Saturday, May 17, 2008

How Risky is That Foreign Oil?

Rep Barney Frank Oil Companies RiskStockholders of oil and gas companies are at a loss to fully understand the associated risks with obtaining foreign oil.

But new legislation introduced by Rep. Barney Frank may help solve that problem.

The new bill introduced this week, H.R. 6066, would require oil and gas companies to disclose to the Securities and Exchange Commission (SEC) how much they pay foreign governments for the extraction of natural resources.

The new bill, "To require, for the benefit of shareholders, the disclosure of payments to foreign governments for the extraction of natural resources, to allow such shareholders more appropriately to determine associated risks", would allow shareholders to more accurately "determine associated risks" with investments in those companies.

Look for the oil industry to oppose this legislation in coming weeks.

Source: HR 6066 Summary, (THOMAS, Library of Congress)

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