Help Support EcoWatch
The best of EcoWatch, right in your inbox. Sign up for our email newsletter!
By Sabrina Kessler
Far-reaching allegations about how a climate-sinning American multinational could shamelessly lie to the public about its wrongdoing mobilized a small group of New York students on a cold November morning. They stood in front of New York's Supreme Court last week to follow the unprecedented lawsuit against ExxonMobil.
The case is not about the damage to the planet the energy giant has caused. Instead, ExxonMobil is being forced to answer allegations that it played down the consequences of climate change to consumers and investors for decades.
What looked like a clear victory for the Attorney General's Office, however, now threatens to turn into a damp squib. The prosecution quickly admitted it had failed to prove that the company deliberately deceived shareholders and a few days ago, Assistant Attorney General Jonathan Zweig dropped one of the main allegations — investor fraud.
The state of New York had wanted to prove that the Texas-based oil giant knowingly misled shareholders. ExxonMobil is said to have built a "long-standing fraudulent system" to cover up the true impact of climate change. All this to push up the stock price. Similar allegations were once made against the tobacco industry, which publicly denied the risk of cancer, even though it knew better. What followed were penalties in the billions.
ExxonMobil did not respond to a request from DW. The Group's website contains a statement from last month in which the company promised it would be exonerated in court: "The allegations of the New York Attorney General are false," it said.
The student protest is one of several held outside the New York Supreme Court during the trial.
Investors had been informed through regular announcements about how the company responds with climate-related risks, the company added. "The New York attorney general's case is misleading and deliberately misrepresents a process we use to ensure company investments take into account the impact of current and potential climate-related regulations."
However, this remaining lawsuit is not just against any company, but one built by the man once considered to be the richest American of all time. ExxonMobil's roots go back to John D. Rockefeller, the U.S. oil magnate who built one of the country's first oil refineries in 1863. His company, the Standard Oil Company, grew so powerful that within a few decades the U.S. Supreme Court ordered it to be broken up into more than 30 companies, two of which grew into today's ExxonMobil.
This company, in turn, rebuilt itself into one of the largest in the world: the oil multinational recorded sales of $279 billion (€253 billion) last year alone. By way of comparison, Apple achieved $266 billion in 2018.
Former U.S. Secretary of State Rex Tillerson previously had a decade-long tenure as Exxon Mobil's chair and CEO.
Impact Known for Years
Success does, however, have its negatives. ExxonMobil is one of the largest global climate sinners. Not only are forests being cleared and waters and soils polluted to unearth more than 4 million barrels a day of black gold, the oil giant also contributes almost 2% to global carbon dioxide (CO2) emissions, according to calculations from the UK-based Carbon Disclosure Project. Over the last 50 years, it has created 42 billion tons of CO2.
The oil companies know only too well how much they endanger the climate. Exxon Mobil, for example, is said to have known since the 1970s about the impact the oil business was having on the planet. However, these findings never reached the outside world. "Exxon Mobil is a climate criminal," alleges 350.org, a nonprofit environmental organization that supports students in their protests.
Despite this, the state of New York has not yet been able to prove ExxonMobil's culpability. Not a single shareholder who testified in court claimed to have been deceived. The prosecution now has to prove that the oil giant was wrong to assure its investors that it was adequately preparing its own business for a decarbonized future. A ruling is expected in the coming weeks.
ExxonMobil's biggest challenge, however, is a different one. A glance at Wall Street data reveals that the energy sector is increasingly losing its standing. Today, the industry represents less than 5% of the total market value of all companies indexed in the S&P 500. Five years ago, it was still over 15%.
Oil Price Remains Low
ExxonMobil is struggling with its greed for profits. Since its all-time high five years ago, the stock price has collapsed by a third. It has long been clear that coal, gas and oil can no longer earn as much as they used to. Coal, for example, is increasingly being replaced by natural gas, which is much cheaper. Oil is also being fractured in such quantities that the market is literally flooded. Not even the military attacks on Saudi Arabia's oil fields in September caused a lasting rise in the price of oil. It has lost 20% since January.
Exxon Mobil has the 14th-largest oil and gas reserves and is the largest refiner in the world.
For analysts, one thing is clear: ExxonMobil needs new ways to revive itself. "The Stone Age didn't end because the stones ran out," analyst Stewart Glickman of CFRA Research told DW. In other words, it will not be the lack of oil that will put a spoke in the wheel for the oil giants, but the lack of profitability. Competitors like Royal Dutch Shell have long been experimenting with renewable energies in order to do justice to the zeitgeist. ExxonMobil is years behind.
The company's future strategy is still heavily reliant on fossil fuels. This includes the production of shale oil (fracking) in the West as well as natural gas plants in Papua New Guinea, oil wells in South American Guyana and the development of new fields in Brazil and Mozambique.
The Group intends to invest $230 billion in these projects in the coming years. However, only a fraction of this is for environmentally friendly technologies. The oil giant has committed just $10 billion to these types of projects — in the last twenty years.
Reposted with permission from DW.
- Massachusetts Sues ExxonMobil For Climate Disinformation ... ›
- ExxonMobil Accused of Pressuring Witnesses in Climate Fraud Case ›
EcoWatch Daily Newsletter
By Jessica Corbett
In a rare calm moment during a historically active Atlantic hurricane season, an international team of climate scientists on Monday published a new study in the journal Nature Climate Change showing that human-caused global heating is making the world's oceans more "stable"—which, as co-author Michael Mann explained, is "very bad news."
<div id="e639b" class="rm-shortcode" data-rm-shortcode-id="d8d112e123588b9bf3c3eadcc89627e8"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1310602217825726465" data-partner="rebelmouse"><div style="margin:1em 0">Thank you to @MichaelEMann for patiently and clearly explaining to non scientists why increased ocean stabilizati… https://t.co/yW2BmQhKGp</div> — Dr Naomi Wolf (@Dr Naomi Wolf)<a href="https://twitter.com/naomirwolf/statuses/1310602217825726465">1601306893.0</a></blockquote></div>
<div id="85eca" class="rm-shortcode" data-rm-shortcode-id="43780424fc8b04e23a525e1bad1086eb"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1310608647651811336" data-partner="rebelmouse"><div style="margin:1em 0">Canada has oceans on 3 sides-we can't ignore the climate news that The Oceans Appear to Be Stabilizing. Here's Why… https://t.co/SfWJWWRHr7</div> — Friends Of Halifax Common (@Friends Of Halifax Common)<a href="https://twitter.com/FriendsHalifax/statuses/1310608647651811336">1601308426.0</a></blockquote></div>
<div id="3e52e" class="rm-shortcode" data-rm-shortcode-id="f210e186b6e1481a64770e0c8722a438"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1310638669477236738" data-partner="rebelmouse"><div style="margin:1em 0">"Das bedeutet, dass das CO2-Budget, das zur Vermeidung kritischer Erhitzung (z.B. 1,5°C) übrig bleibt, möglicherwei… https://t.co/675YBTSybJ</div> — Parents For Future #SystemChangeNotClimateChange (@Parents For Future #SystemChangeNotClimateChange)<a href="https://twitter.com/parents4future/statuses/1310638669477236738">1601315583.0</a></blockquote></div><p>Ending his piece on a similar note, Mann wrote that "in short, it's unwise to be complacent given the accumulating scientific evidence that climate change and its impacts may well be in the upper end of the range that climate scientists currently project. There is ever-greater urgency when it comes to acting on climate. But there is agency as well. Our actions <a href="https://www.newsweek.com/dangerous-new-form-climate-denialism-making-rounds-opinion-1455736" target="_blank">make a difference</a>—something to keep in mind as we head into a presidential election <a href="https://www.newsweek.com/greta-thunberg-donald-trump-true-leadership-climate-change-free-world-1461147" target="_blank">whose climate implications</a> are monumental."</p><p>Mann is on the mounting list of climate experts and advocates <a href="https://www.axios.com/2020-presidential-election-joe-biden-endorsed-climate-scientists-24013990-0300-4c2c-ad95-57571b397196.html?fbclid=IwAR3vTCBmK5BwvoafwGefadTsnIMnKo9FS6ssc9PCdFLEeXr6p4KHlnrFWKU" target="_blank">supporting </a>Democratic presidential nominee Joe Biden in his effort to oust President Donald Trump—who has, at various points, ignored and exacerbated the climate emergency. Earlier this month, the <a href="https://www.commondreams.org/news/2020/09/15/matter-life-and-death-after-175-years-scientific-american-backs-biden-magazines" target="_blank" rel="noopener noreferrer">editors</a> of<em> Scientific American</em> as well as the political action arms of both 350 and Friends of the Earth also <a href="https://www.commondreams.org/news/2020/09/24/clarion-call-all-progressive-environmentalists-defeat-trumps-planetary-destruction" target="_blank" rel="noopener noreferrer">endorsed</a> the former vice president.</p><p>"The stakes are clear and present," Tamara Toles O'Laughlin from 350 Action said of the general election, for which early voting is already underway in some states. "The planet cannot withstand four more years of Trump."</p>
- 5 Things to Know About Earth's Warming Oceans - EcoWatch ›
- Report Details Climate Crisis Impacts on Coral Reefs, Warns of ... ›
- 'A Little Shocking': Ocean Currents Are Speeding up Significantly ... ›
By Hannah Murphy
When he talks about the Trump administration, David Doniger likes to say: "Imagine where we'd be if they knew what they were doing." The climate lawyer and senior advisor to the NRDC Action Fund spends his days defending the environment from the U.S. government, and for the past three and a half years, that's meant a front-row seat to the Trump administration's relentless attacks on any regulation that's meant to slow the climate crisis.
- Trump's Climate Change Record Threatens the Planet - EcoWatch ›
- Climate Change Purged From White House Website - EcoWatch ›
- America Burns From Climate Change While Trump Officials Attend ... ›
The Johns Hopkins University tracker for worldwide coronavirus cases showed that the world passed a grim milestone early Tuesday morning, as more than 1 million have died from the virus and the infection it causes, COVID-19.
- US Coronavirus Deaths Pass 200000 as New Surge in Cases Begins ›
- U.S. Coronavirus Death Toll Tops 170,000 Ahead of Flu Season ... ›
- U.S. Coronavirus Death Toll Now No. 1 in World - EcoWatch ›
Maryland will become the first state in the nation Thursday to implement a ban on foam takeout containers.
- New Jersey Legislature Passes 'Most Comprehensive' Plastics Ban ... ›
- Canada to Announce Ban on Single-Use Plastics - EcoWatch ›
- The Complex and Frustrating Reality of Recycling Plastic - EcoWatch ›
- Dunkin' Says Bye to Foam Cups (But Bring Your Own Thermos ... ›
- Maine and Vermont Pass Plastic Bag Bans on the Same Day ... ›
By Ajit Niranjan
Leaders from across the world have promised to turn environmental degradation around and put nature on the path to recovery within a decade.
- Destruction of Nature Is Triggering Pandemics, Say Leaders of WWF ... ›
- The UN Wants to Protect 30% of the Planet by 2030 - EcoWatch ›
- New WWF Report Calls for Protecting Nature to Prevent Future ... ›