U.S. Unfolds Corporate Welfare Plan for Oil Industry Project in Colombia

Modernization and expansion of Ecopetrol's Barrancabermeja oil refinery in Colombia is slated to be partially funded by U.S. taxpayers, courtesy of the U.S. Trade & Development Agency (USTDA), the corporate welfare arm of the White House. USTDA is soliciting proposals from U.S. firms -- and U.S. firms only -- capable of assessing the current capabilities and future needs of the Barrancabermeja complex, according to a planning document located via a routine search of the FedBizOpps contracting database. The first step in this potential refinery upgrade is the selection of a contractor who would develop a "master plan" for the endeavor, as well as a "blueprint for financing the project," a 20-year forecast for product demand, and even an "environmental impact statement," the document, dated Dec. 19, says.

This interim "feasibility study," as the overall assessment is known, will cost $600,000 -- an arguably insignificant slice of the U.S. corporate welfare pie. However, considering the following investments (in U.S. dollars) that Ecopetrol made last year on its own, it becomes clear that the U.S. taxpayer-financed study -- not including future giveaways to the U.S. and Colombian oil sectors -- is an unnecessary handout that benefits industry on the backs of the working class.

For instance, Ecopetrol, according to its projected 2006 budget, allocated $339 million for exploration initiatives, $675 million for production, $256 million for petrochemical and refinery operations, $66 million for transportation, and $69 million for unspecified "corporate" expenses.

Finally, in light of the far-reaching nature of the international oil sector, it is this writer's opinion that there is zero justification for USTDA to steal money from the U.S. Treasury -- no matter if it were $600,000 or $600 million --  to help bolster an already thriving industry.

The above link to the USTDA planning document is scheduled to be active until Feb. 9, when the document will be archived under standard operating procedures of FedBizOpps.