The first section of this website will summarize six oil industry crimes and cover-ups. The subsequent pages will supply the detail facts as of April 2023 that support these claims. This site contains 21 pages. We have written to the Inspector General, and both a Democrat and Republican on the House Oversight Committee, but no response.
Summary of Lies and Cover-Ups
- ARCO volumetrically over billed all their customers in the states of Oregon and Washington in 1989.The other oil companies probably had the same billing procedures at that time. One year after I told ARCO about their crime, they covered it up by not allowing anyone to extract the billed quantity from the company database.
- ARCO knowingly placed a product into service that would eat through metal and contaminate the groundwater.
- The oil industry misleads the public about the security and reliability of oil reserves into the future. The truth is the world is already on the road of Hell. They want you to believe you have until 2050 to be carbon neutral. AOC estimates until 2030. Due to the Russia invasion of the Ukraine, we have less than 5 years before the world realizes we are at peak oil production.
- Keep in mind that the largest CPA firm in America that audits the oil industry has settled ( $100 million dollars) out of court in 2022 for helping their employees cheat to pass the CPA exam.
- Today, we have many criminal people accepting funds from the Federal Government to save the world from climate change by capturing the carbon and keeping it out of the atmosphere forever. This is the fox guarding the hen house. Humanity has failed at this endeavor for decades. In other words, this is a waste of taxpayer dollars.
- National security is at issue. China is still building plants that use coal (18 in 2022). Their view is that energy security is national security. China does not trust the carbon capture and storage prospects. They, like many others in the world, believe this endeavor is a waste of taxpayer dollars.
Crime And Cover-Up Number 1
On October 28,2022, I signed under oath in the presence of the notary at City Hall in Prescott, Arizona my following claims of crimes and cover up by my oil company employer (ARCO).
Here is the one page statement:
How ARCO Volumetrically Over Charged Service Stations
This letter has the intention to state how ARCO over billed all their service stations in the states of Oregon and Washington and how they lied to these customers.
Since liquids expand and contract by temperature, the general rule was all transactions had to be adjusted by a meter factor and a temperature factor. Three states (California, Nevada, and Arizona) were adjusted to 60 degrees. However, the other two states (Oregon and Washington) were billed on a gross volumes and not net volumes. These service stations were told that on a yearly basis, the colder temperatures would benefit them financially. This might have been true when this billing procedure was initiated, but due to climate change, this was not true in the late 1980’s. I did an extract from the Company database for the two states. Every single service station on a total year basis paid for higher volumes versus temperature corrected volumes to 60 degrees.
I reviewed my analysis with the two managers above me and we all three met the VP of Finance for the Refining and Marketing Division. After that meeting, I was instructed to meet alone behind closed doors with the Company lawyer.
This lawyer told me that no Company is squeaky clean and that we have to keep consistent procedures. Additionally, he gave me an ink pad and a stamp that read “privileged”. I was asked to stamp all my analytical work that was subject to this billing issue.
Approximately one year later, our company covered up this crime. The billed quantity was no longer available to extract from the ARCO database. This prevented me to see if ARCO changed their billing practices for the states of Oregon or Washington. It also prevented any other employee to discover this crime.
Four reasons I believe these crimes and cover-ups still exist today:
They changed my name from Peter to Xxxxxxx.
The billed quantity was never again available for extract.
The ARCO lawyer told me that no company is squeaky clean.
The ARCO lawyer told me our billing procedures must be consistent. Also, this infers that not only does ARCO need to be consistent but ARCO needs to be consistent with the industry.
This document only addresses the five states I audited. These issues might involve other states and other countries.
People who need to be asked questions are:
Oil industry personnel.
Since the largest CPA firm in America settled out of court for 100 million dollars last year for helping their employees cheat to pass the CPA exam, what type of ethics are the colleges teaching the future leaders of our industries/institutions?
This is the end of the one page statement.
On November 17,2022 I sent this same information above to the US Inspector General and completed their form on their internet website. In addition, their website asked what crime(s) have been committed. My answer was misrepresentation and gross negligence. Only if we go to trial will we know if collusion is another crime.
Another question on their whistleblower website is: What do you want us to do?
My response was:
To the major oil companies:
How did you bill your service stations in Oregon and Washington in 1988?
How do you bill your service stations in Oregon and Washington today?
If there was a change, why and when?
To the auditors:
Why did you not catch this crime?
To the elite Colleges and Universities:
What ethics do you teach the future leaders of our industries?
Do I expect any results? No.
Why not? The states of Oregon and Washington must have given their green light to these billing procedures that are different from the states of California, Nevada, and Arizona. If the states are involved, there is the possibility the Federal Government knows about this issue.
Why did you not blow the whistle in 1990 when ARCO covered up their crime by removing the billed quantity from their database?
- This is not the first time that ARCO managers changed my name from Peter to Xxxxxxx.
- Since my father was a parole officer, he brought me to Walpole State Prison for the best education in America. Since this prison became the murder capital of the American prison system, they changed the name from Walpole to Cedar Junction. I was taught not to rat on someone(s) unless I was ready to die. Now that I am 75, I am ready to die.
- I was never recognized by the military for being the only American soldier to capture a Viet Cong village all by myself. I did this in 1969. One year after the My Lai massacre. The military does not want the civilians to know the truth about combat.
- At Fort Benning, a sergeant attempted to murder me twice in one day. The details are in my book “How To Stop World War 3 And Start The Green New Deal” on Amazon (35 pages). These murders still take place today. Search the internet for Fort Hood murders.
- Russia Mafia. The FBI produced a video explaining the Russian Mafia involvement in the service station business on the west coast of America. In 1990, I was too young to rat on the Russian Mafia and the oil industry.
- Recent murders in Russia. The CEO of LUKOIL (second largest oil company in Russia) fell to his death from his sixth story hospital bedroom. Several similar deaths have occurred to high-level oil executives in the last year. The appointed Russian leader of Kherson ( Ukraine ) met his death from an automobile accident on the last day of Russian occupation. On this same day, there was no electric power in that city to pump gasoline from a service station into an automobile.
- My personal life experiences have taught me to not trust my fellow man.
- Yes, I will trust you and buy you a drink, but I will not trust you when $200 billion dollars are involved. Let me explain my calculations. BP bought ARCO in 1999. In 2011, BP created the Deepwater Horizon oil spill in the Gulf of Mexico. BP lied and covered up their responsibility for a few years. Eventually, BP pleaded gross negligence and set the American record for fines and penalties at $25 billion dollars. My claim is that the whole oil industry has committed gross negligence for at least 34 years and maybe up to 70 years. Add the CPA audit companies into these calculations, and the lack of the elite colleges/universities to teach proper moral/ethical responsibilities as future leaders of American industries and institutions.
In conclusion, I hope you will fund my project to hire a lawyer to bring the truth to the American public. I personally will not touch these funds. They will be sent directly to the law firm that takes this case. These cases will be done in segments. The first segment will be against the oil industry only. We will ask the oil companies who do business in the states of Oregon or Washington:
How did they bill their service stations and the Government in 1988 (gross or net)?
How do you bill your service stations and the Government today (gross or net)?
If there has been a change, when and why?
Based on the answers to these questions, I will drop the issue or pursue it to other states/countries, and the CPA audit firms, and the elite colleges.
If there are funds left over from the “go fund me” donations or if any settlement funds are put into my possession, I will use those funds to start the “green new deal” by building my patented golf course (4,726,589). We wish to demonstrate that the difference between humans and animals is the degree of adaptability. We need to change the narrative from fighting climate change to adapting to climate change. My patent above tells you how to play a regulation game of golf on 20 percent of the land, water no grass, fertilize no grass, or mow any grass.
Today, our youth are focused on fighting/protesting which leads to sadness and hopelessness.
We need to change their education to learning how to do more with less.
Please, help our team make this change by donating to this fundraiser.
Crime and Cover-Up Number 2 MTBE
In 1985, ARCO divested their East Coast operations and their noncore businesses. At this time, I was in the Planning Department of the Refining and Marketing Division. We were told that our Department of 100 employees was to be reduced to 10 employees.
A month later, I was told to report back to the Accounting Department. Besides the 10 employees that remained in the Planning Department, another 10 were transferred to other organizations. The remaining 80 employees were terminated.
I was sent to the Inventory Control Department. Our first mission was to transition from an awkward accounting system to a state of the art system. When I arrived into this Department our book inventories were twice our storage capacity. After two years our new system was in place and we had our inventories in control.
In 1987, my boss and I began to conduct audits at all our storage facilities. From 1987 to 1998, my boss and I were the only oil industry employees to audit the GATX and SPPL storage facilities on the West Coast of America.
This is probably why Rex Tillerson testified under oath as Secretary of State regarding a question on “climate change”. His response was : “Scientists are not good at measuring things.” The real truth here is that all the oil companies, except ARCO, ever attempted to understand why they gained or lost product at third party storage terminals. They never involved themselves in the results of third party measurements. If you want more details on why there were gains or losses in oil inventories, you can read my 35 page book on Amazon that is titled “How To Stop World War 3 And Start The Green New Deal.”
Our reason to conduct audits was to keep our inventory gains or losses within one quarter of one percent per month, per product, for all storage facilities. Thus, ARCO could say under oath that if we were leaking product we would have inventory losses and if we were overcharging customers we would be having gains. All of these gains and losses were based on temperature adjusted volumes to the industry standard of 60 degrees.
In 1992, laws were passed that required the oil industry to clean pollution in the air by adding something to gasoline that would reduce emissions. ARCO added two products to their gasoline. One choice was ethanol and the other was MTBE. Prior to the 1992 Clean Air Act amendment, MTBE was used in small quantities in 1979 as a replacement for the removal of lead from gasoline.
Since both these products were caustic, SPPL refused to transfer either product via their pipeline system. Thus, ARCO purchased the MTBE from the Lyondell facility in Houston, Texas and shipped it to a nearby storage site owned by GATX in Galena Park, Texas. Before any product was removed from storage via rail cars our inventories dropped by 5,000 barrels or 220,000 gallons.
Since I started my career at the Lyondell facility in 1976 (previously owned by ARCO), I was sent to this facility for a one-week audit to find the cause of this loss. As I drove into the Galena Park facility, I saw the answer for for the loss. There was one pipeline that was one hundred yards long that was above ground and entirely rusted. All the other pipelines had zero rust.
This told me that the cause for our loss was not a leak, but must be the factor used to correct our product to 60 degrees. I parked my rental car and entered the GATX office. Since I was expected, the person who did the volume balance at that facility said yes, I used a factor for chemicals, but should have used a factor for gasoline. I will reduce your purchase volumes by 210,000 gallons and your loss is zero.
In ten minutes, I reduced our companies cost by $200,000 and put to rest the issue of leakage over a four-month period while our product sat in storage tanks at this facility. I directed GATX personnel to look for leaks at a rusty pipeline that I examined. Instead of following the yellow brick road, they only needed to follow the rusty pipeline to find any leaks.
It was great to have another successful audit but, what was disturbing to my eyes was how could the oil industry put into play a product that SPPL refused to transport via their pipeline system. The oil industry CEO’s must have known or should have known that eventually this product would leak through the underground storage tanks at the service stations.
Sure enough, service station storage tanks were leaking and MTBE was measured in our underground water supplies within a few short years. In summary, let me quote a report from Reuters on January 19, 2007: “Lyondell Chemical CO., the world’s largest maker of the gasoline additive MTBE, (under fire as a suspected carcinogen), on Tuesday said it was prepared to cease production of the chemical, which is blended into car fuel to cut emissions from the tailpipe”.
MTBE (methyl tertiary butyl ether) has seeped into water supplies from leaky storage tanks in all 50 states, making some water undrinkable and prompting many states to ban the substance.
“We’re in preparation to make a conversion where we won’t make MTBE anymore in this country,” Lyondell Chief Executive Dan Smith told the Reuters Energy Summit. “We’re prepared. If we have to go that way, we will,” he said.
“Removing MTBE from gasoline is the equivalent of shutting down two average U.S. refineries because it shrinks the volume of gasoline supply,” Smith said.
“MTBE … represented a little more than 3 percent of gasoline supply in this country a few years ago,” Smith said. “We’re down to about half of that in a world where we’re short of refining and we have taken a refinery away on purpose.”
U.S. refiners began adding MTBE to gasoline in 1979 as an anti-knock agent that replaced lead, but its use soared in 1995 to comply with a federal law to make cleaner burning fuel.
Now oil companies face lawsuits over the additive. They claim they should not be sued for making a defective product because the U.S. Environmental Protection Agency required cleaner burning additives to reduce air pollution, and MTBE was the popular choice at the time.
Product liability was the basis for a landmark case in California in 2002, where a jury found several oil companies liable for making a defective product. The companies settled for $69 million before the jury could award damages.
“It’s not a product problem, it’s not a health problem, it’s a problem that we don’t maintain the tankage in this country like we do in the rest of the world, despite Federal regulation that had ten years to take effect on leaking storage tanks.” Smith said.
He said that “Once MTBE is pulled from tanks, other remaining chemicals that are carcinogens will seep into the ground from leaky tanks.”
We run from an apparent problem but don’t fix the root cause and in doing so, we short ourselves on supply,” he said. “It doesn’t make a lot of sense.”
Please Notice The Trend
- Look at net volumes not billed volumes.
- Look up in the sky for clean air, but don’t look below the ground for polluted water
Oil Reserves Crime Number Three
Just like the MTBE and billing issue, the oil industry wants you to look at published worldwide oil reserves versus the real important number. When does the world reach peak oil production capacity? The oil industry wants you to become complacent and believe they have a 60-year supply. This gives the oil industry the justification to ask their governments to help finance them to make a transition to another energy source.
Where should society look to find the truth about our worldwide crude oil reserves?
- The oil minister of the United Arab Emirates constantly says he is concerned about having enough supply for the world in 2024.
- On February 28, 2023, BP formally announced the ending of its 70-year old Statistical Review Of World Energy. They fear another lawsuit for lying to the public about worldwide crude oil reserves.
- A recent report by the House Oversight Committee accuses oil companies of ‘lying’ about climate actions. In the memo released on December 9, 2022, the committee said “The internal company documents it had received via subpoena” demonstrate how the fossil fuel industry ‘greenwashed’ its public image with promises and actions that oil executives knew would not meaningfully reduce emissions, even as the industry moved aggressively to lock in continued fossil fuel production for decades to come-actions that could doom global efforts to prevent catastrophic climate change.
Not to be out done by the oil industry lies, the U.K.prime minister, Boris Johnson hosted the COP26 climate conference in Glasglow, Scotland in late 2021. At this conference, he pledged to the world that the U.K. would be net zero carbon by 2050. His goal was to be accomplished by nuclear energy and windmills in the North Sea. Fourteen months later, the U.K. government approved the development of its first new coal mine in decades.
What could be behind these lies? A recent article by John Stossel quotes physicist Mark Mills who explains some of the reasons we are not really making a transition from fossil fuels.
Politicians praise electric cars. If everyone buys them, they say, solar and wind power will replace our need for oil. But that’s absurd.
Here is the rest of my “inconvenient facts” about electric cars.
“The future of the auto industry is electric,” says President Joe Biden. He assumes a vast improvement in batteries. Better batteries are crucial because both power plants and cars need to store lots of energy. “Batteries leak, and they don’t hold a lot.” physicist Mark Mills says.
Mills thinks electric cars are great but explains “oil begins with a huge advantage: 5,000% more energy in it per pound. Electric car batteries weigh 1,000 pounds. Those 1,000 pounds replace just 80 pounds of gasoline.”
But future batteries will be better, John Stossel points out.
“Engineers are really good at making things better,” Mills responds. “But they cannot make them better than the laws of physics permit.”
“Miracle batteries powerful enough to replace fossil fuels are a fantasy.”
“Because mother-nature is not nice to humans,” explains Mills. “We store energy for when it’s cold or really hot. People who imagine an energy transition want to build windmills and solar panels and store all that energy in batteries. But if you do the arithmetic, you find you’d need to build about a hundred trillion dollars’ worth of batteries to store the same amount of batteries to store the same amount of energy that Europe has in storage now for this winter. It would take the world’s battery factories 400 years to manufacture that many batteries.”
“Politicians don’t mention that when they promise every car will be electric. They also don’t mention that the electric grid is limited.
Even if you cover the entire continent of the United States with solar panels, you wouldn’t supply half of America’s electricity,” Mills points out.
Even if you added “Washington Monument-sized wind turbines spread over an area six times greater than the state of New York, that wouldn’t be enough.”
This is just math and physics. It’s amazing supposedly responsible people promote impossible fantasies.
I hope this conversation between John Stossel and Mark Mills helps to explain why the U.K. and the oil industry are not participating in the world of fantasies.
After preparing the financial statements for two years at the Lyondell Plant in Houston, Texas, I moved to Los Angeles, California at ARCO headquarters to prepare the financial statements of the total corporation from 1978 to 1980. In 1978, the oil industry was mandated to report earnings for solar, coal, oil and gas, and other. My reports to the Department of Energy showed that ARCO’s solar company was unprofitable in 1978 and 1979. The primary reason was that solar panels could only capture 22 percent of the energy from the sun. Today, the capture factor remains at 22 percent. Scientist and engineers have not made any material breakthroughs.
Well, why are oil reserves another lie and how much time to peak oil production?
First, 81% of all oil fields are in decline worldwide.
Second, in the late 1980’s most of the OPEC nations doubled their oil reserves. Why? In this time frame, production rates were allocated based on each countries reserves. Today, production rates are allotted based on production on a chosen month in the last year.
Can you state one example? Yes, Kuwait claims to have approximately 100 billion barrels of crude oil reserves. Yet, their production rate has dropped over the last three years. They cannot even produce their assigned quota. Their highest production rate is 2,800,000 barrels per day or one percent of total reserves. The standard production rate of reserves is three to four percent.
Not only is Kuwait lying, many other oil producing countries are lying as well. If your insights are correct, how much time do we have before the public will know we have reached peak oil production? Two to five years. What are the variables?
On the demand side:
Will China keep their economy open, or go back to zero tolerance for covid-19? If China keeps their economy open, the world expects crude demand to increase by one million barrels per day by the fourth quarter of 2023.
Due to the drought on the Colorado River basin, the Federal Government wants to spend billions of dollars to build plants to pump reclaimed water into the ground and pump back out of the ground. This is a very energy intensive process.
The state of Arizona has a law that home builders must guarantee a one hundred year supply of water to homes they build. Since they can no longer do this, they have two proposals they hope to pass into their budget. One, they want to build a desalination plant in Mexico and pump it back to Arizona via a pipeline. Two, they want to build a pipeline from the Mississippi River to the Colorado River. Both proposals are fantasies and energy intensive.
Russia/Ukraine war: The longer the war, the more oil/energy is needed to build armaments to destroy and rebuild Ukraine at the conclusion of the war.
Will there be a recession and how severe?
On the supply side:
When will a desalination plant be built in Iraq so that this country can pump fresh water into their oil fields to raise production by five million barrels per day?
Why do you say peak production of oil in two to five years?
There are only 17 countries that claim to have more than 10 billion barrels of crude oil reserves. Already, we know that 81% of crude oil fields are in decline. Thus, four of these countries production is already in decline and cannot meet their quotas. They are: Algeria, Nigeria, Kuwait, and Russia.
A recent first time probe under the “doomsday” glacier in Antartica has discovered the bottom of this glacier is similar to the top of this glacier. Both are full of numerous cracks and fissures. This recent discovery confirms an earlier scientific report on this glacier that it could collapse similar to the Larsen A and Larsen B glaciers in Antartica in the next two to five years. Once this event occurs, the oceans are expected to rise by two feet.
I would expect all the environmental activists to protest worldwide to shut down the funding of future oil sands projects in Venezuela and Canada.
Since Iran is aiding the Russians in the Ukraine conflict, Iran will not receive the necessary funding to expand their production. Additionally, the Iranian Government has recently announced that both Ruussia and China are reluctant to further develop any Iranian oil fields.
Qatar has 25 billion barrels of oil, but have no plans to develop this oil at this time. This oil is in their gas field, which is the largest in the world.
Kazakhstan will increase their production by 250,000 barrels this year. In February of 2023, Exxon/Mobil announced that the Russia/Ukraine conflict could shut down their operations in this country and reduce their annual income by $2.5 billion dollars. Since this country has to send their oil into Russia for export, future expansion of production is likely on hold.
Libya needs to have elections to create a government so that investors would be willing to fund any expansion oil field production. At the present time, there are no established election dates.
Recently, China has had flat crude oil production. Two actions are dead giveaways that they are at peak oil production. They have built 18 power plants based on coal in 2022. Additionally, both BP and Shell rejected offers to help develop their shale oil. Not all shale oil is equal. China’s shale oil was created from fresh water and is called lacustrine shale. This particular shale has never been commercialized any place in the world.
Mr. Hess of Hess Oil has recently announced that America will increase their oil production from 12.2 million barrels per day to 13.0 million barrels per day over the next three years and then decline.
Both Saudi Arabia and the U.A.E. have recently announced that they will raise their oil production capacity to 13 million barrels per day and 5 million barrels per day by 2027. Additionally, Saudi Arabia said this is our limit. The U.A.E. will be lucky to reach their 5 million barrel per day goal.
This leaves the world with three remaining countries that have more than 10 billion barrels of oil in reserves. They are Iraq, Brazil, and Guyana. These three remaining countries need to offset the declines in 81% of the producing oil fields today, before they can raise worldwide crude oil production.
If we only have two to five years before we reach peak oil production, is there something else besides solar and wind that can power our vehicles?
What about hydrogen? Today, Toyota sells vehicles with fuel cells. If you purchase one of these vehicles, they will give you a $15,000 credit to use for a three year period to purchase fuel for their newly purchased fuel cell cars.
Please notice the Trend
- Look at net volumes, not billed volumes.
- Look up at the sky for clean air, but do not look below the ground for polluted waters.
- Look at my “fake news” reserves, not my oil production capacity.
Besides preparing financial statements and auditing storage terminals for ARCO, what other responsibilities did I have at ARCO? Since I had already explained to ARCO how they were volumetrically over charging all their service stations in the states of Oregon and Washington, they brought my expertise to other crimes within their company. Can you state some examples? Yes:
One terminal manager hired workers for his terminal and paid these same workers to work on his house with ARCO money.
Another terminal manager billed ARCO about $10,000 a month for the removal of hazardous materials from his facility. There was never any work performed and monies went directly to the terminal manager’s bank account. He was sentenced to ten years in prison.
A truck driver loaded product at our terminal and made a pit stop to unload 1,000 gallons into another vehicle before delivering his product to a service station. A typical truck and trailer holds 8,800 gallons of product. This driver was terminated.
Service station owners know that a government official will bring a one-gallon container to their site to certify the pump meters. It is known that some owners have been caught fooling the inspectors by letting the pumps be honest with anyone who only pumps one gallon, but tampers with the meters for all other volumes.
The FBI produced a short video that explained the Russian Mafia involvement in the service station business. I have kept the volumetric over billing crime a secret since 1989, this crime regarding the Russian Mafia, I must take to my grave.
What did you learn from your terminal audits that would help Rex Tillerson (CEO Exxon/Mobil and Secretary of State) better understand oil measurements and maybe modify his testimony on measurements regarding climate change?
I would tell Mr. Tillerson that I am not an engineer or scientist, but I know how to correct bad measurements as follows:
Sometimes there are pure thefts that you cannot trace and still happen today. Since Ethanol is very caustic, it is moved by railcar. Fortunately, ARCO had only one railcar that was tampered with and 700 gallons were removed from a railcar while in route to the Las Vegas terminal.
IN 1996, the SPPL terminal in Reno changed their operations from loading one compartment at a time to two compartments at a time. Over the next week, this terminal experienced a four percent gain. Immediately, ARCO adjusted all their invoices to the service stations by four percent.
The explanation for this gain is that meters have factors for different pressure levels. In this particular case, loading two compartments at the same time versus just one compartment, the pressure dropped so much that the meter factor should have been adjusted. Additionally, SPPL had a book on site that said the rate of product flow was close to the point of making a reliable measurement impossible. Meters have a range of product flow, low and high, to produce a reliable measurement.
This same issue applies to the flow of product through any size pipeline system (small/large). One day, I walked into the SPPL office in central California and the operations person was speaking loudly, he said and documented into the company log, open a valve to this other spur in their pipeline system. Nothing else was said or written into the SPPL logbook.
He should have said “and change the meter factor to such and such.” Anytime you change the flow rate you should also change the meter factor. When the SPPL manager told me that they always have gains at this end of the pipeline, I told him every time he reduced the pressure, he needed to reduce the meter factor or else he would see gains at his end of the pipeline. His response was, “Yes, we use to have someone work here who understood that.”
The density of the product has the same issue as the flow rate of the product. When ARCO blended into their gasoline, we had all the terminal meters reproved with ethanol flowing through the meters. One time, we experienced a meter-prover, who took proper measurements, but did not properly adjust the meter factors. He was recalled and he corrected his error.
Moving product from a storage tank to a vessel and then unloading this vessel to another storage tank has separate issues. We had losses of 500 barrels sometimes when we moved product from the state of Washington to Long Beach, California.
Vessels have “wedges” that cannot be emptied from a vessel. If you always use a dirty vessel (the wedge volumes never impact any gains or losses). Once I eliminated the ships as the issue, I gathered a years worth of transfers from the vessels to the storage tanks at Long Beach. If a vessel shipment had no losses, I could eliminate those tanks as having bad strappings/measurements. This process left two tanks that always had losses. Since these two tanks were last strapped in the early 1900’s, we asked this storage facility to re-strap these two tanks. They completed this task in January 1998 and this was the cause of the losses. When tanks are altered , they need to be re-strapped.
Some minor issues you will witness is that you get your fair share of transmix and fair share of product that might be redirected by a pressure relief valve at a rack to another storage tank.
Now you too can be an oil measurement expert. Please feel free to forward this information to anyone in the oil business, or audits the oil business, or the country of Nigeria who wants to improve their oil measurement practices.
If you have questions, email me at: p.grigas78@gmail.com
Why are you the only one who stumbled on this billing issue and no one else in the oil industry did?
First of all, it was not a stumble. Since my boss wanted to fire me, I made every effort to make ARCO money. This is why I extracted the billed quantities versus the net quantities in the states of Oregon and Washington. I wanted to see how much money ARCO was losing with this billing procedure. I was surprised that ARCO was financially benefiting from this procedure.
How do you know he wanted to fire you? Every month, we did reconciliations of each storage facility and product. Similar to you balancing your checking account. So one day, we sat down and reviewed my reconciliations for jet fuel at the Sea-Tac airport. Then a month later, we did the same process for jet fuel at the Sea-Tac airport. After we completed the review for the second month at the same airport, my boss told me that I changed some numbers in the second month and that he was going to have to give me a bad review.
When your boss makes an irrational statement like that, you know he hates you. When you balance your checking account, the numbers always change from month to month due to timing issues. The most common reason being: If you write a check today, but it is not cashed and cleared for another week. So, why did your boss hate you? Just like many others who were terminated due to me.
Here’s how it went down: Prior to April 1, 1985, incompetence was no grounds to fire an employee at ARCO. I am in the Planning Department and my boss tosses a 30-page document on my desk. He tells me that Corporate is holding the nine operating companies accountable to make a 10% return on ROCE (Return On Capital Employed). It is three weeks before they announce 90% of our Department will be terminated. Another three weeks later, two Corporate employees come down to our floor in the same building as us and starts to complain to my boss about my analysis on their definition for ROCE. Since I was only ten feet away, I heard the whole conservation. Here is the gist of the conversation: The two Corporate employees said they did not understand why there was an interest expense that was a credit or revenue on the income statement. Thus, they invited many intellectuals for a half hour meeting. ARCO employed 55,000 workers at that time. No one at that meeting brought any new insights to why there was a credit on the income statement that was labeled Capitalized Interest.
Well I did. That is why I told Corporate their definition is wrong and detrimental to my Division by 0.4% and the International Division by 0.8%. Since I passed the CPA exam in 1975 I had to learn and understand FASB 13. Additionally, when I did the Corporate Balance Sheet Fluctuations for two years, I had hands on experience with this accounting issue. To keep my Division and the International Division happy, Corporate decided to transfer the capitalized interest and related accounts from the two operating Divisions to Corporate. Two weeks later, my boss was promoted to be the Vice President of ARCO’s International Division and I was transferred to the Inventory Control Department in the same Division. Obviously, my boss said something like “This is the only guy at ARCO who knows anything about accounting, you need to keep him employed at ARCO.” This is why, I was one of the few saved from the Planning Department. Twenty employees kept their employment and eighty employees were terminated.
Since my new boss had no accounting knowledge or superior math skills, he feared that I might cause his termination similar to what happened to others in Corporate due their lack of accounting knowledge or superior math skills.
This is why I have been damaged and I have a “legal standing” to file a claim against the parties involved.
Now, this is your chance to help me/us fight this corruption. Please donate and spread the word.
My email: p.grigas78@gmail.com
If you want to know more about me, I have a 35-page book on Amazon. The title is How To Stop World War 3 And Start The Green New Deal.