Archive for the ‘Environment’ Category

Pitting Jobs Against the Environment Again

Thursday, August 3rd, 2017

Jobs versus the environment: The notion that the interests of workers were inherently anti-ecological was widely held in the 1980s. Much of the world now accepts that employment and environmental protection can go hand in hand, but the Trump Administration is trying hard to turn back the clock. Dismantling safeguards is presented as the key to job creation.

That same misguided approach can be seen in the terms of the deal that Wisconsin’s Gov. Scott Walker is offering the Taiwanese electronics firm Foxconn in exchange for a commitment to build a $10 billion flat-screen plant that will supposedly create up to 13,000 jobs.

The plan — which Walker announced at the White House along with Trump, Vice President Pence and  Speaker Paul Ryan, whose district is expected to be the site of the facility — is generating a great deal of controversy in Wisconsin over the $3 billion subsidy package the governor wants to offer the company.

Yet those special tax breaks are not the only incentive being dangled in front of Foxconn. The draft bill being considered by the state legislature would also free the company from having to file an environmental impact statement and exempt it from a variety of state environmental rules. It would also ease regulations for utilities that build facilities inside the special zone that would be created for Foxconn.

Environmental groups in the Badger State are sounding the alarm, but there is no indication that their concerns are having much of an impact on Walker, who has said that critics of the Foxconn deal can go “suck lemons.”

The special regulatory breaks Wisconsin has cooked up would be troubling in any project, but they are especially worrisome in this deal, given the company involved. It’s widely known that Foxconn has a lousy record on labor rights in Asia, but it also has a troubled history when it comes to the environment.

In 2011 a coalition of Chinese environmental groups published a report listing Foxconn as one of several Apple contractors whose operations were causing serious environmental damage. Two years later, the watchdogs released a film with footage they said showed Foxconn releasing water with high levels of heavy metals into a river feeding Shanghai’s Huangpu River.

Foxconn was also said to be lax when it came to workplace safety. An explosion at its iPad plant in Chengdu that killed three workers and injured 15 others was attributed to the accumulation of combustible dust.

As with its record of abusive labor practices, Foxconn has claimed that it has cleaned up its act on environmental matters. Maybe so, but any plant of the size that the company is promising will have an enormous impact on water and air quality in Wisconsin. Rather than weakening environmental safeguards, the state should be tightening them for this project.

Walker, who has a terrible track record on environmental issues, may be treating the Foxconn deal as an experiment in deregulation. Letting Walker — and by extension Trump, Pence and Ryan — use the Foxconn deal to bring back the bad old days of jobs-versus-the-environment would do no one any good.

The Emissions Scandal Widens

Thursday, June 1st, 2017

Big business would have us believe that it is on the side of the angels when it comes to the Paris climate agreement. A group of large companies just published full-page ads in the New York Times and Wall Street Journal urging (unsuccessfully, it turned out) President Trump to remain in the accord.

Not included in the list of blue chip signatories were the big auto producers, which may reflect the realization among those companies that it is becoming increasingly difficult for them to present themselves as defenders of the environment.

On the contrary, recent developments could cause them to be regarded as among the worst environmental criminals. That’s because evidence is growing that the kind of emissions cheating associated with Volkswagen is more pervasive in the industry.

Recently, the Justice Department, acting on behalf of the Environmental Protection Agency, filed a civil complaint against Fiat Chrysler alleging that the company produced more than 100,000 diesel vehicles with systems designed to evade federal emission standards. As a result, those vehicles end up producing pollutants (especially oxides of nitrogen or NOx) well above the acceptable levels set by EPA. In its announcement of the case, DOJ noted: “NOx pollution contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death.” This is a polite way of accusing the company of homicide.

Around the same time, a class action lawsuit was filed against General Motors accusing the company of programming some of its heavy-duty pickup trucks to cheat on diesel emissions tests.

The two companies are responding differently. GM is denying the allegations, calling them “baseless” and vowing to defend itself “vigorously.” Fiat Chrysler tried to ward off the federal lawsuit by promising to modify the vehicles. It expressed disappointment at the DOJ filing but is still vowing to work with regulators to resolve the issue. Fiat Chrysler is also maintaining that its systems are different from those used by Volkswagen, which has had to pay out billions in settlements and criminal fines; several of its executives are facing individual criminal charges.

Whether the response involves stonewalling, remediation or splitting hairs, the emergence of these new cases turns the emissions scandal from one involving a single rogue corporation to a pattern of misconduct that may turn out to be standard practice throughout the auto sector.

This in turn raises broader issues about deregulation. The Trump Administration and its Republican allies in Congress try to depict corporations as helpless victims of regulatory overreach in need of relief. What the widening emissions scandal shows is that large companies are often instead flagrantly violating the rules and in doing so are putting public health at risk. Rather than relaxing regulation, policymakers should be intensifying oversight to make it harder for cheating to occur.

The car industry would be a good place to start. Misconduct among automakers dates back decades. It was GM’s resistance to safety improvements that inspired Ralph Nader to launch the modern public interest movement in the 1960’s, and it was Ford’s negligence in the deadly Pinto scandal of the 1970s that gave new meaning to corporate greed and irresponsibility. It’s time for these companies to clean up their act once and for all.

Targeting Those at the Top

Thursday, May 18th, 2017

It remains to be seen how high the new special counsel Robert Mueller aims his probe of the Trump campaign, but there are reports that another prominent investigation is targeting those at the top. German prosecutors are said to be examining the role of Volkswagen chief executive Matthias Muller and his predecessor Martin Winterkorn in the emissions cheating scheme perpetrated by the automaker. They are also looking at the chairman of Porsche SE, which has a controlling interest in VW.

Mueller and Muller, by the way, have more of a connection than the similarity of their names. Last year, the former FBI director was chosen by a federal judge to serve as the “settlement master” to help resolve hundreds of lawsuits brought against VW in U.S. courts. Mueller has played a similar role regarding suits brought against Japanese airbag maker Takata.

Although Winterkorn was forced to resign after the emissions scandal erupted in 2015, he and Muller — who was VW’s head of product planning while the cheating was taking place — denied any wrongdoing, and the company sought to pin the blame on lower-level managers.

The initial U.S. Justice Department case against VW named no executives at all, though a company engineer later pleaded guilty to fraud charges and in January DOJ indicted six other VW middle managers.

There is no question that many individuals had to be involved in a scheme as widespread as the one at VW. Although it was corrupt, VW was also bureaucratic, so it is to be expected that lower-level managers either sought permission from their superiors for undertaking a risky scheme — or they were carrying out a plot that originated from above.

In fact, the New York Times reports that it has been shown internal company emails and memos suggesting that VW engineers implementing the scheme were operating with the knowledge and consent of top managers.

As the evidence mounts, the issue for German prosecutors may no longer be whether the likes of Muller and Winterkorn were involved but whether they, the prosecutors, are willing to bring charges against those at the apex of the corporate hierarchy.

In the United States, a reluctance to take that step has tainted the prosecution of business crime for more than a decade. At a time when discussion of whether anyone is above the law is the focus of discussion in the government realm, we should not forget that the principle applies in the corporate sector as well.

Another Form of Denial

Thursday, May 4th, 2017

Lurking behind the assault on regulation being carried out by the Trump Administration and its Congressional allies is the assumption that corporations, freed from bureaucratic meddling, will tend to do the right thing. That assumption is belied by a mountain of evidence that companies, if allowed to pursue profit without restraint, will act in ways that harm workers, consumers and communities. In fact, they will do so even when those restraints are theoretically in effect.

The latest indication of the true proclivities of big business comes in a report just released by the U.S. Chemical Safety Board on a 2015 explosion at the Exxon Mobil refinery in Torrance, California. That accident spewed toxic debris and kept the facility at limited capacity for a year, boosting gasoline prices in the region and costing drivers in the state an estimated $2.4 billion.

According to the safety board, the accident was not an act of god but rather the result of substandard practices on the part of Exxon. The report states:

The CSB found that this incident occurred due to weaknesses in the ExxonMobil Torrance refinery’s process safety management system.  These weaknesses led to operation of the FCC [fluid catalytic cracking] unit without pre-established safe operating limits and criteria for unit shutdown, reliance on safeguards that could not be verified, the degradation of a safety-critical safeguard,  and the re-use of a previous procedure deviation without a sufficient hazard analysis that confirmed that the assumed process conditions were still valid.

Exxon was also found to have used critical equipment beyond its expected safe operating life. The CSB investigation also discovered that a large piece of debris from the explosion narrowly missed hitting a tank containing tens of thousands of pounds of highly toxic modified hydrofluoric acid. Exxon refused to respond to the agency’s request for information detailing the safeguards it had (or did not have) in place to prevent or mitigate a release of the acid. The agency has gone to court to try to get the information.

The CSB is an investigatory and not a regulatory body, so it does not have the power to penalize Exxon for its role in bringing about what the agency called a “preventable” incident. Yet its report adds another entry to Exxon’s dismal corporate rap sheet. The Torrance refinery itself, which came from the Mobil side of the family, has a long history of fires, explosions and leaks. The rest of Exxon has a track record that includes the disastrous Exxon Valdez oil spill in Alaska, numerous pipeline accidents and much more, including many years of climate denial. This tainted record did not prevent the company’s CEO from being the U.S. Secretary of State.

Last year, the Torrance refinery was sold by Exxon to PBF Energy, which has subsequently experienced “multiple incidents,” as the CSB diplomatically put it.

No matter how many instances of corporate negligence are brought to light, there are always business apologists ready to point the finger at regulators instead. The gospel of deregulation is now the state religion of the Trump Administration. How many preventable disasters will it take to share that belief?

Trump’s Misguided Crusade Against the EPA

Thursday, March 2nd, 2017

Executives at Volkswagen must be cursing the bad timing. If only they had been able to keep their emissions cheating scheme quiet for a while longer, they could have avoided a lot of grief. That’s because the U.S. Environmental Protection Agency’s enforcement capacity may soon be crippled.

This is a likely consequence of the Trump Administration’s plans, just reported by the Washington Post, to cut the staff of the agency by one-fifth and eliminate dozens of programs. It’s not yet known exactly what functions are being targeted, but cuts of this magnitude will certainly make it more difficult for the EPA to pursue the kind of investigations that led to the filing of civil and criminal charges against VW.

In January, shortly before Trump took office, the company agreed to plead guilty to three federal felony counts and pay a criminal penalty of $2.8 billion along with another $1.5 billion to settle civil claims. VW previously reached a settlement with the EPA and other agencies under which it committed to spend more than $14 billion to buy back cars containing “defeat devices” and undertake projects to mitigate the extra pollution generated by those vehicles.

VW is one of the thousands of polluters whose activities have been thwarted by the EPA. As shown in Violation Tracker, since the beginning of 2010 the agency (on its own or with the Justice Department) has collected more than $43 billion in fines and settlements in more than 15,000 cases. That does not include billions more from companies such as BP in cases in which the EPA joined with other agencies in joint referrals to the DOJ. Apart from VW and BP, here are the biggest EPA penalty cases over the past seven years:

In 2015 a $5 billion settlement with the EPA and the DOJ went into effect under which Anadarko Petroleum agreed to pay for the clean-up of toxic waste sites across the country linked to Tronox Inc., a spinoff of Anadarko’s subsidiary Kerr-McGee.

In 2013 Wisconsin Power and Light Company, a subsidiary of Alliant Energy, agreed to spend over $1 billion on new equipment to substantially reduce air pollution generated by three coal-fired power plants.

In 2013 Transocean agreed to pay a $1 billion civil penalty to the EPA in connection with its role in the Deepwater Horizon disaster in the Gulf of Mexico three years earlier.

In a 2015 settlement with the EPA, fertilizer giant Mosaic agreed to establish a $630 million trust fund to pay for the future closure of and treatment of hazardous wastewater at four facilities in Florida and Louisiana. The company also agreed to spend $170 million on environmental mitigation at its operations.

In 2011 Hovensa, now owned by ArcLight Capital, agreed to spend more than $700 million on new air pollution controls at its massive petroleum refinery in the U.S. Virgin Islands.

Not all the companies are from the industrial and energy sectors. Retail behemoth Wal-Mart Stores has had to pay more than $90 million in EPA fines and settlements to resolve cases involving improper disposal of hazardous waste and other violations.

Data collected for an extension of Violation Tracker coverage back an additional ten years to 2000 includes EPA cases with total fines and settlements of more than $20 billion. Among these are a 2007 agreement by utility giant American Electric Power to spend an estimated $4.6 billion to reduce toxic air emissions at its power plants and a $50 million criminal penalty BP paid for environmental violations at its refinery in Texas City, Texas (now owned by Marathon Petroleum) where 15 workers were killed in an explosion in 2005.

These various examples do not include the many Superfund cases brought by EPA against multiple parties in connection with long-term toxic dumping or cases brought against government entities; nor do they include all the work EPA does apart from enforcement.

Trump’s assault on the EPA is based on the once common but now widely debunked notion that there is an inherent conflict between jobs and environmental protection. Today there is greater recognition that workers also need to breathe clean air and drink clean water, and that there are many business and employment opportunities associated with environmental clean-up and sustainable practices.

Decimating the EPA will serve only to empower rogue corporations such as Volkswagen. There is nothing to be gained from making polluters great again.

Principles versus Interests

Thursday, December 8th, 2016

The website of every large corporation these days has a section labeled Corporate Social Responsibility containing high-minded language about its commitment to sustainability, community development, human rights and the like.

For the most part, these positions serve mainly as a form of corporate image-burnishing and have little real-world applicability. Now, however, a group of large U.S. and foreign banks are being challenged to live up to their CSR principles in connection with one of the most contentious projects of our day: the Dakota Access Pipeline.

Following a recent decision by the Army Corps of Engineers to block the final permit needed to route the pipeline (usually referred to as DAPL) under North Dakota’s Lake Oahe and dangerously closely to the Standing Rock Sioux Reservation, the project is stalled. Yet that could quickly change with the incoming Trump Administration.

Meanwhile, attention has turned to a syndicate of 17 lenders that have committed a $2.5 billion line of credit to the project.  Among the leaders of the pack are Citigroup and TD Securities, owned by Canada’s Toronto-Dominion Bank. Of the 17, all but two are endorsers of a CSR document known as the Equator Principles. (The list of endorsers is here; the two members of the syndicate not among them are China’s ICBC Bank and Suntrust Robinson Humphrey.)

The principles were drawn up in 2003 by a group of major banks facing increasing pressure from environmental and human rights groups over their involvement in controversial projects undertaken by mining, petroleum and timber corporations.

In adopting the principles, banks committed to providing loans only to those projects whose sponsors could demonstrate that they would be performed in a “socially responsible” manner and according to “sound environmental principles.” Sponsors were also supposed to conduct assessments that took into consideration issues such as the impact on indigenous communities.

The current version of the Equator Principles states that projects affecting  indigenous  peoples  should include “a  process  of Informed Consultation and Participation, and will need to comply  with the rights and protections for  indigenous peoples contained in relevant national law, including  those  laws implementing host country obligations under international law…Projects with adverse impacts on indigenous people will require their Free, Prior and Informed Consent.”

It is highly questionable that Equity Transfer Partners and the other companies involved in DAPL have met this test. On the contrary, the harsh response of the project sponsors and local law enforcement agencies to the peaceful protests at the site has demonstrated an utter disregard for the concerns of Native water protectors.

It is no surprise that opponents of the pipeline are calling the lenders to task. In November a group of more than 500 civil society organizations from 50 countries issued a joint letter to the 17 lenders citing the Equator Principles and calling on them to suspend their financial support of the project until the concerns of the Standing Rock Sioux Tribe are fully addressed.

So far there is no sign that the lenders are prepared to withdraw their support of the pipeline. This means there will be more clashes ahead — both between police and protestors, and between the profit interests of the lenders and their purported principles.

The Lax Prosecution of Corporate Crime

Thursday, June 23rd, 2016

vt_logo-full_1When an individual commits a serious offense, chances are that he or she is going to face a criminal charge. When a corporation breaks the law in a significant way, in most cases it faces a civil penalty.

This disparity between the treatment of human persons and corporate ones became increasingly apparent to me as I finished processing the data for the expansion of the Violation Tracker database my colleagues and I at the Corporate Research Project of Good Jobs First are releasing on June 28.

Violation Tracker 2.0 adds data on some 700 cases involving banks and other financial services companies brought by the Justice Department and ten federal regulatory agencies as well as 600 involving non-financial firms in areas such as price-fixing and foreign bribery. These 1,300 cases account for well over $100 billion in fines and settlements.

These plus the environmental, safety and health cases that made up the initial version of Violation Tracker bring the total number of entries in the database to 110,000 for the period since the beginning of 2010. Of that number, only 473 — less than one half of one percent — involve criminal charges.

It may come as a surprise that the largest portion of the criminal cases involve serious environmental matters referred to the Justice Department by the Environmental Protection Agency and a few from agencies such as the Coast Guard. The largest of these was a $400 million settlement with Transocean in connection with the Deepwater Horizon disaster in the Gulf of Mexico but most have penalties below $1 million.

The next most common category is price-fixing, with 99 cases that imposed penalties ranging up to the $500 million paid by the Taiwanese company AU Optronics. There are 82 tax cases, most of which involve charges against Swiss banks for helping U.S. taxpayers keep their offshore accounts hidden from the IRS. Foreign Corrupt Practices Act cases brought by the Justice Department account for 53 cases, with the biggest penalty, $772 million, paid by the French company Alstom.

Other categories include serious food safety violations, market manipulation and failure to adhere to rules against doing business with countries deemed to be enemies of the United States.

The significance of the 473 cases is diminished by the fact that in 35 percent of them the companies weren’t really prosecuted. Instead, they paid a penalty and signed either a non-prosecution agreement or a deferred prosecution agreement. These are gimmicks that allow companies to avoid the consequences of a criminal conviction.

Of the 308 cases in which there was an actual guilty plea or verdict, 161 were environmental matters, many of which were brought against small companies for things such as toxic dumping. Relatively few large corporations were targeted.

The category with the largest number of big business convictions is price-fixing, which in recent times has often meant Asian automotive parts companies. Seven big U.S. and foreign banks (or their subsidiaries) have had to enter guilty pleas. In just two cases did U.S.  bank parent companies — Citigroup and JPMorgan Chase  — enter those pleas. These were in a case involving manipulation of the foreign exchange market. After their pleas, they and the foreign banks also charged got waivers from SEC rules that bar firms with felony convictions from operating in the securities business.

So here’s what it comes down to: Apart from when they engage in price-fixing, large corporations rarely face criminal charges. When they do, they are often allowed to settle without a formal prosecution. And when they do plead guilty, these can get waivers from the consequences of their conviction.

Keep this in mind the next time a corporate lobbyist complains about excessive regulation.

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Note:  Violation Tracker 2.0 will be released on June 28.

Monsanto’s German Suitor Has Its Own Tainted Record

Thursday, May 26th, 2016

Monsanto, one of the most controversial corporations in the United States, now finds itself the target of a takeover campaign by German pharmaceutical and chemical giant Bayer. Would a change in ownership improve the behavior of the biotechnology company dubbed “Mutanto” by its critics?

Answering that question requires a look at Bayer’s own track record, which is far from unblemished. Most Americans associate Bayer with aspirin. The company created the analgesic in 1899, but during World War I the U.S. government seized Bayer’s American assets and allowed other firms to sell aspirin under the Bayer name until the German company bought back the rights in 1994.

In the 1920s Bayer was absorbed into the massive IG Farben cartel, which used slave labor and supported the Nazi regime. After the Second World War it re-emerged as one of the companies created through the break-up of IG Farben. During the 1950s it began to return to the U.S. market through efforts such as a joint venture with Monsanto (in its pre-agribusiness era) called Mobay Chemical.

As Bayer has stepped up its U.S. involvement over the past two decades it has gotten embroiled in one scandal after another. In 1997 one of its subsidiaries based in New Jersey pled guilty to criminal price-fixing and had to pay a $50 million fine. In 2000 Bayer had to pay $14 million to the federal government and the states to settle allegations that it inflated prices on drugs sold to the Medicaid program. In 2001 it was accused of price-gouging on the antibiotic Cipro, which was then in high demand because of the anthrax scare. It later had to pay $257 million to settle a federal lawsuit on Cipro overcharging.

In 2003 documents emerged suggesting that Bayer was aware of serious safety problems with its cholesterol drug Baycol long before the medication was withdrawn from the market. In 2004 Bayer had to pay a $66 million fine in another criminal price-fixing case. A 2008 explosion at a Bayer pesticide plant in West Virginia that killed two workers led to regulatory penalties including a $5.6 million settlement with the EPA. A report found that management deficiencies played a significant role in creating the conditions that caused the explosion.

That’s just the quick version of Bayer’s controversies. For more see the website of the Coalition against BAYER-dangers, a German watchdog group that has been monitoring the company for more than 30 years.

Perhaps most troubling is the fact that Bayer has already been active in the businesses in which Monsanto has gained its checkered reputation: agricultural chemicals and genetically modified seeds. Before the Monsanto bid, Bayer was in the news most often because of concerns that its pesticides were responsible for sharp drops in bee populations.

The chances that a Bayer takeover of Monsanto will get the U.S. company to clean up its act seem slim indeed. In fact, the combined company will probably be an even bigger threat.

Emission Cheating and Lead Poisoning

Thursday, April 21st, 2016

Michigan Attorney General Bill Schuette announces Flint charges

Two legal cases involving egregious harm to public health have moved forward in recent days, though in very different ways. In one case an aggressive prosecutor, defying expectations, filed criminal charges against three individuals and vowed that they “are only the beginning. There will be more to come — that I can guarantee you.” In the other case, a large company reached a deal in which it will pay to modify or buy back hundreds of thousands of defective products.

The case in which the culprits are deservedly having the book thrown at them is the Flint water crisis, while in the other the boom is not yet being lowered on Volkswagen. The first involves misconduct by public officials, the second is a case of brazen corporate crime.

Admittedly, the settlement framework announced in the VW case does not necessarily reflect the full scope of the legal issues facing the automaker in connection with its systematic cheating in auto emission testing. It is not yet known whether the Justice Department’s reported criminal investigation of the matter will result in the filing of charges, nor is it clear whether the civil penalties that may be imposed on VW will come close to the theoretical maximum of $18 billion.

Yet the decision to announce the tentative buyback deal by itself creates the impression that it is the centerpiece of the resolution of the VW case. It’s being estimated that the U.S. buyback would cost the company about $7 billion. If that turns out to be the main cost imposed on VW, the automaker would be getting a bargain.

Causing financial harm to car owners is far from the only sin for which VW has to be held accountable, and it is probably not the most serious one. Of far more consequence are the environmental and public health impacts of the enormous amount of additional pollution that the VW engines have been spewing into the air. What started out as an effort to circumvent regulations will end up causing an unknown number of cases of asthma, bronchitis, emphysema, and possibly lung cancer.

There’s also the issue of deterrence. If VW and its relevant officials do not face serious consequences for their actions, people at other corporations may think they can also flout vital regulations. It’s already clear that VW’s emission fraud was not an anomaly. Mitsubishi just admitted it has been doing the same thing in Japan for at least one of its vehicles.

We don’t yet know the full story of what happened at VW much less Mitsubishi, yet it is likely that flagrant emissions deception arose out of a corporate mindset that sees regulations as obstacles to be overcome rather than legitimate rules designed to protect the public. That mindset will not change until corporations and individuals within them pay as heavy a price for their transgressions as that facing the public officials who poisoned the children of Flint.

Will Big Oil Survive Long Enough to Pay for Its Climate Sins?

Thursday, February 25th, 2016

“Times are tough, you’d almost call them brutal right now. But we will adapt. We will make it.” So insisted the deputy chief executive of BP at a conference in Houston where industry leaders put on a brave face amid a worsening crisis for the petroleum sector.

Other speakers were even more explicit about the Darwinian environment. “We will be one of the last guys standing,” declared the CEO of Suncor Energy, which once prospered from the tar sands boom in Alberta and is now selling off assets.

Several dozen oil and gas producers have had to file for bankruptcy protection since the beginning of last year. More such moves are expected. The business consulting firm Deloitte has issued a report estimating that more than one-third of all petroleum exploration and production companies are in precarious financial condition, with dozens likely to make the trip to bankruptcy court.

Even the oil majors are in trouble. Chevron reported a fourth-quarter loss of $588 million, while BP lost over $2 billion in the quarter and more than $5 billion for 2015 as a whole. Exxon Mobil and Shell are still in the black but their profits are down sharply. The industry’s problems are already depressing stock prices and are starting to cause heavy losses at the banks that lent extravagantly to the energy sector during the boom time.

It’s difficult to summon much sympathy for the oil companies, given the damage they have wrought. As shown in the Violation Tracker database I and my colleagues created, the petroleum industry has racked up more than $31 billion in environmental, health and safety penalties since the beginning of 2010, far more than any other industry. Much of this is the result of the massive fines and settlements paid by BP in connection with the Deepwater Horizon disaster in the Gulf of Mexico.

Yet there is one reason to hope for the survival of the petroleum producers: we need them to survive in some form so they can be taken to court over the role they’ve played in denying the reality of the climate crisis.

As Bill McKibben notes in a recent article, we’re now at the beginning of an investigation of what may prove to be one of the biggest corporate scandals in American history — the climate coverup.

At the center of the scandal is Exxon Mobil, the biggest fossil fuel corporation on earth and the one that is probably most culpable for suppressing evidence of the impact of its products on climate change. As path-breaking research by Inside Climate News showed, Exxon — reported to be the subject of current investigations by state prosecutors in New York and California — knew about global warming as early as the 1970s and quietly used that knowledge for its own benefit while keeping it from policymakers and the public.

Forty years later, the nature of the climate crisis is public information, but Exxon Mobil and the other oil companies continue to do business as usual. In fact, their obsession with exploration and production even at a time of softening demand has helped bring about the current price nosedive.

Exxon Mobil today has assets of more than $340 billion. Soon it may have to stop using those resources to produce more harmful fossil fuels and instead pay out substantial sums in damages to communities struggling to deal with the climate mess the industry has caused.