Bad Karma in the Gulf of Mexico Oil Disaster
Posted by Phil Mattera on May 10th, 2010
Originally posted on May 7 at Dirt Digger's Digest.
British Petroleum is, rightfully, taking a lot of grief for the
massive oil spill in the Gulf of Mexico, but we should save some of our
vituperation for Transocean Ltd., the company that leased the ill-fated
Deepwater Horizon drilling rig to BP. Transocean is no innocent
bystander in this matter. It presumably has some responsibility for the
safety condition of the rig, which its employees helped operate (nine of
them died in the April 20 explosion).
Transocean also brings some bad karma to the situation. The company,
the world’s largest offshore drilling contractor, is the result of a
long series of corporate mergers and acquisitions dating back decades.
One of the firms that went into that mix was Sedco, which was founded in
1947 as Southeastern Drilling Company by Bill Clements, who would
decades later become a conservative Republican governor of Texas.
In 1979 a Sedco rig in the Gulf of Mexico leased to a Mexican oil
company experienced a blowout, resulting in what was at the time the
worst oil spill the world had ever seen. As he surveyed the oil-fouled
beaches of the Texas coast, Gov. Clements made the memorable remarks:
“There’s no use in crying over spilled milk. Let’s don’t get excited
about this thing” (Washington Post 9/11/1979).
At the time, Sedco was being run by Clements’s son, and the family
controlled the company’s stock. The federal government sued Sedco over
the spill, claiming that the rig was unseaworthy and its crew was not
properly trained. The feds sought about $12 million in damages, but
Sedco drove a hard bargain and got away with paying the government only
$2 million. It paid about the same amount to settle lawsuits filed by
fishermen, resorts and other Gulf businesses. Sedco was sold in 1984 to
oil services giant Schlumberger, which transferred its offshore drilling
operations to what was then known as Transocean Offshore in 1999.
In 2000 an eight-ton anchor that accidentally fell from a Transocean
rig in the Gulf of Mexico ruptured an underwater pipeline, causing a
spill of nearly 100,000 gallons of oil. In 2003 a fire broke out on a
company rig off the Texas coast, killing one worker and injuring several
others. As has been reported in recent days, a series of fatal accidents
at company operations last year prompted the company to cancel
executive bonuses. It’s also come out that in 2005 a Transocean rig in
the North Sea had been cited by the UK’s Health and Safety Executive for a
problem similar to what apparently caused the Gulf accident.
Safety is not the only blemish on Transocean’s record. It is one of
those companies that engaged in what is euphemistically called corporate
inversion—moving one’s legal headquarters overseas to avoid U.S.
taxes. Transocean first moved its registration to the Cayman Islands in
1999 and then to Switzerland in 2008. It kept its physical headquarters
in Houston, though last year it moved some of its top officers to
Switzerland to be able to claim that its principal executive offices
In addition to skirting U.S. taxes, Transocean has allegedly tried to
avoid paying its fair share in several countries where its subsidiaries
operate. The company’s 10-K annual report admits that it has been assessed additional amounts
by tax authorities in Brazil and that it is the subject of civil and
criminal tax investigations in Norway.
In 2007 there were reports that Transocean was among a group of oil
services firms being investigated for violations of the Foreign Corrupt
Practices Act in connection with alleged payoffs to customs officials in
Nigeria. No charges have been filed.
An army of lawyers will be arguing over the relative responsibility
of the various parties in the Gulf spill for a long time to come. But
one thing is clear: Transocean, like BP, brought a dubious legacy to
this tragic situation.
Oil spill changes everything
Posted by Michael Brune on May 2nd, 2010
Originally posted on CNN.com on May 1.
Editor's note: Michael Brune is
executive director of the Sierra Club and former director of the
Rainforest Action Network.
The oil disaster
plaguing the Gulf of Mexico and our coastal states puts our desperate
need for a new clean energy economy in stark relief. We need to move
away from dirty, dangerous and deadly energy sources.
pleased that the White House is now saying it will suspend any new
offshore drilling while the explosion and spill are investigated, but
there should be no doubt left that drilling will only harm our coasts
and the people who live there.
Taking a temporary break from
offshore drilling is an important step, but it's not enough. We need to
stop new offshore drilling for good, now. And then we need an aggressive
plan to wean America from dirty fossil fuels in the next two decades.
This BP offshore rig that exploded was supposed to be
state-of-the-art. We've also been assured again and again that the
hundreds of offshore drilling rigs along our beaches are
completely safe. Now, we've seen workers tragically killed. We've seen
our ocean lit on fire, and now we're watching hundreds of thousands of
gallons of toxic oil seep toward wetlands and wildlife habitat.
rig's well is leaking 210,000 gallons of crude every day,
wiping out aquatic life and smothering the coastal wetlands of Louisiana
and Mississippi. As the reeking slick spreads over thousands of square
miles of ocean, it rapidly approaches the title of worst environmental
disaster in U.S. history, even worse than 1989's Exxon
Valdez oil spill. The well is under 5,000 feet of water, and it
could take weeks or even months to cap it.
This disaster could
unfortunately happen at any one of the hundreds of drilling platforms
off our coasts, at any moment. It could happen at the drilling sites
that the oil industry has proposed opening along the beaches of the
Indeed, even before this spill, the oil and gas industry had torn
apart the coastal wetlands of the Louisiana Bayou over the years. These
drilling operations have caused Louisiana to lose 25 square miles of
coastal wetlands, which are natural storm barriers, each year.
view: Why it won't be easy to replace fossil fuels
hardly just the environmental costs of oil spills that we have to worry
about with offshore drilling. The threat to the people who work on these
platforms has again become terribly clear. In fact, more than 500 fires
on oil platforms in the Gulf have injured or killed dozens of workers
in just the past four years, according to the federal Minerals
We don't need to pay this price for energy.
We have plenty of clean energy solutions in place that will end our
dependence on dirty fossil fuels, create good, safe jobs and breathe new
life into our economy.
One huge example came Thursday, when the
Obama administration approved our country's first offshore wind farm.
Our country has huge solar power potential as well. We can also save
more oil through simple efficiency measures than could be recovered by
new drilling on our coastlines.
This oil spill changes
everything. We have hit rock-bottom in our fossil fuel addiction. This
tragedy should be a wake-up call. It's time to take offshore drilling
off the table for good.
expressed in this commentary are solely those of Michael Brune.
Chevron Gets Fixed
Posted by Antonia Juhasz on November 4th, 2009
Originally published on 3 November 2009.
On Sunday, Chevron became the first oil company to come under a Yes Men Audience Attack.
(See Video, Photos, and Yes Man Andy Bichlbaum's Blog of event)
Chevron was chosen because Chevron is different from other oil companies.
It is bigger than all but three (only ExxonMobil, BP and Shell are
larger). It is facing the largest potential corporate liability in
history ($27 billion) for causing the world's largest oil spill in the
Ecuadorian rainforest. It is the only major U.S. Corporation still
operating in Burma and, with its partner Total Oil Corp., is the single
largest financial contributor to the Burmese government. It is the
dominant private oil producer in both Angola and Kazakhstan, with
operations in both countries mired in human rights and environmental
abuses. It is the only major oil company to be tried in a U.S. court on
charges of mass human rights abuse, including summary execution and
torture (for its operations in Nigeria).
It is the only oil company to hire one of the Bush Administration's
"torture memo" lawyers (William J. Haynes). It is the largest and most
powerful corporation in California, where it is currently being sued
for conspiring to fix gasoline prices. It has led the fight to keep
California as the only major oil producing state that does not tax oil
when it is pumped from the ground, thereby denying the state an extra
$1.5 billion annually. It is the largest industrial polluter in the Bay
Area and is among the largest single corporate contributors to climate
change on the planet.
Chevron is also the focus of one of the world's most unique and well-organized corporate resistance campaigns.
That campaign got a jolt of energy when Yes Man Andy Bichlbaum came
to San Francisco on Halloween weekend for a special screening of The Yes Men Fix the World.
Global Exchange and I teamed up with Andy (the movie's co-writer,
director, and producer) and a host of the Bay Areas most creative
activists, to lead an entire movie audience out of the theater, into
the streets, and in protest of Chevron.
We spread the word early, far, and wide: The Yes Men are coming! The
Yes Men are coming! They will not only fix the world, they will fix
Larry Bogad, a Yes Man co-hort and professor of Guerilla Theater,
helped concoct a masterful street theater scenario. A crack team of
protest and street theater organizers was compiled, including David
Solnit of the Mobilization for Climate Justice and Rae Abileah of Code Pink. Rock The Bike signed on and the word kept spreading.
On Sunday, the Roxie Theater in San Francisco's Mission District was
filled beyond capacity with an audience that came ready to protest.
They laughed, clapped, booed, and cheered along with the film. When the
movie ended, Andy answered questions, I talked about Chevron, and Larry
laid out the protest scenario.
Three Chevron executives, protected from the early ravages of climate change in SurvivaBalls,
were dragged up the street by dozens of Chevron minions with nothing
but haz-mat suits to protect them. Those unable to afford any
protection (i.e. The Dead) followed close behind. Next came resistance:
the Chevron street sweepers, actively cleaning up Chevron's messes who
were followed by the protesters, ready to change the story.
We didn't have a permit, but we took a lane of traffic on 16th
street anyway. The police first tried to intervene, then they "joined
in," blocking traffic on our way to Market and Castro.
As we marched and the music blared, people literally came out of
their houses and off of the streets to join in. Passersby eagerly took
postcards detailing Chevron's corporate crimes.
Once we arrived at the gas station, I welcomed everyone and
explained that we were at an independent Chevron (as opposed to
corporate) station, whose owner (whom I'd been speaking with regularly)
had his own list of grievances with his corporate boss. The particular
station was not our target of protest, but rather, the Chevron
Larry and Andy than led the entire crowd in a series of Tableaux
Morts. The Chevron executives in their SurvivaBalls drained the
lifeblood from the masses. The people began to rebel, forcing the
SurvivaBalls into the "turtle" position to fend off the attacks.
Ultimately, the separate groups saw their common purpose in resisting
Chevron's abuses. The dead rose, the Chevron minions rebelled, and the
sweepers and protesters joined together. They all chased the Chevron
executives off into the distance, and then danced in the streets,
rejoicing in their shared victory!
The Chevron Program
I direct at Global Exchange seeks to unite Chevron affected communities
across the United States and around the world. By uniting these
communities, we build strength from each other, and become a movement.
By expanding, strengthening, and highlighting this movement, we bring
in more allies and create a powerful advocacy base for real policy
change. Those changes will reign in Chevron, and by extension, the
entire oil industry. And, by raising the voices of those hardest hit by
the true cost of oil and exposing how we all ultimately pay the price,
we help move the world more rapidly away from oil as an energy resource
Berkeley, Oakland urge oil money transparency
Posted by Josh Richman on October 20th, 2009
Originally posted, October 14, 2009 on http://www.ibabuzz.com/politics/2009/10/14/berkeley-oakland-urge-oil-money-transparency/
Berkeley City Council last night approved a resolution urging the U.S. Senate to approve S.1700,
the “Energy Security Through Transparency Act” by U.S. Sen. Richard
Lugar, R-Ind., which would urge the Obama Administration to require
that companies disclose payments to foreign governments for oil, gas
and mineral rights. Oakland City Council passed a similar resolution last week.
“Good governance in extractive industries contribute to a better
domestic investment climate for U.S. businesses, increase the
reliability of commodity supplies, promote greater U.S. energy security
and thereby strengthen our national security,” says the summary on Lugar’s Web site.
San Francisco-based Justice in Nigeria Now hails the cities’ actions as a moral victory.
“I was tortured and imprisoned by the Nigerian military for my
peaceful protests against Shell Oil’s destruction of our land,” Suanu
Kingston Bere, a Nigerian activist who spoke at the Berkeley City
Council meeting, said in JINN’s news release. “I believe the City’s
support sends a strong message that communities in the U.S are
concerned about the human rights abuses and environmental damage
associated with oil extraction. I do not want to see my people continue
to go through what I went through.”
Berkeley’s resolution also calls on the State Department to support
third-party peace talks in the Delta to address environmental
destruction and lack of investment in the oil producing region. The
resolution was co-sponsored by Councilmembers Jesse Arreguin, Darryl Moore and Max Anderson and was introduced to the council through the Berkeley Peace and Justice Commission, which worked with JINN to draft it.
JINN says 50 years of oil exploitation in the Niger Delta has
produced over $700 billion in oil revenues shared between the Nigerian
government and oil giants like San Ramon-based Chevron as well as Exxon Mobil and Shell.
More than 40 percent of Nigeria’s oil is exported to the U.S. Yet
despite the corporate oil wealth, local residents’ quality of life has
deteriorated – their drinking polluted, their food fisheries poisoned,
their access to education, health care and even electricity limited.
“Oil companies in Nigeria have had long a relationship with the
notoriously corrupt and historically brutal Nigerian government where
rampant corruption, fraudulent elections and violent suppression of
peaceful protests are the norm in the Delta,” Nigerian writer and
activist Omoyele Sowore said in JINN’s news release. “The proposed ESTT
Act in the Senate is an important step toward holding oil companies
accountable for their collusion with the Nigerian government, which
protects their profits while killing and injuring innocent local people
and destroying the Delta’s fragile environment.”
Shell's Settlement Doesn't Hide Unsettling Reality in Nigeria
Posted by Stephen Kretzmann on June 11th, 2009
Originally posted June 10, 2009, on The Huffington Post.
After thirteen years and
countless hours by lawyers, community members, and activists around the
world, Royal Dutch Shell finally settled the Wiwa v Shell case in a New York court for $15.5 million.
Plaintiffs in the case, which included Ken Saro-Wiwa Jr., and the
families of other Ogoni men hanged in November 1995, charged the
Royal Dutch/Shell company, its Nigerian subsidiary, and the former
chief of its Nigerian operation, Brian Anderson, with complicity in the
torture, killing, and other abuses of Ogoni leader Ken Saro-Wiwa and
other non-violent Nigerian activists in the mid-1990s in the Ogoni
region of the Niger Delta.
they settled the case as a "humanitarian gesture" to the Ogoni. Does
anyone really believe that after fighting for more than a decade to
keep this out of court, Shell suddenly woke up and felt great
compassion for the Ogoni? Please.
Shell settled because they were scared, and they knew the evidence
against them was overwhelming. They publicly say they had nothing to do
with the execution of Ken Saro-Wiwa and the other Ogoni, and yet there
were documents and video that they fought hard to keep out of the public eye.
Evidence that was to be introduced in the case included an internal Shell memo
where the head of Shell Nigeria offered to intervene on Saro-Wiwa's
behalf, if only Saro-Wiwa and others would stop claiming that Shell had
made payments to the military.
Then there was this memo, requesting payment to the Nigerian military for an incident in which at least one Ogoni man died.
Witness were set to testify that they saw Shell vehicles
transporting Nigerian soldiers, that they saw Shell employees
conferring with the military, that they saw money being exchanged
between Shell employees and military officers, and that they heard
military officers, including the brutal Major Okuntimo of the Rivers
State Internal Security Task Force, make admissions regarding the work
they were doing on behalf of Shell.
We have known some of Shell's involvement in this tragedy for a long
time. In early May of 1994, Ken Saro-Wiwa Sr. faxed me a memo authored
by Major Okuntimo which read "Shell operations still impossible unless ruthless military operations are undertaken for smooth economic activities to commence" and further called for "pressure on oil companies for prompt regular inputs."
I received that fax and immediately called Ken. He said "this is it.
They're going to kill us all. All for Shell." It was the last time I
talked with him. Several weeks later he was arrested on the trumped up
charges for which he was ultimately hanged.
In the last day, lots of people have asked me if $15.5 million is
enough to compensate for the hanging of nine men, the death of
thousands more, and for the destruction of an ecosystem. No of course
not. But was it on par with what a jury would have awarded in this
case? Yes, lawyers tell me, for sure.
More importantly, does the settlement bring relief to Ken Wiwa Jr.
and the families of the other men who were executed? If you read Ken's thoughtful and moving piece in the Guardian , the answer is clearly yes. That alone should be cause for celebration.
Ken Sr.'s famous last words from the gallows were "lord take my soul
but the struggle continues." In this moment, perhaps more than ever
before, we need to heed that call to action. The settlement in this
case brings satisfaction to the plaintiffs for an event that happened
14 years ago. It in no way, shape or form excuses or absolves Shell of
their ongoing destruction of the Niger Delta environment.
One of the central complaints of Niger Delta communities for forty
years has been gas flaring, which sends plumes of toxic pollutants into
the air and water of the Niger Delta. Gas flaring endangers human
health, harms local ecosystems, emits huge amounts of greenhouse gases,
wastes vast quantities of natural gas, and is against Nigerian law.
Shell does it nowhere else in the world in volumes that are even
remotely comparable to what they flare in the Delta.
But Shell is still flaring gas in Nigeria.
While there is no doubt that the settlement represented a
significant victory for the plaintiffs' in this one human rights case
against Shell, true justice will not be served as long as the people of
Nigeria continue to suffer the terrible impact of Shell's operations.
Shell estimates it would cost about $3 billion -- only 10% of just
their last year's profits -- to end Shell's gas flaring in Nigeria once
and for all.
But instead of putting their great "humanitarian concern" into
action, Shell points the finger at the Nigerian government and demands
that they pay to end this practice.
Send a message to Shell's CEO
Jeroen van der Veer, and let him know that if he really wants to prove
his great concern for the Ogoni people, he'll end gas flaring once and
The struggle continues.
What's not in Chevron's annual report
Posted by Cameron Scott on May 26th, 2009
Originally posted at http://www.sfgate.com/cgi-bin/blogs/green/detail?entry_id=40674
When people with strong ideological perspectives are often outraged
by media coverage of their pet issues. When both sides are mad, you
know you're doing something right. But how often do you hear
corporations furious about they way they are covered in the business
section? The section seems to lend itself to favor-currying and
In the lead-up to Chevron's annual shareholders meeting tomorrow in San Ramon, the company landed a puff piece on KGO focusing on its efforts to decrease its water usage. No mention of the Amazon controversy, and no mention of outside pressure on Chevron, EBMUD's largest water user.
I'm disappointed to say that a Chronicle interview
with the company's top lawyer also softballs the issues, while giving
Chevron the opportunity to present its side of the story with no
opportunity for response from the company's many critics. [Update: Chron editors tell me there will be more coverage of Chevron later in the week.]
Well, Chevron's opponents, including San Francisco's Amazon Watch, have taken matters into their own hands, releasing an alternate annual report that presents the externalities
not listed in the company's balance sheet, which shows a record profit
of $24 billion, making the company the second most profitable in the
Did you know that Chevron's Richmond refinery was built in 1902 and emitted 100,000 pounds of toxic waste in 2007, consisting of no less than 38 toxic substances? The EPA ranks it as one of the worst refineries
in the nation. With 17,000 people living within 3 miles from the plant,
you'd think the San Ramon-based company would take local heat from more
than just a couple dozen activists.
Chevron has sought to brand itself an "energy" company, one eagerly pursuing alternatives to petroleum. Its aggressive "Will You Join Us?"
ad campaign asked regular folks to reduce their energy consumption,
suggesting that Chevron was doing the same. In actuality, the company
spent less than 3 percent of its whopping capital and
exploratory expenditures on alternative energy. And it has refused to
offer better reporting on its greenhouse gas emissions, despite strong
shareholder support for it. (The aggressive, and misleading, ad
campaign seems to have ired the report's researchers as well: The
report is decorated by numerous parodies, and some have been
wheat-pasted around town.)
It's a very well researched report, written by the scholar Antonia Juhasz,
clearly divided into regional issues, and it's a much needed
counterbalance to the friendly coverage Chevron is otherwise getting.
(Juhasz was interviewed on Democracy Now this morning.)
For information on protesting the shareholder meeting early tomorrow morning, click here.
Not Quite Beyond Petroleum
Posted by Philip Mattera on February 20th, 2009
For the past eight years, the oil giant formerly known as British
Petroleum has tried to convince the world that its initials stand for
“Beyond Petroleum.” An announcement just issued by the U.S.
Environmental Protection Agency may suggest that the real meaning of BP
is Brazen Polluter.
The EPA revealed
that BP Products North America will pay nearly $180 million to settle
charges that it has failed to comply with a 2001 consent decree under
which it was supposed to implement strict controls on benzene and
benzene-tainted waste generated by the company’s vast oil refining
complex in Texas City, Texas, located south of Houston. Since the
1920s, benzene has been known to cause cancer.
Among BP’s self-proclaimed corporate values
is to be “environmentally responsible with the aspiration of ‘no damage
to the environment’” and to ensure that “no one is subject to
unnecessary risk while working for the group.” Somehow, that message
did not seem to make its way to BP’s operation in Texas City, which has
a dismal performance record.
The benzene problem in Texas City was supposed to be addressed as part of the $650 million agreement
BP reached in January 2001 with the EPA and the Justice Department
covering eight refineries around the country. Yet environmental
officials in Texas later found that benzene emissions at the plant
remained high. BP refused to accept that finding and tried to stonewall
the state, which later imposed a fine of $225,000.
In March 2005 a huge explosion (photo) at the refinery killed 15
workers and injured more than 170. The blast blew a hole in a benzene
storage tank, contaminating the air so seriously that safety
investigators could not enter the site for a week after the incident.
BP was later cited for egregious safety violations and paid a record fine of $21.4 million. Subsequently, a blue-ribbon panel chaired by former secretary of state James Baker III found
that BP had failed to spend enough money on safety and failed to take
other steps that could have prevented the disaster in Texas City. Still
later, the company paid a $50 million fine as part of a plea agreement on related criminal charges.
In an apparent effort to repair its image, BP has tried to associate
itself with positive environmental initiatives. The company was, for
instance, one of the primary sponsors
of the big Good Jobs/Green Jobs conference held in Washington earlier
this month. Yet as long as BP operates dirty facilities such as the
Texas City refinery, the company’s sunburst logo, its purported
earth-friendly values and its claim of going beyond petroleum will be
nothing more than blatant greenwashing.
Originally posted at:
Dirt Diggers Digest is written by Philip Mattera, director of the Corporate Research Project, an affiliate of Good Jobs First.
The 10 Worst Corporations of 2008
Posted by on January 9th, 2009
What a year for corporate criminality and malfeasance!
As we compiled the Multinational Monitor list of the 10 Worst Corporations of 2008, it would have been easy to restrict the awardees to Wall Street firms.
But the rest of the corporate sector was not on good behavior during
2008 either, and we didn't want them to escape justified scrutiny.
So, in keeping with our tradition of highlighting diverse forms of
corporate wrongdoing, we included only one financial company on the 10
Here, presented in alphabetical order, are the 10 Worst Corporations of 2008.
AIG: Money for Nothing
There's surely no one party responsible for the ongoing global
financial crisis. But if you had to pick a single responsible
corporation, there's a very strong case to make for American
International Group (AIG), which has already sucked up more than $150
billion in taxpayer supports. Through "credit default swaps," AIG
basically collected insurance premiums while making the ridiculous
assumption that it would never pay out on a failure -- let alone a
collapse of the entire market it was insuring. When reality set in, the
roof caved in.
Cargill: Food Profiteers
When food prices spiked in late 2007 and through the beginning of 2008,
countries and poor consumers found themselves at the mercy of the
global market and the giant trading companies that dominate it. As
hunger rose and food riots broke out around the world, Cargill saw
profits soar, tallying more than $1 billion in the second quarter of
In a competitive market, would a grain-trading middleman make
super-profits? Or would rising prices crimp the middleman's profit
margin? Well, the global grain trade is not competitive, and the legal
rules of the global economy-- devised at the behest of Cargill and
friends -- ensure that poor countries will be dependent on, and at the
mercy of, the global grain traders.
Chevron: "We can't let little countries screw around with big companies"
In 2001, Chevron swallowed up Texaco. It was happy to absorb the
revenue streams. It has been less willing to take responsibility for
Texaco's ecological and human rights abuses.
In 1993, 30,000 indigenous Ecuadorians filed a class action suit in
U.S. courts, alleging that Texaco over a 20-year period had poisoned
the land where they live and the waterways on which they rely, allowing
billions of gallons of oil to spill and leaving hundreds of waste pits
unlined and uncovered. Chevron had the case thrown out of U.S. courts,
on the grounds that it should be litigated in Ecuador, closer to where
the alleged harms occurred. But now the case is going badly for Chevron
in Ecuador -- Chevron may be liable for more than $7 billion. So, the
company is lobbying the Office of the U.S. Trade Representative to
impose trade sanctions on Ecuador if the Ecuadorian government does not
make the case go away.
"We can't let little countries screw around with big companies like
this -- companies that have made big investments around the world," a
Chevron lobbyist said to Newsweek in August. (Chevron subsequently
stated that the comments were not approved.)
Constellation Energy: Nuclear Operators
Although it is too dangerous, too expensive and too centralized to make
sense as an energy source, nuclear power won't go away, thanks to
equipment makers and utilities that find ways to make the public pay
Constellation Energy Group, the operator of the Calvert Cliffs nuclear
plant in Maryland -- a company recently involved in a startling,
partially derailed scheme to price gouge Maryland consumers -- plans to
build a new reactor at Calvert Cliffs, potentially the first new
reactor built in the United States since the near-meltdown at Three
Mile Island in 1979.
It has lined up to take advantage of U.S. government-guaranteed loans
for new nuclear construction, available under the terms of the 2005
Energy Act. The company acknowledges it could not proceed with
construction without the government guarantee.
CNPC: Fueling Violence in Darfur
Sudan has been able to laugh off existing and threatened sanctions for
the slaughter it has perpetrated in Darfur because of the huge support
it receives from China, channeled above all through the Sudanese
relationship with the Chinese National Petroleum Corporation (CNPC).
"The relationship between CNPC and Sudan is symbiotic," notes the
Washington, D.C.-based Human Rights First, in a March 2008 report,
"Investing in Tragedy." "Not only is CNPC the largest investor in the
Sudanese oil sector, but Sudan is CNPC's largest market for overseas
Oil money has fueled violence in Darfur. "The profitability of Sudan's
oil sector has developed in close chronological step with the violence
in Darfur," notes Human Rights First.
Dole: The Sour Taste of Pineapple
A 1988 Filipino land reform effort has proven a fraud. Plantation
owners helped draft the law and invented ways to circumvent its
purported purpose. Dole pineapple workers are among those paying the
Under the land reform, Dole's land was divided among its workers and
others who had claims on the land prior to the pineapple giant.
However, wealthy landlords maneuvered to gain control of the labor
cooperatives the workers were required to form, Washington, D.C.-based
International Labor Rights Forum (ILRF) explains in an October report.
Dole has slashed it regular workforce and replaced them with contract
Contract workers are paid under a quota system, and earn about $1.85 a day, according to ILRF.
GE: Creative Accounting
In June, former New York Times reporter David Cay Johnston reported on
internal General Electric documents that appeared to show the company
had engaged in a long-running effort to evade taxes in Brazil. In a
lengthy report in Tax Notes International, Johnston reported on a GE
subsidiary's scheme to invoice suspiciously high sales volume for
lighting equipment in lightly populated Amazon regions of the country.
These sales would avoid higher value added taxes (VAT) in urban states,
where sales would be expected to be greater.
Johnston wrote that the state-level VAT at issue, based on the internal
documents he reviewed, appeared to be less than $100 million. But, he
speculated, the overall scheme could have involved much more.
Johnston did not identify the source that gave him the internal GE
documents, but GE has alleged it was a former company attorney, Adriana
Koeck. GE fired Koeck in January 2007 for what it says were
Imperial Sugar: 14 Dead
On February 7, an explosion rocked the Imperial Sugar refinery in Port
Wentworth, Georgia, near Savannah. Days later, when the fire was
finally extinguished and search-and-rescue operations completed, the
horrible human toll was finally known: 14 dead, dozens badly burned and
As with almost every industrial disaster, it turns out the tragedy was
preventable. The cause was accumulated sugar dust, which like other
forms of dust, is highly combustible.
A month after the Port Wentworth explosion, Occupational Safety and
Health Administration (OSHA) inspectors investigated another Imperial
Sugar plant, in Gramercy, Louisiana. They found 1/4- to 2-inch
accumulations of dust on electrical wiring and machinery. They found as
much as 48-inch accumulations on workroom floors.
Imperial Sugar obviously knew of the conditions in its plants. It had
in fact taken some measures to clean up operations prior to the
explosion. The company brought in a new vice president to clean up
operations in November 2007, and he took some important measures to
improve conditions. But it wasn't enough. The vice president told a
Congressional committee that top-level management had told him to tone
down his demands for immediate action.
Philip Morris International: Unshackled
The old Philip Morris no longer exists. In March, the company formally
divided itself into two separate entities: Philip Morris USA, which
remains a part of the parent company Altria, and Philip Morris
International. Philip Morris USA sells Marlboro and other cigarettes in
the United States. Philip Morris International tramples the rest of the
Philip Morris International has already signaled its initial plans to
subvert the most important policies to reduce smoking and the toll from
tobacco-related disease (now at 5 million lives a year). The company
has announced plans to inflict on the world an array of new products,
packages and marketing efforts. These are designed to undermine
smoke-free workplace rules, defeat tobacco taxes, segment markets with
specially flavored products, offer flavored cigarettes sure to appeal
to youth and overcome marketing restrictions.
Roche: "Saving lives is not our business"
The Swiss company Roche makes a range of HIV-related drugs. One of them
is enfuvirtid, sold under the brand-name Fuzeon. Fuzeon brought in $266
million to Roche in 2007, though sales are declining.
Roche charges $25,000 a year for Fuzeon. It does not offer a discount price for developing countries.
Like most industrialized countries, Korea maintains a form of price
controls -- the national health insurance program sets prices for
medicines. The Ministry of Health, Welfare and Family Affairs listed
Fuzeon at $18,000 a year. Korea's per capita income is roughly half
that of the United States. Instead of providing Fuzeon, for a profit,
at Korea's listed level, Roche refuses to make the drug available in
Korean activists report that the head of Roche Korea told them, "We are
not in business to save lives, but to make money. Saving lives is not
Originally posted on December 29, 2008, at:
Robert Weissman is managing director of the Multinational Monitor.
Disclosure Issues Bedevil Climate-Change Debate
Posted by Philip Mattera on July 8th, 2008
Big business is talking more these days about the need to reduce
greenhouse gas (GHG) emissions. Even long-time global warming denier
Exxon Mobil feels the need to publicize
what it is doing in this regard. Claims of reductions in GHG are not,
however, meaningful unless those emissions are being estimated
consistently to begin with.
A study issued yesterday by the Ethical Corporation Institute raises
questions about how much we really know about the volume of GHG being
generated by large corporations. According to a press release about the report
(which is available only to those willing to fork over more than 1,000
euros), there are “staggering inconsistencies in how companies
calculate and verify their greenhouse gas emissions.” The report found,
for instance, that companies responding to the fifth annual Carbon Disclosure Project
questionnaire used more than 30 different protocols or guidelines in
preparing their emissions estimates. The report, it appears, surveys
this potpourri of measurement techniques but does not attempt to
resolve the differences.
The absence of consistency has not prevented the Carbon Disclosure
Project from trying to use current reporting to understand the larger
framework of GHG trends. In May, the Project issued the first results of its Supply Chain Leadership Collaboration,
an initiative in which large companies such as Nestlé, Procter &
Gamble and Unilever urge their suppliers to report on their own carbon
footprint. It is unclear how much effort is made to ensure these
results are reported in a uniform manner.
Along with the need for improved GHG reporting, there are growing calls for companies to disclose the liability risks
(and opportunities, if any) associated with those emissions. Recently,
a broad coalition of institutional investors and major environmental
groups once again urged
the U.S. Securities and Exchange Commission to clarify the obligations
of publicly traded companies to assess and fully disclose the legal and
financial consequences of climate change. The statement was aimed at
reinforcing a petition filed with the SEC last year on climate-change
Climate-change liability risks no longer exist just in the realm of the theoretical. Lawsuits
have been filed against the major oil companies for conspiring to
deceive the public about climate change—including one brought in the
name of Eskimo villagers in Alaska who are being forced to relocate
their homes because of flooding said to be caused by global warming.
Famed climate scientist James Hansen recently declared
at a Capitol Hill event that oil and coal company executives could be
guilty of “crimes against humanity.” If that isn’t a risk worth
reporting, what is?
Dirt Diggers Digest is written by Philip Mattera, director of the Corporate Research Project, an affiliate of Good Jobs First.
2008 Public Eye Awards
Posted by Pratap Chatterjee on September 27th, 2007
Which are the world's worst multinationals? Which are the best? These are questions CorpWatch gets asked practically everyday. Just to clarify, we do not rank good corporations or endorse any of them, for several reasons: today's idols sometimes turn out to have feet of clay. And we see our job as investigators of malfeasance. For those who want to do the opposite, there are plenty of groups out there who promote "socially responsible" businesses, and we encourage you to look them up. (We don't have a list of these groups for the aforementioned reasons, but we do have a guide to the principles that we believe good businesses should follow -- and we leave it to you, our gentle readers, to apply this criteria to evaluate corporations.)
(We strongly believe that it is very important not to take corporate claims at face value, because sometimes these companies are not telling the whole truth. This is known as "greenwash" and to see a history of this phenomenon, we urge you to check out our short history of the subject, in this handy guide written by Josh Karliner, the founder of CorpWatch.)
Today, there is an opportunity for you to get your favorite (or maybe, least favorite) multinational nominated for an award for corporate malfeasance -- the Berne Declaration and Friends of the Earth Switzerland are holding its fourth annual award ceremony in January 2008, to coincide with the annual gathering of Fortune 500 chieftains in Davos. You can take part in this contest by clicking here.
(Previous winners from 2005, 2006 and 2007 are available online.)
If you have questions, contact Oliver Classen who is coordinating the awards ceremony.
In case you are wondering, how do you find out whether companies are telling the truth? Well, here's a tip -- there's a group in the Netherlands that collects these reports: the Global Reporting Intitiative. You can even search their database to look up your favorite/least favorite company. GRI is about to launch a tool on October 1st, 2007 that will allow you to rank these reports -- if you are so inclined.
Read the reports, search our website and that of Multinational Monitor, and then contact groups on the ground to see if these companies are telling the truth or not.
Remember the deadline to nominate a company for the Public Eye on Davos award is September 30th, 2007!
CorpWatch stories on Iraq & New Mexico get mainstream coverage
Posted by Pratap Chatterjee on July 27th, 2007
We're gratified to see that the U.S. Congress and the mainstream media are picking up on some of the issues that CorpWatch has been digging into over the last couple of years. For example, there was a hearing on July 26th, 2007 in Representive Waxman's committee (the House Oversight and Government Reform Committee) on a topic that CorpWatch broke a year ago February: the use of trafficked Asian labor to build the US Embassy in Baghdad.
Our original story can be seen here:
Baghdad Embassy Bonanza
Kuwait Company's Secret Contract & Low-Wage Labor
by David Phinney, Special to CorpWatch
February 12th, 2006
The two witnesses who testified yesterday were first featured in an extensive CorpWatch article in October 2006.
See A U.S. Fortress Rises in Baghdad:
Asian Workers Trafficked to Build World's Largest Embassy
by David Phinney, Special to CorpWatch
October 17th, 2006
To read the article from today's Washington Post about yesterday's hearing, go here:
Foreign Workers Abused at Embassy, Panel Told
By William Branigin, Washington Post
Friday, July 27th, 2007
In related matters, we're also pleased to see that the Special Inspector General for Iraq Reconstruction (SIGIR) has been looking into why Bechtel did such a bad job in Iraq. (Answer: the fault lies quite heavily with the way that the U.S. government managed the contract.) Good coverage of the SIGIR report can be found in yesterday's New York Times.
IRAQ: Bechtel Meets Goals on Fewer Than Half of Its Iraq Rebuilding Projects, U.S. Study Finds
By James Glanz, New York Times
July 26, 2007
But one thing: we'd like to note that SIGIR only looked at the second phase of Bechtel's work, what about the first phase? We ran a story on this some 40 months ago:
Bechtel Fails Reconstruction of Iraq's Schools
by Karim El-Gawhary, Special to CorpWatch
December 2nd, 2003
Back on the U.S. home front we are also glad to see that the New York Times is following the story of the Sithe Global Power's proposed coal-fired power plant at Desert Rock in New Mexico on Diné lands:
Navajos and Environmentalists Split on Power Plant
By Felicity Barringer, New York Times
July 27th, 2007
To get a better feel for how the company has divided the traditional Diné community, do read our story from April of this year:
Speaking Diné to Dirty Power: Navajo Challenge New Coal-Fired Plant
by Jeff Conant, Special to CorpWatch
April 3rd, 2007
Is Houston smarter than Detroit? Big Oil versus Big Auto (and a simple solution for global warming)
Posted by Pratap Chatterjee on February 17th, 2007
US car makers and the US oil industry appear to be speeding in opposite directions in what may seem like a complete paradox. Just as companies like Chevron, Exxon and Shell announce the highest profits of any company in history, Chrysler, Ford and General Motors sales are in free fall. Is the oil industry in Houston is smarter than the car industry in Detroit?
Ford announced a global loss of $12.7 billion last year. The company plans to close 16 plants and cut up to 45,000 jobs in North America. Chrysler made a $1.5 billion loss last year and just announced it will cut 13,000 jobs. General Motors cut 35,000 production jobs last year but is suggesting it might have turned a profit after losing $10.6 billion in 2005. (The company "found" $200 million in earnings previously unaccounted for between 2002 and 2006, according to a Friday filing with the Securities and Exchange Commission. But given that it has restated its results seven times in the last two years, the numbers maybe rather meaningless.)
So it may seem astonishing that the Big Three's twin brother - Big Oil - is making money hand over fist. Chevron profits totaled $17.14 billion in 2006, Exxon made $39.5 billion (the highest any company has ever made in history) and Shell made $25.4 billion.
That adds up to $82 billion, three times greater than the losses of the Big Three car companies!
What's the difference between the two industries? Those of us that live in North America know exactly why: the price of gasoline has soared since the invasion of Iraq, and the oil companies have taken advantage of the high prices to cut themselves a bigger piece of the pie. Consumers don't have a choice as the oil industry is an oligopoly.
On the other hand the car industry is much more competitive, so consumers do have some choice.
Instead of buying giant cars that consume more gasoline than the original Model T Ford made in 1908 (the energy efficiency of a Ford Explorer is 16 miles per gallon versus the 25 miles per gallon of the signature Ford car), US consumers have made the cheaper choice and bought Japanese-made cars.
Japanese car maker profits are in stark contrast with the Big Three. Toyota is expecting a $13.4 billion profit for the fiscal year ending next month while Honda is predicting 2006 profits to come in close to $5 billion.
Ten years ago, General Motors controlled about a third of the U.S. market while Toyota's share was closer to eight percent. As General Motors has lost about eight percent of the market, Toyota has gained about the same.
(Another major difference between the two companies: General Motors expects to pay $50 billion in health care costs for its retired workers, while Toyota's Japanese workers are covered by a government health care system.)
Simple, isn't it? Energy conscious vehicles could turn around the US car makers and government provided health care for workers could cut Detroit's losses.
Yet, that would not solve all our problems. Even if the Big Three are losing market share, U.S. citizens are still buying cars that emit greenhouses gases and contribute to global warming. The latest figures show that U.S. greenhouse gas emissions during 2004 increased by 1.7 percent from the previous year, according to the U.S. Environmental Protection Agency (EPA), which released the figures last April. This was the largest annual amount ever produced by any country on record.
Perhaps the price of gasoline is still far too low? If doubling the price of gas has crushed the once mighty U.S. car industry, what if prices were to double again? People might start shopping close by, taking buses and trains to work. New jobs would be created by small local businesses for all those Wal-Mart employees and out-of-work Big Three employees.
Toyota and Honda might have to give way to a bus system or railways! Gasp! How archaic! How could the U.S. pay for a new mass transit system? Well, I heard some folks in Houston just found $82 billion... and the Japanese car makers have another $17 billion. that could pay for a lot. (That's not their money, its money taken out of the pockets of consumers who had no choice)
The U.S. needs mass transportation - and it needs to stop sprawl - lessons on how to do this can be found anyway outside the borders of this country when people live, work and shop in communities and take bicycles, buses and trains to work.
If commuters in the U.S. were to stop driving altogether, we could slash global fossil fuel emissions by 25 percent. Now that would be a revolution, and it would reverberate through history. How America saved the world it might even surpass Superman as a story for ages to come! If not, there won't be much more history to write. But that final page in human history might record that the U.S. failed to act.
P.S. I hear that Richard Branson and Al Gore are offering a $25 million reward for a solution to global warming. You can write that check out to groups like Smart Growth America and Surface Transportation Policy Project. They have the answers to global warming.
Remembering Oil Spills, Old and New
Posted by Sakura Saunders on February 13th, 2007
The week opened with the start of a four month trial against France's oil giant, Total, by groups like Friends of the Earth France.
The Paris tribunal will examine the 1999 Erika tanker disaster that poured 20,000 tonnes of oil into the sea, polluted 250 miles of coastline and caused $1.3 billion in damage. At least 150,000 seabirds were found dead on the coast and up to 10 times as many were probably lost in the oil-blackened seas. Observers say this may also turn into a trial of the "globalized" international shipping system as the Erika was crewed by Indians, sailing under a Maltese flag, chartered by a shipping company registered in the Bahamas for a French oil company.
Meanwhile, a lawsuit between the state of New York against Exxon and four other companies has recently been announced. This suit addresses an oil spill from the 1950's that was several times the size of the Exxon Valdez oil leak in Alaska, but lay undiscovered until 1978. According to New York state attorney Andrew Cuomo, Exxon has been slow to clean up, with an estimated eight million gallons of oil and petroleum byproducts still underground and toxic vapors from the ground threatening neighborhood health.
A Bloomberg article quotes local residents:
"There are people who live above this that still don't know about it,'' said Basil Seggos, chief investigator for Riverkeeper, an environmental group that sued in 2004 to try to force Exxon Mobil to clean up the creek. Others in Greenpoint have become spill experts, according to Seggos, and they say the fumes that rise from basements and sewers are especially bad when the barometer drops before a storm. "The locals tell you they know when it's going to rain because they can smell the oil.''
In other oil spill news, Lagos' Vanguard newspaper reported today that ten Ijaw communities had been displaced and 500 made homeless by a Chevron Nigeria oil spill.
The report quotes Gbabor Okrika, the councilor representing the affected communities:
"Chevron is not bothered about the health of the people they are only concerned about their operations and they have now started a process that can only divide the people and create further division among them."
Also, last month's massive leak in the Chad Cameroon Pipeline caused a storm of criticism regarding the environmental safety of this project. This Exxon-managed pipeline extends from landlocked Chad through Cameroon and extends 11 kilometers off the coast into the Atlantic. This project, which is overseen by the World Bank, has already received much criticism due to money from this project fueling conflict in Chad.
IRIN News quoted Kribi Mayor Gregoire Mba Mba:
"Our town lives on fishing and tourism. If more incidents like this or worse occur it is the economic future of the town that is threatened."
Environmental groups are warning that a similar spill could happen in the Baku-Ceyhan pipeline operated by BP that transports crude 1750 kilometers from the Caspian to the Mediterranean Sea. On Monday, a coalition of Azeri, British and US watchdog groups leaked a report from the U.S. Overseas Private Investment Corporation, which says that cracks and leakages in the coating of the pipeline will need to be monitored closely.
Beyond We Told You So
Posted by on August 24th, 2006
John Kenney, a former advertising guy, wrote an op-ed entitled "Beyond Propaganda" last week in the The New York Times about his disillusionment upon finally accepting that the new company name and identity for BP he helped create – "Beyond Petroleum" to replace "British Petroleum"– has turned out to be just so much bunkum designed to make a dirty oil company look environmentally friendly on TV, while it's busy drilling for ever more petroleum and spilling billions of gallons all over Alaska.
Its nice to know there are (or were) still idealists in the ad business, people who believe their job can be something noble instead of public deceipt and manipulation. And kind of sad he was so naive.
We at CorpWatch, however, have always been cynical enough to see through obvious rebranding. Way back in 200, we wrote this about BP's new image: "British Petroleum: Beyond Pompous, Beyond Protest,
Beyond Pretension, Beyond Preposterous, Beyond Platitudes, Beyond
Posturing, Beyond Presumptuous, Beyond Propaganda... Beyond Belief."
Ding Dong ...
Posted by Brooke Shelby Biggs on July 6th, 2006
I admit when I heard that Ken Lay had died, I sat bolt upright in bed and then wondered what to think. No more. The bastard flipped America - and especially the thousands of peniless ex-Enron employees, and the entire state of California - a final bird. Not a day in jail. Not another penny to the people he stole from.
Perhaps what shocked me most was the discovery that the convicted felon was at home in Aspen, Colorado when he died, out on a $5 million bond while awaiting sentencing. How, I wondered, could this little man who claimed to be $250,000 in debt, be living so high, just a month post-conviction? Ah, the American legal system. Had Lay been, say, an African American looter in New Orleans, he'd have died in a rat-infested cell.
And, lookee here: poor, poor Kenny-Boy had a Goldman Sachs investment account worth over $6 million when he died. Woe was he, indeed.
Now we learn that the civil suits aimed at collecting some of Lay's ill-gotten assets for the benefit of those bilked by his scheming may be dropped. Lay's wife, who stands to inherit the estate, will likely keep it all. This is the woman who staged the most grotesque PR stunt ever when she opened a second-hand store (called, repulsively, "Jus' Stuff" to sell of trinkets from the Lays' 15 homes, claiming she was destitute.
It is infuriating, particularly if you don't believe in karma, or hell, or any other means of divine retribution available after the grave. It almost makes you believe he died on purpose.