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Big Oil SIG: ExxonMobil
Big Oil is a global disaster hiding behind many masks.
From Wikepedia: formed 1990 – merger of Exxon and Mobil.
Largest corporation in world -- $404.5 billion for fiscal year 2007.
From their web site:
"ExxonMobil strives to conduct business throughout the world in a manner that is protective of the environment, and that is compatible with the environmental and economic needs of the communities in which we operate. We are committed to improving our environmental performance through scientifically sound and practical solutions with the goal of driving incidents with real environmental impact to zero."
"ExxonMobil’s primary role—and most important benefit to society—is to safely provide reliable and affordable supplies of energy to people around the world. Doing this well is essential to improving standards of living, and we are committed to doing so in a financially, environmentally, and socially responsible manner."
"Each summer, ExxonMobil sponsors the Green Team youth employment program. This program places students in environmental, beautification and construction projects at public parks and economically depressed neighborhoods throughout the United States."
But enough propaganda! Let's cut to the chase:
Chosen as one of the 10 worst corporations in the world for 2007 and 2005.
From the Exxpose Exxon web site: "Ever since global warming emerged on the international agenda, ExxonMobil has actively tried to defeat and derail efforts to address the problem. The company's legacy of denying the science and urgency of global warming is unparalleled - even as other oil companies acknowledged the problem. In 2006, the Washington Post deemed ExxonMobil the 'the highest-profile corporate skeptic about global warming.'"
ENVIRONMENTAL RECORD
Ranked 6th on Toxic 100 list of U.S. corporate air polluters by Political Economy Research Institute (PERI).
*Stanford University: ExxonMobil plans to invest up to $100,000,000 over 10 years in University’s Global Climate & Energy Project.
Exxon Valdez oil spill – 11 million barrels into Prince William Sound.
State of Alaska’s Exxon Valdez Oil Spill Trustee Council: the spill “…is widely considered the #1 spill worldwide in terms of damage to the environment.” But many larger spills have occurred since.
Inadequate response
“Cover up”
ExxonMobil later removed the name “Exxon” from its tanker shipping subsidiary which it renamed “Sea River Maritime” – wholly ExxonMobil-controlled, has separated charter and board of directors and the former Exxon Valdez is now Sea River Mediterranean legally owned by small, stand-alone company, which would have minimal ability to pay out on claims in the event of further accidents. ExxonMobil has yet to pay any of the $2.5 billion in punitive damages awarded to 33,000 fishermen, businesses and affected communities as a result of spill. ExxonMobil argues it should pay no more than $25 million in punitive damages and the case is currently on appeal to the U.S. Supreme Court.
Exxon Mobil’s Brooklyn Oil spill
N.Y. Attorney General Andrew Cuomo – July 17, 07 filed suit against Exxon Mobil Corporation and ExxonMobil Refining and Supply Company to force cleanup of spill at Greenpoint, Brooklyn and to restore Newtown Creek. Study by U.S Environmental Protection Agency in Sept, 07 reported that cumulative spill consisted of 17 – 30 million gallons of petroleum products from mid 1800s to the mid 1900s. The predecessor companies were taken over by ExxonMobil.
Astroturfing
ExxonMobil is a major funder of organizations campaigning against scientific opinion that global warming is caused by burning fossil fuels and against Kyoto Protocol. Leading member of one of the first skeptic groups, the Global Climate Coalition (founded 1989).
ExxonMobil has funded (among others)
The Competitive Enterprise Institute Heartland Institute Marshall Institute Congress on Racial Equality Tech Central Station.com International Policy Network (Guardian)
The Union of Concerned Scientists – report (2007) accused ExxonMobil of spending $16 million between 1998 and 2005 on grants to 43 organizations which dispute global warming. Report argued that ExxonMobil used disinformation tactics similar to those used by tobacco industry in its denials of the links between smoking and lung cancer, saying that the company used “many of the same organizations and personnel to cloud the scientific understanding of climate change and delay action on the issue.” These charges are consistent with a purported 1998 internal ExxonMobil strategy memo posted by the environmental group, Environmental Defense, stating,
Victory will be achieved when
Average citizens (and the media) “understand” (recognize) uncertainties in climate science; recognition of uncertainties becomes part of the “conventional wisdom”.
Industry senior leadership understands uncertainties in climate science making them stronger ambassadors to those who shape climate policy.
Those promoting the Kyoto Treaty on the basis of extant science appear out of touch with reality.
Aug. ’06 – You Tube video lampooning Al Gore by DCI Group – Washington PR firm with ties to ExxonMobil and the Republican Party.
Jan. ’07 – Company appeared to change its position. V.P. for public affairs Kenneth Cohen said, “we know enough now – or society knows enough now – that the risk is serious and action should be taken.” Cohen stated that as of 2006 ExxonMobil had ceased funding of Competitive Enterprises Institute and “five or six similar groups”.
Feb. ’07 – CEO Rex W. Tillerson acknowledges that the planet was warming and carbon dioxide levels were increasing, but in the same speech gave unalloyed defense of the oil industry and predicted that “… petroleum and natural gas would still be primary products. . .”
May ’07 – Greenpeace report lists 5 groups it stopped funding and also lists 41 other climate change skeptic groups which are still receiving ExxonMobil funds.
Foreign Business Practices
Forbes Magazine: article raises questions about ExxonMobil’s dealings with leaders of oil-rich nations.
Angola: controls 11 million acres off coast that holds 7.5 million barrels of crude.
Sudan: 2003 Office of Foreign Assets Control reported ExxonMobil engaged in illegal trade with Sudan and it, along with dozens of other countries settled with U.S. for $50,000.
Kazakhstan: March 2003 James Giffen of the Mercator Corporation was indicted, accused of bribing Pres. Nursultan Nazarbayer with $78 million to help ExxonMobil win a 25% share of the Tngiz oilfield, the 3rd largest in the world.
April 2003: former Mobil executive, J. Bryan Williams indicted on tax charges relating to this same transaction. The case is the largest under the Foreign Corrupt Practices Act. (This same series of events depicted in film, Syriana.)
U.S. Department of Justice release – Sept. 18 2003 U.S. District of New York announced that J. Bryan Williams, former chief executive of Mobil Oil Corporation had been sentenced to 3 years 10 months in prison on charges of evading income taxes of more than $7 million on unreported income, “including $2 million kickback he received in connection with Mobil Oil’s business in Kazakhstan.” According to documents filed with the court, Williams’ unreported income included millions of dollars in kickbacks from governments, persons and other entities with whom Williams conducted business while employed by Mobil. In addition to his sentence, Williams must pay a find of $25,000 and more than $3.5 million in restitution to the IRS in addition to penalties and interest.
Human Rights
Indonesia (Aceh) June 2001 Lawsuit against ExxonMobil was filed in Federal Court of the District of Columbia under the Alien Tort Claims Act. The suit alleges that ExxonMobil knowingly assisted Human Rights violations including torture, murder and rape by employing and providing material support to Indonesian military forces who committed alleged offenses during civil unrest in Aceh. Human Rights complaints involving ExxonMobil’s relationship with the Indonesian military first arose in 1992; the company denies these accusations and has filed a motion to dismiss the suit, which as of 2006 was still pending.
ExxonMobil was a sponsor of PNWER (Pacific Northwest Economic Region), Summit in Vancouver, July 20-24, 2008.
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