Prohibitions On Market Manipulation and False Information in Subtitle B of the Energy Independence and Security Act of 2007 #535819-00089

Submission Number:
Charles Hamel
Initiative Name:
Prohibitions On Market Manipulation and False Information in Subtitle B of the Energy Independence and Security Act of 2007
William E. Kovacic, Chairman Federal Trade Commission Washington, DC Via E-mail SUBJECT: BP manipulation of West Coast gas/diesel/propane market Dear Chairman Kovacic: The Alaska Oil and Gas Conservation Commission (AOGCC) records confirm that BP Plc has consistently and deliberately reduced Prudhoe Bay crude production significantly below capacity since 2005. Was there concurrence of Prudhoe partners EXXON/CONOCO/ANADARK0? One can understand that reduced Prudhoe crude deliveries to the West Coast refineries succeeded in "tightening" that market, and required supplemental, costly crude imports from Ecuador and elsewhere, causing higher prices to the consumers. Unlike benefits to BP, I have failed to see any gain for the State of Alaska. Rather I believed, since I began to monitor this activity, that there have been resultant and continuing major losses in royalties and taxes to the State treasury. By comparison, those losses have significantly exceeded for the State the lost barrels similarly left in the oil formation below ground during the painful August 2006 shut down... and also languishing to be the final barrels produced from the field in the end. We are reminded of the immediate West Coast gas/diesel/propane price spike upon news of the August shut down. Since I have been unable to locate the terms of the Alaska/Producers' Prudhoe lease agreements, I am in no position to determine BP's fiduciary responsibility to the State, if any, and for BP's requirement to produce to capacity as the facilities permit. In these troubled economic times BP has a moral responsibility to the American consumers to produce all the crude the State's Prudhoe facilities are capable of delivering. I am writing to you today of what appears to be West Coast gas/diesel/propane market manipulation through BP's actions over the past three years. I live in Old Town Alexandria and am prepared to visit the FTC offices and assist your staff investigators to identify the readily available Alaska State records indicating BP has deliberately reduced its Prudhoe crude oil production below capacity since 2005 Senate Commerce Committee scheduled June 3 Hearings, announced to be Chaired by Senator Maria Cantwell, is to address market manipulation issues. This has led me to address this letter to you at this time and copy Senator Cantwell and Governor Sarah Palin.