Due to the large sums of money involved, subcontracting carries risks. Procurement deals are less visible and more numerous than the high-profile processes used to award exploration and production rights, and they are harder for government regulators, the media and civil society to scrutinize. They are therefore a common node for corruption.
If ExxonMobil and Chevron truly support transparency and wish to retain the reputational benefits of leadership in initiatives like the Extractive Industries Transparency Initative, they should support full implementation of Dodd-Frank 1504 in the U.S. (in line with laws in Europe and Canada) and disclose their tax payments in the U.S. and all other countries where they operate.
NRGI set out to collect total oil, gas and mining revenue data for the countries included in the Resource Governance Index to find out how many dollars flow to governments that mismanage the handling of their natural resources.
The U.S. Securities and Exchange Commission (SEC) should explicitly include payments arising from commodity trading in the final version of the rules implementing Section 1504 of the 2010 Dodd-Frank Act.