Canteen Clam Chowder

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1/4 cup olive oil

4 tablespoons chopped garlic

1/4 cup cooked bacon bits

1 tablespoon ground white pepper

1 tablespoon chopped fresh basil

1 tablespoon chopped fresh oregano

4 to 5 bay leaves

2 onions, finely diced

4 stalks celery, diced

1 cup sherry

1/2 cup clam stock

1/2 cup butter, at room temperature

1/2 cup all-purpose flour

4 cups heavy cream

1 1/2 pounds red potatoes, diced, cooked

2 pounds chopped clams