Railroad Commissioner Wayne Christian urged Texas oil and gas operators to report petroleum product and property theft, according to a Sept. 22 news release from the Railroad Commission of Texas (RRC), after testimony before a Senate committee highlighted the growing cost of oilfield crime.
Christian cited testimony before the Texas Senate Committee on Natural Resources from RRC staff, industry leaders and law enforcement officials serving on the State Task Force on Petroleum Theft, known as STOPTheft. According to the release, the testimony underscored the need for more data to combat theft and the importance of continued coordination through the task force.
“It has become clear that increased reporting of oil theft by industry is essential to identifying trends and quickly gathering available evidence,” Christian said. “While industry participation is critical, we must also continue to work to restore confidence that when an oil theft is reported, justice will be served.”
Karr Ingham, president of the Texas Alliance of Energy Producers, a petroleum economist and a STOPTheft appointee, shared a preliminary industry estimate that oilfield theft has a $4.3 billion economic impact on Texas, the commission said. The release also cited Texas Comptroller data showing that 92.7% of Texas oil and gas companies qualify as small businesses or microbusinesses.
Christian said smaller operators often have greater difficulty absorbing the cost of stolen oil, equipment and other assets, and that those losses strain operations and threaten the viability of many small producers.
“We are not just talking about stolen oil,” Christian said. “Criminals are stealing equipment, vehicles, materials and other property that our producers need to keep operating.”
The commissioner credited Sen. Kevin Sparks with authoring Senate Bill 494, which created STOPTheft during the 89th Legislature, and praised the Texas Department of Public Safety for its commitment to combating oilfield theft. The law established the task force to study petroleum product theft and recommend prevention strategies, with participation from industry and local, state and federal law enforcement, according to the release.
“We still have work to do, but the impact of this legislation is already measurable,” Christian said of the bill.
The commission’s call for more reporting is aimed at giving the task force and law enforcement better data to identify theft trends and preserve evidence, the release said.