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More Oil Companies Could Join Exxon Mobil as Focus of Climate Investigations

cigaretteman

HB King
May 29, 2001
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The opening of an investigation of Exxon Mobil by the New York attorney general’s office into the company’s record on climate change may well spur legal inquiries into other oil companies, according to legal and climate experts, although successful prosecutions are far from assured.


Many oil companies have funded lobbying efforts and research on climate change, so prosecutors would most likely be able to search through vast amounts of material. The industry has also resisted pressure for years from environmental groups to warn investors of the risks that stricter limits on carbon emissions could have on their businesses, although that appears to be changing.

Exxon Mobil is not alone,” said Stephen Zamora, a professor at the University of Houston Law Center. “This is not likely to be an isolated matter.”

Energy experts said prosecutors may decide to investigate companies that chose to fund or join organizations that questioned climate science or policies designed to address the problem, such as the Global Climate Coalition and the American Legislative Exchange Council, to see if discrepancies exist between the companies’ public and private statements.

British Petroleum (now BP), Shell Oil, Texaco (now part of Chevron) and Exxon, along with several manufacturing companies, were all members of the coalition, a group of companies and trade associations that started an advertising campaign in the 1990s opposing Washington’s involvement in strong international efforts like the Kyoto Protocol initiative to reduce greenhouse gas emissions.

Energy experts said internal documents from member companies about climate change could contradict what the companies said as part of the coalition, which disbanded in 2002.

“There was a concerted effort by multiple American oil companies to obscure the emerging climate science consensus throughout the 1990s,” said Paul Bledsoe, a former White House aide to President Bill Clinton on climate issues. “This group may be vulnerable to legal challenge.”

British Petroleum and Shell Oil left the coalition early on, setting a pattern in which European oil companies took a very different course on climate and other environmental issues than most of their American competitors.

Shell announced this summer that it would not renew its membership in the American Legislative Exchange Council, or ALEC, a free-enterprise group that has opposed government mandates, subsidies and other efforts to force or encourage companies to develop and use more renewable energy sources.

Occidental Petroleum and several other companies have also left ALEC, but Chevron and Exxon Mobil still support the group.

Big American and European oil companies can point to efforts they have made to support renewable energy, perhaps clouding attempts by prosecutors to paint them as one-sided on the issue of climate change.

Chevron, for example, has been a pioneer in geothermal energy for decades. Exxon Mobil has a project underway to convert algae into a biofuel that can run vehicles and soak up carbon. BP is active in wind power. Several companies in the United States have begun working with the Environmental Defense Fund to limit emissions of methane.

“The oil and gas industry has probably been the biggest funder of research into decarbonization, maybe more even than the federal government,” said Michael Webber, deputy director of the Energy Institute at the University of Texas.

But it has been foreign oil and gas companies, including most recently Total of France and BHP Billiton of Australia, that have been most outspoken about the dangers of climate change.

Last month, 10 of the world’s biggest oil companies, including BP, Royal Dutch Shell, Saudi Aramco, Repsol of Spain, Eni of Italy and Total, made a public declaration acknowledging that their industry must help address global climate change.

None of the big American companies joined the group, largely because they oppose carbon taxes and trading of carbon-emission permits — remedies that would raise the price of fossil fuels like oil and natural gas.

Last September, five major European, Asian and Latin American oil and gas companies signed on to a voluntary United Nations-backed program to monitor and disclose methane emissions, as well as invest in technologies to control greenhouse gases from their operations.

The only American company to join was Southwestern Energy, a midsize Houston-based company that mostly invests in natural gas.

“There are times to go off the reservation, and this may be one of them,” said Steven L. Mueller, chief executive of Southwestern Energy, just after his company joined the effort.

Energy experts say it will be harder to make cases against the oil companies than it was against tobacco companies that deliberately hid research from their customers, since many oil company scientists, including those of Exxon Mobil, have presented papers on climate change publicly at conferences and contributed to the research of international groups concerned with the issue.

“Unless they directly lied in Congress, the legal case against them is kind of thin,” said Hal Harvey, chief of Energy Innovation, an energy consultancy. But he added, the record shows that the companies “have walked away from being a credible spokesman on science.”

http://www.nytimes.com/2015/11/07/s...column-region&region=top-news&WT.nav=top-news
 
And the inquisition expands....

No kidding.

Don't companies have a right to lobby and spend money on research as they see fit?

I'm not seeing the illegality here.

I see the government trying to "investigate" companies because they didn't push the "official" government story on climate change.
 
You need to believe what the government tells you otherwise you face the long arm of the law. This is getting out of control.
 
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And the inquisition expands....

No kidding.

Don't companies have a right to lobby and spend money on research as they see fit?

I'm not seeing the illegality here.

I see the government trying to "investigate" companies because they didn't push the "official" government story on climate change.

inhofe-snowball-cspan-cap.jpg
 
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I see the government trying to "investigate" companies because they didn't push the "official" government story on climate change.

Nope. Exxon's own internal research from the 1980s MATCHES what current scientists are claiming.
One of the two stories is consistent with the science; one is not.

Just because the one that matches the science belongs to 'the government', you choose to ignore it.
 
Nope. Exxon's own internal research from the 1980s MATCHES what current scientists are claiming.
One of the two stories is consistent with the science; one is not.

Just because the one that matches the science belongs to 'the government', you choose to ignore it.

I don't believe publicly-held companies are required to discuss every possible threat to the company.

Should they be required to evaluate and disclose the possibility of asteroid strikes impacting profitability in the long term?
 
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I don't believe a publicly-held companies are required to discuss every possible threat to the company.
Yes, they are. Every 'reasonable' threat; and when they were internally identifying CO2 levels and climate as something which was a legitimate risk (30+ years ago), they were required to disclose those risks to shareholders in their Prospectuses. Particularly if it might mean their long-term oil and gas assets may become 'stranded' and un-drillable.

Not really much different from cigarette companies, which downplayed (and clearly knew) the risks of smoking. And they have been held liable.
 
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Yes, they are. Every 'reasonable' threat; and when they were internally identifying CO2 levels and climate as something which was a legitimate risk (30+ years ago), they were required to disclose those risks to shareholders in their Prospectuses. Particularly if it might mean their long-term oil and gas assets may become 'stranded' and un-drillable.

Not really much different from cigarette companies, which downplayed (and clearly knew) the risks of smoking. And they have been held liable.

Next you'll be telling me that global warming is directly linked to cancer.

The tobacco companies settled wrongful death claims; not shareholder disclosure claims.

And you also have to factor damages. Have stockholders lost any money because of this omission?
 
Next you'll be telling me that global warming is directly linked to cancer.

The tobacco companies settled wrongful death claims; not shareholder disclosure claims.

And you also have to factor damages. Have stockholders lost any money because of this omission?[/QUOTE]

If the oil companies knew than so did the auto manufacturers. I'm going sue and get a free electric car.
 
The tobacco companies settled wrongful death claims; not shareholder disclosure claims.

If they are representing a stock value based partly on 'drillable assets', and those recoverable assets are knocked in half, due to information THEY KNEW could impact them, and DID NOT clearly represent that risk to investors, they can be liable for it. Anyone who purchased shares based on a knowingly false narrative of their claimed assets could make a claim for a discounted pricing/refund on the shares prices.

Still, those with the MOST to lose with respect to stranded oil assets are Saudi Arabia and Iran. And that is probably one of the factors in Iran coming to the table on the nuclear deal - they NEED to get their resources out of the ground BEFORE those assets become undrillable.....
 
Nope. Exxon's own internal research from the 1980s MATCHES what current scientists are claiming.
One of the two stories is consistent with the science; one is not.

Just because the one that matches the science belongs to 'the government', you choose to ignore it.

But where is the illegality?
 
If they are representing a stock value based partly on 'drillable assets', and those recoverable assets are knocked in half, due to information THEY KNEW could impact them, and DID NOT clearly represent that risk to investors, they can be liable for it. Anyone who purchased shares based on a knowingly false narrative of their claimed assets could make a claim for a discounted pricing/refund on the shares prices.

Still, those with the MOST to lose with respect to stranded oil assets are Saudi Arabia and Iran. And that is probably one of the factors in Iran coming to the table on the nuclear deal - they NEED to get their resources out of the ground BEFORE those assets become undrillable.....

How would you valuate this "risk" to 'drillable assets'?
 
How would you valuate this "risk" to 'drillable assets'?

You DISCLOSE it in your SEC filings and prospectus: "Our research indicates that CO2 cap WILL become a necessity at some point in the future, which MAY have a negative impact on our recoverable assets at that time". It's not hard.
 
You DISCLOSE it in your SEC filings and prospectus: "Our research indicates that CO2 cap WILL become a necessity at some point in the future, which MAY have a negative impact on our recoverable assets at that time". It's not hard.

They had research indicating that the government will impose a CO2 cap? When? Where?

Nobody puts anything like this in a quarterly disclosure. Hell, the sun will expand and swallow the planet at some point in the future. Are all the stock reports disclosing that?
 
They had research indicating that the government will impose a CO2 cap? When? Where?

Nobody puts anything like this in a quarterly disclosure. Hell, the sun will expand and swallow the planet at some point in the future. Are all the stock reports disclosing that?

That was in some of their internal scientific recommendations - that limiting CO2 release WAS going to be necessary at some point AND posed a risk to their operations. If that information, which was disclosed to their board and execs, DID NOT make it into information provided to investors, they can be liable.
 
That was in some of their internal scientific recommendations - that limiting CO2 release WAS going to be necessary at some point AND posed a risk to their operations. If that information, which was disclosed to their board and execs, DID NOT make it into information provided to investors, they can be liable.

That's not science, that's speculating on politics.

Good grief, dumbest freaking argument ever.
 
You should probably inform Exxon, circa 1980, then. Because it was THEIR internal statement.

Lots of companies speculated that the election of Obama would result in draconian environmental regulations. Please show me ONE example of this concern in ANY quarterly stockholder report?
 
Lots of companies speculated that the election of Obama would result in draconian environmental regulations. Please show me ONE example of this concern in ANY quarterly stockholder report?

Translation: I won't go look at Exxon's documents (including info targeted AT shareholder's meetings) because it may conflict with my unfounded belief that climate change is a hoax.
 
Translation: I won't go look at Exxon's documents (including info targeted AT shareholder's meetings) because it may conflict with my unfounded belief that climate change is a hoax.

Wait, so you're saying Exxon DID tell shareholders about it? If that's the case, what is being investigated?
 
Wait, so you're saying Exxon DID tell shareholders about it? If that's the case, what is being investigated?

InsideClimate News’ bombshell investigative series tells the story of Exxon’s longstanding awareness of the climate impacts of fossil fuels and the potential impact on its business. Exxon’s own scientists repeatedly warned the company’s top executives of damage from climate change driven by burning fossil fuels. A 1982 corporate primer stated, "there are some potentially catastrophic events that must be considered… Once the effects are measurable, they might not be reversible."

Though the company saw climate change as an existential threat to the oil business, Exxon’s annual reports filed with the Securities and Exchange Commission (SEC) did not disclose this information to investors as a material risk, as the SEC requires.

Indeed, Exxon’s own scientists have warned since the late 1970s that climate change poses a risk and that ExxonMobil’s proven hydrocarbon reserves have a high probability of becoming stranded. Despite this risk, the company stated the exact opposite to its investors, potentially in violation of SEC rules, and today continues to invest billions of shareholder dollars in acquiring more carbon-intensive reserves.
If Exxon is actively funding propaganda to discredit mainstream climate research, and DOES end up with stranded assets, it is fairly easy to see the conflict of interest here: using disinformation campaigns to falsely pump their valuations and claim fossil fuel assets they assert 'will never become stranded'.

http://thehill.com/blogs/congress-b...6136-what-exxon-didnt-tell-their-shareholders
 
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Have any hydrocarbon resources become stranded? Any idea when that will happen?

No one knew when their cancer 'was going to happen' from smoking cigarettes, either; nor did cigarette companies know when the government was going to legislate and limit their marketing or hold them accountable to the tune of many millions of dollars. But the fact they hid the info, while fully recognizing the risks, is what left them liable.
 
Have any hydrocarbon resources become stranded? Any idea when that will happen?

The lawyers will
No one knew when their cancer 'was going to happen' from smoking cigarettes, either; nor did cigarette companies know when the government was going to legislate and limit their marketing or hold them accountable to the tune of many millions of dollars. But the fact they hid the info, while fully recognizing the risks, is what left them liable.

Wrong. Lawsuits generally require actual "damages."
 
The lawyers will


Wrong. Lawsuits generally require actual "damages."

You mean, like the islanders who's homes are going underwater?
And Exxon KNEW that sea level rise was going to become an issue?

It's pretty much a given that NOT all of the identified fossil fuel resources can be burned; thus, SOME of them WILL be stranded, and NOT pointing that out as a risk in your SEC filings, thus exaggerating the value of your assets, is definitely a claim that investors can make. All Exxon had to do was acknowledge that in a Prospectus. Instead, they have repeatedly denied it.
 
You mean, like the islanders who's homes are going underwater?
And Exxon KNEW that sea level rise was going to become an issue?

It's pretty much a given that NOT all of the identified fossil fuel resources can be burned; thus, SOME of them WILL be stranded, and NOT pointing that out as a risk in your SEC filings, thus exaggerating the value of your assets, is definitely a claim that investors can make. All Exxon had to do was acknowledge that in a Prospectus. Instead, they have repeatedly denied it.

When is this "cap" going to happen? Even "cap and trade" wouldn't leave anything "stranded." Not a single country is "capping" anything.

"Pretty much a given" is not a legal argument.
 
No kidding.

Don't companies have a right to lobby and spend money on research as they see fit?

I'm not seeing the illegality here.

I see the government trying to "investigate" companies because they didn't push the "official" government story on climate change.
Don't societies have a right to protect themselves from those who do great harm?
 
Don't societies have a right to protect themselves from those who do great harm?

There's been no great harm. The only reason we're able to detect this at all because we have technology. If the average global temperate is 2 degrees C hotter than it used to be 30 years ago, there's nothing on the Earth that would even notice the difference.

And if global warming causes warm days in November, give me more of that, please.
 
I don't believe publicly-held companies are required to discuss every possible threat to the company.

Should they be required to evaluate and disclose the possibility of asteroid strikes impacting profitability in the long term?
Why do you think a nation is obligated to permit companies to act in their own best interests when such acts are knowingly against the best interests of the people and the nation?

If other nations were deliberately damaging our environment, our resources, and our future, would we put up with it? Then why do we put up with it when it is our own creatures - corporations - who are acting against our best interests?
 
There's been no great harm. The only reason we're able to detect this at all because we have technology. If the average global temperate is 2 degrees C hotter than it used to be 30 years ago, there's nothing on the Earth that would even notice the difference.

And if global warming causes warm days in November, give me more of that, please.
I've recommended The Sixth Extinction to you at least twice. Obviously you aren't interested in being informed or you wouldn't continue to make such false claims. Not that that book is the only way to become informed but it's an easy read and very informative.
 
There's no damage, and even if there was, you have to figure out what was caused by man and what would have changed anyway. Despite your fantasies, the climate was never static. We don't live on a Goldilocks planet where everything is "just right." It was always changing before man came along, and it will continue to do so, no matter what man does or doesn't do. The warming of the world that occurred in recent centuries is THE REASON civilization developed and we're even here talking on the internet about it in the first place.

As was pointed out by another poster, the lunacy of this "investigation" could lead to people being allowed to sue because of some freak weather event. We'll no longer have "Acts of God" and instead we'll have "Acts of Exxon".

SMDH.
 
I've recommended The Sixth Extinction to you at least twice. Obviously you aren't interested in being informed or you wouldn't continue to make such false claims. Not that that book is the only way to become informed but it's an easy read and very informative.

No, I don't care what one book has to say.

There are many species that are benefiting from warmer weather. "Change" is not automatically "bad". I bet she didn't write that in her book.
 
Why do you think a nation is obligated to permit companies to act in their own best interests when such acts are knowingly against the best interests of the people and the nation?

If other nations were deliberately damaging our environment, our resources, and our future, would we put up with it? Then why do we put up with it when it is our own creatures - corporations - who are acting against our best interests?

We are only now developing alternative sources of energy. For centuries, the whole world has been complicit in the decision to rely on fossil fuels for the energy necessary for civilization itself. How can Exxon be singled out of the crowd? Isn't everyone basically at fault. Who hasn't profitted from fossil fuels? Who hasn't benefitted? If anything, this is a collective wrong.
 
We are only now developing alternative sources of energy. For centuries, the whole world has been complicit in the decision to rely on fossil fuels for the energy necessary for civilization itself. How can Exxon be singled out of the crowd? Isn't everyone basically at fault. Who hasn't profitted from fossil fuels? Who hasn't benefitted? If anything, this is a collective wrong.
I am absolutely willing to cut slack for actions taken when the harm wasn't known or was believed to be minor and worth the tradeoff. But that isn't what we are looking at here.
 
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