Heating oil scam comes at a bad time for oil industry

| No Comments | No TrackBacks

The not-so-sterling reputation of the oil industry took another hit Friday, amid news reports that the FBI had accused two heating oil delivery companies in New York City of charging customers for more oil than was actually delivered.

Now the companies involved, Mystic Tank Lines and T&S Trucking Corporation, are small potatoes, and few people outside the New York area will likely pay any attention. However, against the backdrop of a political climate that features Congress grilling energy company executives, constant talk of price-gouging legislation and increased taxes on excess oil company profits, the industry didn't need another black eye.

The fact that the operation was sophisticated enough to use doctored meters to deliver just 3% less oil than had been contracted for -- a small enough amount that would likely go unnoticed by the purchaser -- could lead publicity-hungry politicians to question what other meters might be just a bit off.

Meanwhile, the government has seized 34 trucks belonging to Mystic, so homeonwers will be getting their next deliveries from another company, or, who knows -- the US government itself.

No TrackBacks

TrackBack URL: http://www.platts.com/mt/mt-tb.cgi/844

Leave a comment

About this Entry

This entry was written by Dave Marino and was published on July 20, 2007 11:42 AM ET.

Previous entry: The secret's out -- Cheney task force met with oil and gas groups

Next entry: Some data pointing to weaker demand

Find recent content on the main index or look in the archives to find all content.

Twitter Updates

Archives

September 2011

Sun Mon Tue Wed Thu Fri Sat
        1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30