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Exxon Mobil

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This article is part of the Center for Media & Democracy's spotlight on global corporations.

ExxonMobil
Founded 1870 as Standard Oil
Founder(s) John D. Rockefeller
Industry Gas & Oil
Products Fuels: Gasoline, Diesel, Heating Oil, Kerosene, Aviation, Marine; Lubricants: Commercial, Aviation, Marine, Personal; Synthetics
Website http://www.exxonmobil.com/corporate/ & http://www.mobil.com.co/Colombia-Spanish/LCW/Homepage.asp

ExxonMobil is the world's largest integrated oil company ahead of Shell & BP and deciding partner within the planet's biggest Public-Private Partnership (P3), Nederlandse Gasunie of 1963, with Royal Dutch Shell and the Dutch government, imposing U.S. high-pressure and long-distance technology to get the post-war contract with Europe, the Globe's first energy transition capturing the globalization trend at the same time. [1]

Exxon Mobil engages in oil and gas exploration, production, supply, transportation, and marketing around the world. It has proved reserves of just less than 21 billion barrels of oil equivalent. Exxon Mobil's refineries can handle more than 6 million barrels per day, and the company supplies refined products to more than 40,000 service stations in 118 countries that operate under the Exxon, Esso, and Mobil brands (including more than 16,000 in the US)." [2]

Contents

Exxon's funding of climate skeptics

A study by the US Union of Concerned Scientists reports that ExxonMobil funded 29 climate change denial groups in 2004 alone. Since 1990, the report says, the company has spent more than $19 million funding groups that promote their views through publications and Web sites that are not peer reviewed by the scientific community. [http://abcnews.go.com/Technology/story?id=2612021&page=1

See exxonsecrets.org for fact-sheets on funding recipients.

Between 1995 and 2005, Exxon Mobil spent $16 million to "bankroll more than 40 groups to quell the claims of global warming." [1]

During 2002, ExxonMobil donated $5.6 million to public policy organizations which share its agenda, either on climate change denial or general extreme free market advocacy. These included: [3]

In October 2006, two US Senators, Olympia Snowe, (R-Maine), and Jay Rockefeller, (D-W.Va.) wrote to ExxonMobil's chairman and CEO Rex W. Tillerson, asking that it "end any further financial assistance" to groups "whose public advocacy has contributed to the small but unfortunately effective climate change denial myth." The Senators singled out the Competitive Enterprise Institute and TechCentralStation as such groups. They wrote that "we are convinced that ExxonMobil's long-standing support of a small cadre of global climate change skeptics, and those skeptics' access to and influence on government policymakers, have made it increasingly difficult for the United States to demonstrate the moral clarity it needs across all facets of its diplomacy". [4]

In May of 2008, Greenpeace's ExxonSecrets blog pointed out that ExxonMobil announced "for the second consecutive year" that it will cut funding to groups which promote skepticism about global warming. Their work, Exxon said, “could divert attention from the important discussion on how the world will secure the energy required for economic growth in an environmentally responsible manner."Exxon Corporate Citizenship report, May 2008 - page 41

The groups cut off included the Capital Research Center, Committee for a Constructive Tomorrow, Frontiers of Freedom Institute, the George C. Marshall Institute, and the Institute for Energy Research. But Exxon continued to fund a further 28 groups which campaigned against climate science. And as the Center for Science in the public Interest noted in June 08, "Each group continued to receive Exxon funding in 2007 after the company’s first announcement that it would discontinue the payments. Exxon did not immediately return calls seeking comment on how serious it was in following through on its plans." [2].

In 2009, Exxon Mobil spent $27.5 million in lobbying against global warming, which is their second highest year on the books after 2008 election year. [3] Odwyer's Magazine describes Exxon's efforts as misleading: "ExxonMobil, absurdly praised in August by Forbes as “green company of the year,” was discovered the same month by the New York Times to have given major funding to industry groups like the now-defunct Global Climate Coalition, an organization that had silenced its own scientific reports and falsified information for more than a decade." [4]

In 2010, the Walkley Foundation, the professional development arm of Australia's media union the Media Entertainment and Arts Alliance, chose Exxon Mobil as the Gold sponsor for its August 2010 annual conference. In July, there were reports on the Australian Broadcasting Corporation's PM program and News Corporation's The Australian[5] that Exxon Mobil had broken its pledge not to fund climate skeptics. The Australian Centre for Independent Journalism (ACIJ) opposed the sponsorship and began a public petition [6] signed by journalists, environmentalists and academics asking the union to reconsider their agreement.

Exxon's Tiger PR

Recognizing Indian Prime Minister Manmohan Singh's visit to Washington, in mid-July 2005 ExxonMobil ran a quarter-page ad on the op-ed page of New York Times headlined "Saving Tigers." [7] According to Exxon's website, the company has given more than $9 million since 1995 to efforts to save endangered tigers. Exxon has claimed the tiger as its brand mascot since the 1930s. While "preserving the endangered Bengal tiger" did make its way in to an early State Department press release on the summit, India's nuclear industry, the global war on terrorism and foreign investment in India were the dominate themes of the meeting. The agreement to help India further develop its nuclear energy capacity is part of a larger U.S.-India Energy Dialogue that also includes an Oil and Gas Working Group that "will endeavor to strengthen mutual energy security and promote stable energy markets." Several NGOs have targeted ExxonMobil, criticizing the company for violating human rights and destroying the environment.

Exxon tries to explain their profits

After enjoying the largest profits of any company ever in recent years [8], Exxon Mobil has the resources -- and the need -- for expanded PR. The new campaign will "educate consumers and media about the inner workings of the oil industry, and the costs of producing, shipping, and refining crude," reports PR Week. It will include "PR, advertising, and media tours," as well as opinion pieces and meetings with editorial boards, including with regional and local media. Exxon will also give its "Energy Outlook" talk "at college campuses, high schools, and to academics." [9]

According to PR Week, "while Exxon works with a number of PR firms, including Weber Shandwick," the new campaign is "entirely in-house." After earning a record-breaking $36.1 billion last year, Exxon wants to avoid backlash from consumers angry about high gas prices and weaken support for the Windfall Profits Tax proposals before Congress. [10]

While no doubt there are many factors involved in the escalating price of gas, Exxon's public relations ploy of deflecting any attention away from Big Oil's role seems to be working. A recent Gallup Poll suggests that, "Ironically, the intensity with which Americans see oil companies as "gas price villains" may be fading a little, according to opinions respondents volunteered in a new Gallup Poll, conducted May 19-21. Over the past year, the percentage of Americans blaming the oil companies for skyrocketing gas prices fell from 34% to 20%; the percentage pointing to oil refinery problems fell from 16% to 9%; and those attributing the increase in prices to problems in the Middle East and the Iraq war fell from 13% to 8%. On the other hand, the percentage of Americans suggesting prices are increasing as a result of the economic forces of supply and demand increased from 10% to 15%, while 6% now point to speculators and 4% to the shrinking value of the dollar and the poor U.S. economy -- both new reasons not even mentioned a year ago. More Americans also mention crude oil prices, the shortage of oil supplies, and U.S. dependency on foreign oil" [11].

Ad boycott against Air America Radio

ExxonMobil refused to advertise on the progressive Air America Radio. In October 2006, around 90 companies, including ExxonMobil, told ABC Radio Networks that they did not want their ads to play on radio stations that carried Air America Radio. [5] [6] [7]

Political contributions

The ExxonMobil political action committee (PAC) contributed $698,450 to federal candidates in the 05/06 election cycle - 7% to Democrats and 93% to Republicans. [8]

Lobbying

Exxon is one of the largest energy company contributors to both Republican and Democratic candidates for Congress. These contributions total $676,177 to the 110th US Congress (as of the third quarter), the largest of which has been to Rep. John Cornyn (R-TX) for $46,000. Rep. Cornyn, for his part, has consistently voted with the oil industry on energy, war and climate bills.[12]

Contributions like this from fossil fuel companies to members of Congress are often seen as a political barrier to pursuing clean energy.

The company spent $14,520,000 for lobbying in 2006. Of this total, $1,055,000 was spent using outside lobbying firms, two of which included Nickles Group and DCI Group. [9]

More information on oil industry contributions to Congress can be found at FollowtheOilMoney.org, a project created by the nonpartisan, nonprofit organization Oil Change International.

Corporate Accountability

Labor

Human Rights

March 2005: “Pumping Poverty- Britain’s Department for International Development and the Oil Industry”
The author discusses the problems with ExxonMobil, especially the human rights problems with the Chad-Cameroon oil project and pipeline. [13] & [14]

John Doe I v. ExxonMobil, Case No. 01CV01357 (filed D.D.C. 2001).
Plaintiffs in Indonesia allege that they suffered human rights violations at the hands of Indonesian military that was hired by ExxonMobil to provide security for its natural gas facilities. Plaintiffs allege that ExxonMobil hired these troops knowing they would likely engage in massive human rights violations against the local population, and that all of the claims date from 2001, well after ExxonMobil had specific knowledge of massive human rights violations and could have changed their practices. Motion to dismiss is pending. "A Report about the Alien Tort Claims Act" & "U.S./Indonesia: Bush Backtracks on Corporate Responsibility" & "John Doe v. ExxonMobil Corp. Case" & "Doe v. ExxonMobil Corp."

Special Issues and Campaigns: World Report 1999
The joint venture of the United States-based Exxon, the French Elf Aquitaine, and Netherlands-based Royal Dutch/Shell which is constructing the $4 billion Chad-Cameroon oil pipeline was criticized throughout the year because of allegations of corruption and its detrimental effects on the environment and human rights. [15]

Environment

Exxon Valdez Oil Spill in Alaska
March 24, 1989, the tanker Exxon Valdez, ran aground on the Bligh Reef in Prince William Sound, Alaska. The tanker spilled approximately 10.9 million gallons of its 53 million gallon crude oil cargo. This oil spill would eventually impact over 1,100 miles of Alaska's coastline, making the Exxon Valdez the largest oil spill to date in U.S. waters. [10]

Consumer Protection and Product Safety

Anti-Trust and Tax Practices

Social Responsibility Initiatives

Personnel

Key executives and 2006 pay: [11]          Options
exercised
Rex W. Tillerson, Chairman and Chief Executive Officer    $4,300,000    $2,080,000
Donald D. Humphreys, Principal Financial Officer    $2,500,000    $2,460,000
H. R. Cramer, Vice President    $2,360,000    $6,350,000
J. Stephen Simon, Senior Vice President    $3,090,000    $4,580,000

Selected board members: [12]

Other Personnel

Contact details

5959 Las Colinas Boulevard
Irving, Texas 75039-2298
Phone: (972) 444-1000
Fax: (972) 444-1350
Web: http://www2.exxonmobil.com/corporate/

SourceWatch resources

External links

References

  1. "The Politics of Climate Change", Odwyer's Magazine, Feb. 2010.
  2. "Exxon Announces Cutoff for Warming Skeptics--Again", Integrity in Science, June 2, 2008.
  3. "The Politics of Climate Change", Odwyer's Magazine, Feb. 2010.
  4. "The Politics of Climate Change", Odwyer's Magazine, Feb. 2010.
  5. Marc Fisher, "Air America, in the Throes of Victory?", The Washington Post, December 10, 2006.
  6. "Air America on Ad Blacklist?", FAIR, October 31, 2006.
  7. "Air America Blackout", FAIR.org/ABC memo, October 25, 2006.
  8. PAC Summary Data, Open Secrets, accessed October 2007.
  9. ExxonMobil lobbying expenses, Open Secrets, accessed October 2007.
  10. Culter J. Cleveland, "Exxon Valdez Oil Spill", The Encyclopedia of the Earth, April 22, 2008.
  11. Exxon Mobil Key Executives, Yahoo Finance, accessed October 2007.
  12. Board of Directors, ExxonMobil, accessed August 2007.

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