Oil Field Theft - Oil Field Theft - OverviewOverview

Oil Field TheftOil Field Theft

ODESSA, Texas (AP) – Ten people have been arrested in the theft of about $2 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 million worth of oil and gas condensate from oil companies and producers in three West Texas counties.three West Texas counties.

The arrests yesterday came following a seven-month investigation by the The arrests yesterday came following a seven-month investigation by the Permian Basin Oilfield Theft Task ForcePermian Basin Oilfield Theft Task Force of an oilfield theft ring operating in of an oilfield theft ring operating in Midland, Ector and Andrews counties.Midland, Ector and Andrews counties.

Six of the suspects were charged with federal wire fraud, mail fraud and Six of the suspects were charged with federal wire fraud, mail fraud and conspiracy charges and four were arrested on state money laundering charges.conspiracy charges and four were arrested on state money laundering charges.

Midland County Sheriff Gary Painter said the suspects stole, in one month, 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.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 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.the stolen oil and gas to buyers who didn’t know of the theft.

Oil Field TheftOil Field TheftTaft, Calif. - A Taft woman is facing grand theft and embezzlement Taft, Calif. - A Taft woman is facing grand theft and embezzlement charges for the alleged theft of pumping units from Aera Energy charges for the alleged theft of pumping units from Aera Energy LLC.LLC.

Investigators from the Kern County Sheriff’s Rural Crimes Investigators from the Kern County Sheriff’s Rural Crimes Investigations Unit arrested Susan Marie Rubadeau on Oct. 8.Investigations Unit arrested Susan Marie Rubadeau on Oct. 8.

According to a news release, Rubadeau, a manger for SME According to a news release, Rubadeau, a manger for SME Corporation, arranged for the pumping units to be removed from Corporation, arranged for the pumping units to be removed from Aera property in the area and sold to a third party.Aera property in the area and sold to a third party.

Investigators said the scheme was discovered when the pumping Investigators said the scheme was discovered when the pumping units were eventually sold back to Aera. Rubadeau has pleaded 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 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.readiness hearing. She is currently free on $20,000 bail.

Oil Field TheftOil Field TheftClass A MisdemeanorClass A Misdemeanor– $500 or more but less than $1,500$500 or more but less than $1,500

State Jail FelonyState Jail Felony– $1,500 or more but less than $20,000$1,500 or more but less than $20,000

Felony of the Third DegreeFelony of the Third Degree– $20,000 or more but less than $100,000 $20,000 or more but less than $100,000

Felony of the Second DegreeFelony of the Second Degree– $100,000 or more but less than $200,000$100,000 or more but less than $200,000

Felony of the First DegreeFelony of the First Degree– $200,000 or more.$200,000 or more.

Oil Field TheftOil Field Theft

Let's also assume that you are operating on Let's also assume that you are operating on a 5% profit margin, after taxes. a 5% profit margin, after taxes.

If one piece of equipment is stolen and that If one piece of equipment is stolen and that piece of equipment cost $50,000.00, it will piece of equipment cost $50,000.00, it will take $1,000,000.00 in gross sales to make take $1,000,000.00 in gross sales to make

up the $50,000.00 loss.up the $50,000.00 loss.

Oil Field TheftOil Field Theft

Criminals will steal whatever they can get their hands onCriminals will steal whatever they can get their hands on - - and they can get their hands on a lot of expensive and they can get their hands on a lot of expensive

equipment in the oilfield. From $100 tools to $10,000 tongs, equipment in the oilfield. From $100 tools to $10,000 tongs, it all adds up to a big problem for energy sector it all adds up to a big problem for energy sector

organizations. organizations.

Tip of the icebergTip of the iceberg

some is not reportedsome is not reported More at stake than just moneyMore at stake than just money

bonuses, benefits, cutbacksbonuses, benefits, cutbacks Has to be something they can fence or sell outrightHas to be something they can fence or sell outright

Accomplished could spread through an entire networkAccomplished could spread through an entire network

Oil Field TheftOil Field Theft

Prevent theftPrevent theftUpdate your security systems to deny entry to unauthorized personnel. Update your security systems to deny entry to unauthorized personnel.

Add surveillance cameras and remote monitoring to leverage the Add surveillance cameras and remote monitoring to leverage the effectiveness of your security team. Educate the crew about the scope effectiveness of your security team. Educate the crew about the scope

of the problem and how important simple things like locking a of the problem and how important simple things like locking a doghouse are. doghouse are.

DeterrenceDeterrencePost signs alerting potential criminals that all equipment is marked and Post signs alerting potential criminals that all equipment is marked and traceable. Even if surveillance cameras didn’t prevent a crime, they can traceable. Even if surveillance cameras didn’t prevent a crime, they can

provide footage of the crime that helps law enforcement. Place a 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 sticker on all your equipment to let thieves know they’ll have a hard

time fencing their ill-gotten goods. time fencing their ill-gotten goods.

GPSGPSConsider investing in GPS sensors for your most valuable equipment.Consider investing in GPS sensors for your most valuable equipment.

Oil Field TheftOil Field Theft

Inventory controlInventory controlMake sure you can quickly identify when equipment is Make sure you can quickly identify when equipment is stolen and alert law enforcement in a timely mannerstolen and alert law enforcement in a timely manner

Record Serial NumbersRecord Serial Numbers

Ensure that you have the information you need to help Ensure that you have the information you need to help catch the criminals.catch the criminals.

Report Stolen Items YesterdayReport Stolen Items Yesterday

Always report stolen items as quickly as possible after the Always report stolen items as quickly as possible after the occurrence. Confirm serial numbers before buying occurrence. Confirm serial numbers before buying

equipment. By preventing the sale of stolen equipment you equipment. By preventing the sale of stolen equipment you hinder the ability of thieves to profit, and thus reduce the hinder the ability of thieves to profit, and thus reduce the

desirability of oilfield equipment. desirability of oilfield equipment.