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Thu, 2015-04-09 04:58Mike Gaworecki
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Chevron Whistleblower Videos Show Deliberate Falsification Of Evidence In Ecuador Oil Pollution Trial

Chevron has already lost the lawsuit filed against the company by a group of Indigenous villagers and rural Ecuadorians who say Texaco, which merged with Chevron in 2001, left behind hundreds of open, unlined pits full of toxic oil waste it had dug into the floor of the Amazon rainforest.

That hasn’t stopped the oil titan from attempting to retry the case, though, in both the court of public opinion and a New York court, where it counter-sued the Ecuadorian plaintiffs under the RICO Act, claiming their original lawsuit was nothing more than extortion.

But new videos released by an anonymous Chevron whistleblower undermine the company’s entire defense in the original suit as well as its RICO counterattack.

Chevron’s defense in the Ecuador pollution case hinges on the company’s assertion that, before leaving the country when its partnership with state-owned Petroecuador ended in the early 1990s, Texaco remediated a portion of the 350 drill sites and more than 900 associated waste pits, as per its agreement with the Ecuadorean government.

The Ecuadorian plaintiffs argue that, as the sole operator of those drilling operations, Chevron/Texaco is liable for the carcinogenic oil contamination of watercourses, soil and groundwater that leached out of the waste pits and overflowed into local streams and rivers. After inheriting Texaco’s liability, Chevron countered that it had fulfilled its obligations per the terms of its partnership and that the plaintiffs’ real target should be Petroecuador, which Chevron blames for the pollution.

In 2011, Chevron lost the court battle in Ecuador — the venue Chevron itself chose — and was ordered to pay $9.5 billion to clean up its oil pollution in the Amazon. But Chevron had already infamously vowed “We will fight until hell freezes over and then fight it out on the ice,” and the company has been true to its word. Only now has evidence emerged to show just how dirty Chevron was fighting.

“These videos prove Chevron knew full well their ‘remediated’ sites were still contaminated before the trial in Ecuador had even finished,” Amazon Watch’s Paul Paz said in a statement to DeSmogBlog. “Rather than admit that and help people who would be affected, they hid what they knew and denied it to the courts and to the world. Worse than that, they went on to blame the very same people affected by their waste as making it all up to extort money from Chevron.”

Sun, 2015-03-22 18:40Steve Horn
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Global Shale Fail: Oil Majors Leaving Fracking Fields Across Europe, Asia

With some analysts predicting the global price of oil to see another drop, many oil majors have deployed their parachutes and jumped from the hydraulic fracturing (“fracking”) projects rapidly nose-diving across the world.

As The Wall Street Journal recently reported, the unconvetional shale oil and gas boom is still predominantly U.S.-centric, likely to remain so for years to come.

“Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China,” wrote The Wall Street Journal.

“Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.” 

Though the fracking boom has taken off in the U.S. like no other place on Earth, the U.S. actually possesses less than 10 percent of the world’s estimated shale reserves, according to The Journal.

Despite this resource allotment discrepency, the U.S. Energy Information Administration (EIA) recently revealed that only four countries in the world have produced fracked oil or gas at a commercial-scale: the United States, Canada, China and Argentina.

Global Shale Fail
Image Credit: U.S. Energy Information Administration

Wed, 2015-02-11 00:08Brendan Montague
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You'll Never Guess Who Attended Britain's First Major Climate Denial Conference

DeSmog UK’s epic history series looks back at the conference that marked the first major event where climate sceptic views were promoted in England.

This year marks the 20th anniversary of Britain's first major climate denial conference. You'll never guess who attended – and who paid for it.

In October 1995, John Blundell – the newly appointed director of free market think tank the Institute of Economic Affairs (IEA) – opened his second major conference Environmental Risk: Perception and Reality at the four-star Stakis St Ermin's Hotel on Caxon Street in London.

The advertised speakers included Blundell’s old friend Fred Smith, the founder of the Koch-funded Competitive Enterprise Institute (CEI), who had flown over from the United States along with the coal-funded sceptic scientist Dr Patrick Michaels.

Sat, 2015-01-31 06:00Mike Gaworecki
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Fracking Failure: Frackers In Pennsylvania Violate Health And Environmental Regulations On A Daily Basis

From the American Petroleum Institute’s claim that fracking is “safely unlocking vast U.S. reserves of oil and natural gas” to Chris “Frack Master” Faulkner himself insisting “fracking isn’t contaminating anything,” the oil and gas industry constantly tells us that fracking can be done safely, despite plenty of evidence to the contrary.

But just to be sure the public understands how seriously they considered public health, a group of oil and gas companies fracking in Pennsylvania formed the Center for Sustainable Shale Development in 2013. According to its website, CSSD is dedicated to “the development of rigorous performance standards for sustainable shale development and a commitment to continuous improvement to ensure safe and environmentally responsible development of our abundant shale resources.”

“Rigorous performance standards for sustainable shale development” certainly sounds great. The only problem is, none of the four companies that founded CSSD — Chevron Appalachia, Consol Energy, EQT Production and Shell — seems to have actually adhered to those standards.

According to a new report by Environment America titled “Fracking Failures: Oil and Gas Industry Environmental Violations in Pennsylvania and What They Mean for the U.S.,” ever since those four companies “told the public they would adhere to higher standards” in 2013, they have collectively committed as many as 100 violations of Pennsylvania’s existing oil and gas regulations.

Mon, 2014-12-15 10:00Mike Gaworecki
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Climate Legacy: Report Offers Stark Reminder Why Fossil Fuel Industry Is So Intent To Avoid Accountability For Pollution

If the governments of the world get serious about tackling climate change and adopt aggressive limits on global warming emissions, many fossil fuel companies’ could see their assets become stranded, forcing them to fundamentally change their business models or go out of business altogether.

But there’s another reason why those companies are so desperate to forestall any and all attempts to rein in climate emissions by holding polluters accountable: fossil fuels companies themselves are responsible for a massive amount of the greenhouse gases cooking our climate.

The Climate Accountability Institute has updated its Carbon Majors Project in time for the climate talks in Lima, Peru, “detailing the direct and product-related emissions traced to the major industrial carbon producers in the oil, natural gas, coal, and cement industries” through 2013. CAI has found that the carbon-based fossil fuels and cement produced by just 90 entities were responsible for 65% of the 1,443 billion metric tonnes of CO2 emitted between 1751, the dawn of the industrial era, and 2013.

Some 50 investor-owned companies are among the 90 entities on the Carbon Majors list, and they are collectively responsible for nearly 22% of all global warming emissions up to 2013, while the 36 state-owned companies on the list are responsible for another 20%.

Sun, 2014-11-09 15:23Carol Linnitt
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DeSmogCAST Episode 2: Midterm Elections Fallout, #KMFACE and the Fossil Fuel Industry in Kids' Classrooms

This week’s episode of DeSmogCAST covers the fallout of the U.S. midterm elections and what a GOP-led Congress will mean for climate action and the Keystone XL pipeline.

Hosted by DeSmogBlog contributor Farron Cousins, our DeSmog cast – featuring Carol Linnitt, Brendan DeMelle and Steve Horn – also takes a look at fracking bans in several U.S. states, the hilarious success of the #KMFACE campaign, and the importance of community organizing in the face of growing fossil fuel influence in our lives. We discuss Chevron’s ‘Fuel Your Schools’ campaign currently taking place in schools around Vancouver’s lower mainland.

Mon, 2014-10-20 14:57Justin Mikulka
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Natural Gas as 'Bridge Fuel' Is Excellent Political Solution But Fails As Climate Solution

Fracking for natural gas

“We cannot solely rely on abundant gas to solve the climate change problem. The climate change problem requires a climate change solution. Abundant gas could be great for any number of things, but it is not going to solve the climate change problem.”

This statement was made by Haewon McJeon, the lead author on a new study published last week by Nature magazine, which concluded that cheap abundant natural gas will actually delay any efforts to reduce carbon emissions.

This isn’t the first study to reach this conclusion. In the 2013 study “Climate Consequences of Natural Gas as a Bridge Fuel,” author Michael Levi reached a similar conclusion. He noted that for natural gas to be beneficial as a bridge fuel it had to be a short bridge with gas consumption peaking by 2020 or 2030.

The new study, Limited Impact on Decadal-Scale Climate Change from Increased Use of Natural Gas, looks at natural gas consumption increasing through 2050.

Tue, 2014-10-14 13:35Steve Horn
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Tar Sands Trade: Kuwait Buys Stake in Alberta As It Opens Own Heavy Oil Spigot

Chevron made waves in the business world when it announced its October 6 sale of 30-percent of its holdings in the Alberta-based Duvernay Shale basin to Kuwait Foreign Petroleum Exploration Company (KUFPEC) for $1.5 billion.

It marked the first North American purchase for the Kuwaiti state-owned oil company and yields KUFPEC 330,000 acres of Duvernay shale gas. Company CEO and the country's Crown Prince, Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah, called it an “anchor project” that could spawn Kuwait's expansion into North America at-large. 

Kuwait's investment in the Duvernay, at face-value buying into Canada's hydraulic fracturing (“fracking”) revolution, was actually also an all-in bet on Alberta's tar sands. As explained in an October 7 article in Platts, the Duvernay serves as a key feedstock for condensate, a petroleum product made from gas used to dilute tar sands, allowing the product to move through pipelines. 

And while Kuwait — the small Gulf state sandwiched between Iraq and Saudi Arabia — has made a wager on Alberta's shale and tar sands, Big Oil may also soon make a big bet on Kuwait's homegrown tar sands resources.

“Kuwait has invited Britain’s BP, France’s Total, Royal Dutch Shell, ExxonMobil and Chevron, to bid for a so-called enhanced technical service agreement for the northern Ratqa heavy oilfield,” explained an October 2 article in Reuters. “It is the first time KOC will develop such a big heavy oil reservoir and the plan is to produce 60,000 bpd from Ratqa, which lies close to the Iraqi border [in northern Kuwait]…and then ramp it up to 120,000 bpd by 2025.”

In the past, Kuwait has said it hopes to learn how to extract tar sands from Alberta's petroleum engineers.

Thu, 2014-08-28 11:06Steve Horn
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Obama Opened Floodgates for Offshore Fracking in Recent Gulf of Mexico Lease

In little-noticed news arising out of a recent Gulf of Mexico offshore oil and gas lease held by the U.S. Department of Interior's Bureau of Ocean Energy Management, the floodgates have opened for Gulf offshore hydraulic fracturing (“fracking”).

With 21.6 million acres auctioned off by the Obama Administration and 433,822 acres receiving bids, some press accounts have declared BP America — of 2010 Gulf of Mexico offshore oil spill infamy — a big winner of the auction. If true, fracking and the oil and gas services companies who perform it like Halliburton, Baker Hughes and Schlumberger came in a close second.

Gulf of Mexico Oil Lease Map August 2014
Map Credit: U.S. Bureau of Ocean Energy Management

On the day of the sale held at the Superdome in New Orleans, Louisiana, an Associated Press article explained that many of the purchased blocks sit in the Lower Tertiary basin, coined the “final frontier of oil exploration in the Gulf of Mexico” by industry analysts.

“The Lower Tertiary is an ancient layer of the earth's crust made of dense rock,” explained APTo access the mineral resources trapped within it, hydraulic fracturing activity is projected to grow in the western Gulf of Mexico by more than 10 percent this year, according to Houston-based oilfield services company Baker Hughes Inc., which operates about a third of the world's offshore fracking rigs.”

Wed, 2014-08-13 11:15Justin Mikulka and Steve Horn
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Rail CEOs to Investors: "Bomb Trains" Safe At Almost Any Speed

Burlington Northern Santa Fe (BNSF) recently said it would proceed with plans to increase speeds for oil-by-rail unit trains in Devil’s Lake, N.D. to 60 MPH from 30 MPH, despite opposition from local officials

BNSF’s announcement came merely a week after the Obama Administration announced its proposed regulations for trains carrying oil obtained via hydraulic fracturing (“fracking”) from North Dakota's Bakken Shale basin.  

The rail industry’s position on speed limits for “bomb trains” is simple: they continuously claim velocity has nothing to do with oil-by-rail accidents or safety.

For example, Big Rail — as revealed by DeSmogBlog — lobbied against all proposed oil train speed reductions in its dozen or so private meetings at the Obama White House before the unveiling of the proposed oil-by-rail regulations. 

Recent statements by rail industry CEOs during investor calls put the heads of many companies on record opposing oil-by-rail speed limits for the first time.

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