Oil Field Theft Overview
Oil Field Theft
ODESSA, Texas (AP) – Ten people have been arrested in the theft of about $2
million worth of oil and gas condensate from oil companies and producers in
three West Texas counties.
The arrests yesterday came following a seven-month investigation by the
Permian Basin Oilfield Theft Task Force of an oilfield theft ring operating in
Midland, Ector and Andrews counties.
Six of the suspects were charged with federal wire fraud, mail fraud and
conspiracy charges and four were arrested on state money laundering charges.
Midland County Sheriff Gary Painter said the suspects stole, in one month,
about 8,000 barrels of oil from their companies, the Odessa American reported.
Officials said the operation was a partnership between a group of men who
sold the stolen oil and gas to buyers who didn’t know of the theft.
Oil Field Theft
Taft, Calif. - A Taft woman is facing grand theft and embezzlement
charges for the alleged theft of pumping units from Aera Energy
LLC.
Investigators from the Kern County Sheriff’s Rural Crimes
Investigations Unit arrested Susan Marie Rubadeau on Oct. 8.
According to a news release, Rubadeau, a manger for SME
Corporation, arranged for the pumping units to be removed from
Aera property in the area and sold to a third party.
Investigators said the scheme was discovered when the pumping
units were eventually sold back to Aera. Rubadeau has pleaded
not guilty to the charges. She is due back in court on Dec. 14 for a
readiness hearing. She is currently free on $20,000 bail.
Oil Field Theft
Class A Misdemeanor
– $500 or more but less than $1,500
State Jail Felony
– $1,500 or more but less than $20,000
Felony of the Third Degree
– $20,000 or more but less than $100,000
Felony of the Second Degree
– $100,000 or more but less than $200,000
Felony of the First Degree
– $200,000 or more.
Oil Field Theft
Let's also assume that you are operating on
a 5% profit margin, after taxes.
If one piece of equipment is stolen and that
piece of equipment cost $50,000.00, it will
take $1,000,000.00 in gross sales to make
up the $50,000.00 loss.
Oil Field Theft
Criminals will steal whatever they can get their hands on and they can get their hands on a lot of expensive
equipment in the oilfield. From $100 tools to $10,000 tongs,
it all adds up to a big problem for energy sector
organizations.
Tip of the iceberg
some is not reported
More at stake than just money
bonuses, benefits, cutbacks
Has to be something they can fence or sell outright
Accomplished could spread through an entire network
Oil Field Theft
Prevent theft
Update your security systems to deny entry to unauthorized personnel.
Add surveillance cameras and remote monitoring to leverage the
effectiveness of your security team. Educate the crew about the scope
of the problem and how important simple things like locking a doghouse
are.
Deterrence
Post signs alerting potential criminals that all equipment is marked and
traceable. Even if surveillance cameras didn’t prevent a crime, they can
provide footage of the crime that helps law enforcement. Place a sticker
on all your equipment to let thieves know they’ll have a hard time
fencing their ill-gotten goods.
GPS
Consider investing in GPS sensors for your most valuable equipment.
Oil Field Theft
Inventory control
Make sure you can quickly identify when equipment is
stolen and alert law enforcement in a timely manner
Record Serial Numbers
Ensure that you have the information you need to help
catch the criminals.
Report Stolen Items Yesterday
Always report stolen items as quickly as possible after the
occurrence. Confirm serial numbers before buying
equipment. By preventing the sale of stolen equipment you
hinder the ability of thieves to profit, and thus reduce the
desirability of oilfield equipment.