010 Dodd-Frank Financial Reform and Protection Act’s Section 1504 require that publicly traded US oil and gas companies must disclose payments made to foreign governments. US oil and gas firms legally challenged the requirement outlined as they believed it would give foreign competitors not subject to it an unfair competitive advantage. The US District Court for the District of Columbia agreed and ruled in their favor. The US Securities and Exchange Commission, SEC, the one that controls that companies follow the roles, has now decided not to appeal the decision.

“The court remanded the matter for further SEC proceedings, which the commission will undertake informed by the court’s decision,” a spokesman for SEC said and an American Petroleum Institute spokesman said on September 4 that “US companies are leading the way to increase transparency, and we look forward to working with the SEC to rewrite the rule in a way that recognizes these existing efforts without harming the competitiveness of American businesses.”

This is an indicator that US oil and gas firms even in the future think that they will be dependent on drilling and producing oil outside the US and that they need to make payments to foreign governments.

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