Sunday’s News Shows, Brought To You By Big Oil

Gold Bricks: An Interesting Backdrop For The American Petroleum Institute Sign

While Big Oil is always active during an election season, this year news and radio shows have been particularly shameless about airing back-to-back commercials propounding the virtues of oil and gas. Just yesterday, Sunday’s lineup featured a parade of ads from the American Petroleum Institute — the Washington lobby for Big Oil — hailing oil and gas companies for paying for health care and schools and saying they have created 9.2 million jobs nationwide. It did not offer any independent sourcing to back up those claims, but I am guessing it’s safe to assume we can trust them?

If an oil company is building a school, frankly, I would like to know about it. I am still waiting to hear back on the name and location of these schools. Or even just one school.

Sunday is the major news networks’ time to roll out their TV version of The New York Times Sunday section. On “This Week With George Stephanopoulos,” a commercial break featured the American Petroleum Institute, Chevron and British Petroleum — in a row.

Pandering To Oil And Gas

While it’s no secret news shows are increasingly desperate for cash, this gives the impression that some shows are literally for sale. If that’s true, it is a bad time for it, as this country is in dire need of objective, non-ad-fueled journalism. The Fourth Estate is the last barrier against obfuscation and corruption and, lately, it is not doing the greatest job of keeping its head above the fray.

If news outlets don’t take seriously the need for diverse messaging not only in the content of their programming, but also when it comes to their commercials, it isn’t that different from narrowing the conversation to hard Orwellian limits. Here, an example of what really happens during an American Petroleum Institute commercial shoot that purports to feature “real” Americans.

So, onto the commercials themselves (which were hilarious if you could ignore for one second that a single member of the viewing public might actually believe them).

A tip to the Big Oil marketing agencies: if you are going to make a misleading ad, try to not make it so hysterical.

Surreal Oil And Gas Ads

Among Sunday’s procession, the American Petroleum Institute managed to look the least ridiculous (which is kind of like complimenting someone for being the world’s tallest midget), while Chevron’s ad featured a young blonde woman, supposedly a Chevron employee, making intense statements about how “proud” she was of the company for investing in American concrete and American steel (a little too weird).

The BP commercial, however, took the cake…Continue Reading

Oil and Gas Politics: Just The Nonpartisan Facts

I’ve been writing a series for Fortune in recent weeks tackling questions like, if the U.S. is now selling more petroleum products than it is buying for the first time in more than six decades, why is most of the country paying around $4 a gallon for gas? And if 30% of U.S. oil is drilled from federally owned lands and territories (read: areas owned by us, the taxpayers) why are we not being paid competitive rates for them by the oil companies? 

With the Senate recently voting down a measure to eliminate billions of subsidies for Big Oil, for those not looking to attack either Republicans or Democrats, the 1% or the 99% – just those operating on common sense – it should raise some questions.

Between 2007 and 2010, more than 70% of the increase in U.S. oil drilling took place on federal territories, representing 3.5 million barrels a day, according to the nonpartisan Congressional Research Service. Since then, oil drilling in the U.S. has climbed higher, topping 6 million barrels a day  this spring for the first time since 1999.

The appeal of drilling in the U.S. has grown in recent years, as oil companies develop new technologies to capture energy resources locked in North America that were previously seen as out of reach. Big Oil also has grown wary of the legal and financial uncertainties that often plague their drilling activities in more exotic and restive regions, such as Venezuela and Nigeria, North Africa and the Persian Gulf.

Bottom line: drillers see America as the promised land compared with the dreary alternatives, because the U.S. is by far a safer and stabler place to do business.

Oil Still Fetches 1987 Rates

Yet Americans might be shocked to learn how much the oil companies are actually paying for the privilege to drill on taxpayer-owned territories. As of this writing, the starting bid for leases on parcels of land that allow an oil company to drill for 10 years is $2 an acre. Yes, the prices can get up into the thousands during the bidding process, but more often the land is sold for next to nothing.

And it’s been that way since 1987.

It is as though oil hasn’t budged from $20, the price per barrel the same year Bon Jovi released “Slippery When Wet” (no pun intended regarding the use of ‘slippery,’ however apropos.)Continue Reading