What Exxon Knew, and When

Source: RSN via New Yorker

Author: Bill Mckibben

Emphasis Mine

Wednesday morning, journalists at InsideClimate News, a Web site that has won the Pulitzer Prize for its reporting on oil spills, published the first installment of a multi-part exposé that will be appearing over the next month. The documents they have compiled and the interviews they have conducted with retired employees and officials show that, as early as 1977, Exxon (now ExxonMobil, one of the world’s largest oil companies) knew that its main product would heat up the planet disastrously. This did not prevent the company from then spending decades helping to organize the campaigns of disinformation and denial that have slowed—perhaps fatally—the planet’s response to global warming.

There’s a sense, of course, in which one already assumed that this was the case. Everyone who’s been paying attention has known about climate change for decades now. But it turns out Exxon didn’t just “know” about climate change: it conducted some of the original research. In the nineteen-seventies and eighties, the company employed top scientists who worked side by side with university researchers and the Department of Energy, even outfitting one of the company’s tankers with special sensors and sending it on a cruise to gather CO2 readings over the ocean. By 1977, an Exxon senior scientist named James Black was, according to his own notes, able to tell the company’s management committee that there was “general scientific agreement” that what was then called the greenhouse effect was most likely caused by man-made CO2; a year later, speaking to an even wider audience inside the company, he said that research indicated that if we doubled the amount of carbon dioxide in the planet’s atmosphere, we would increase temperatures two to three degrees Celsius. That’s just about where the scientific consensus lies to this day. “Present thinking,” Black wrote in summary, “holds that man has a time window of five to ten years before the need for hard decisions regarding changes in energy strategies might become critical.”

Those numbers were about right, too. It was precisely ten years later—after a decade in which Exxon scientists continued to do systematic climate research that showed, as one internal report put it, that stopping “global warming would require major reductions in fossil fuel combustion”—that NASA scientist James Hansen took climate change to the broader public, telling a congressional hearing, in June of 1988, that the planet was already warming. And how did Exxon respond? By saying that its own independent research supported Hansen’s findings? By changing the company’s focus to renewable technology?

That didn’t happen. Exxon responded, instead, by helping to set up or fund extreme climate-denial campaigns. (In a blog post responding to the I.C.N. report, the company said that the documents were “cherry-picked” to “distort our history of pioneering climate science research” and efforts to reduce emissions.) The company worked with veterans of the tobacco industry to try and infuse the climate debate with doubt. Lee Raymond, who became the Exxon C.E.O. in 1993—and was a senior executive throughout the decade that Exxon had studied climate science—gave a key speech to a group of Chinese leaders and oil industry executives in 1997, on the eve of treaty negotiations in Kyoto. He told them that the globe was cooling, and that government action to limit carbon emissions “defies common sense.” In recent years, it’s gotten so hot (InsideClimate’s exposé coincided with the release of data showing that this past summer was the United States’ hottest in recorded history) that there’s no use denying it any more; Raymond’s successor, Rex Tillerson, has grudgingly accepted climate change as real, but has referred to it as an “engineering problem.” In May, at a shareholders’ meeting, he mocked renewable energy, and said that “mankind has this enormous capacity to deal with adversity,” which would stand it in good stead in the case of “inclement weather” that “may or may not be induced by climate change.”

The influence of the oil industry is essentially undiminished, even now. The Obama Administration may have stood up to Big Coal, but the richer Big Oil got permission this summer to drill in the Arctic; Washington may soon grant the rights for offshore drilling along the Atlantic seaboard, and end a longstanding ban on oil exports. All these measures help drive the flow of carbon into the atmosphere—the flow of carbon that Exxon knew almost forty years ago would likely be disastrous.

We’ve gotten so inured to this kind of corporate power that the report in InsideClimate News received relatively little coverage. The big news of the day on social media came from Irving, Texas, where the police handcuffed a young Muslim boy for taking his homemade alarm clock to school; all day people tweeted #IStandWithAhmed, and rightly so. It’s wondrous to see the power of an Internet-enabled world shining the light on particular (and in this case telling) injustice; there’s a principal and a police chief in Irving that will likely think differently next time. But we badly need the same kind of focus on the long-lasting, underlying abuses of corporate might. As it happens, Exxon is based in Irving, Texas too.

 

See:http://readersupportednews.org/opinion2/277-75/32488-what-exxon-knew-and-when

5 Reasons Capitalism Has Failed

The root cause of our recent turmoil is the failure of the dominant economic paradigm — global corporate capitalism.

By Bob Burnett, The Smirking Chimp, via AlterNet

(N.B.: Marx was right, after all…)

We live in interesting times. The global economy is splintering. U.S. voters hate all politicians and there’s political unrest throughout the world. The root cause of this turmoil is the failure of the dominant economic paradigm — global corporate capitalism.

The modern world is ruled by multinational corporations and governed by a capitalistic ideology that believes: Corporations are a special breed of people, motivated solely by self-interest. Corporations seek to maximize return on capital by leveraging productivity and paying the least possible amount for taxes and labor. Corporate executives pledge allegiance to their directors and shareholders. The dominant corporate perspective is short term, the current financial quarter, and the dominant corporate ethic is greed, doing whatever it takes to maximize profit.

Five factors are responsible for the failure of global corporate capitalism. First, global corporations are too big. We’re living in the age of corporate dinosaurs. (The largest multinational is JP Morgan Chase with assets of $2 Trillion, 240,000 employees, and offices in 100 countries.) The original dinosaurs perished because their huge bodies possessed tiny brains. Modern dinosaurs are failing because their massive bureaucracies possess miniscule hearts.

Since the Reagan era global corporations have followed the path of least resistance to profit; they’ve swallowed up their competitors and created monopolies, which have produced humongous bureaucracies. In the short-term, scale helps corporations grow profitable, but in the long-term it makes them inflexible and difficult to manage. Gigantism creates a culture where workers are encouraged to take enormous risks in order to create greater profits; it’s based upon the notion that the corporation is “too big to fail.”

Second, global corporations disdain civil society. They’ve created a culture of organizational narcissism, where workers pledge allegiance to the enterprise. Corporate employees live in a bubble, where they log obscene hours and then vacation with their co-workers. Multinationals develop their own code of ethics and worldview separate from that of any national state. Corporate executives don’t care about the success or failure of any particular country, only the growth and profitability of their global corporation. (Many large corporations pay no U.S. income tax; in 2009 Exxon Mobil actually got a $156 M rebate.)

Third, global corporations are modern outlaws, living outside the law. There is noinvisible hand that regulates multinationals. In 1759 Philosopher Adam Smith argued that while wealthy individuals and corporations were motivated by self interest, an “invisible hand” was operating in the background ensuring that capitalist activities ultimately benefited society. In modern times this concept became the basis for the pronouncements of the Chicago School of Economics that markets were inherently self regulating. However, the last five years have demonstrated that there is no “invisible hand”unregulated markets have spelled disaster for the average person. The “recovery” of 2009-10 ensured that “too big to fail” institutions would survive and the rich would continue to be rich. Meanwhile millions of good jobs were either eliminated or replaced by low-wage jobs with poor or no benefits.

Fourth, global corporations are ruining our natural capital. Four of the top 10 multinational corporations are energy companies, with Exxon Mobil leading the list. But there are many indications that our oil reserves are gone. Meanwhile, other forms of natural capital have been depleted — arable land, water, minerals, forests, fish, and so forth. Multinational corporations have treated the environment as a free resource. When the timberlands of North America began to be depleted, lumber corporations moved to South America and then Asia. Now, the “easy pickings” are gone. Global corporations have ravished the world and citizens of every nation live with the consequences: dirty air, foul water, and pollution of every sort.

Fifth, global corporations have angered the world community. The world GDP is $63 Trillion but multinational corporations garner a disproportionate share — with banks accounting for an estimated $4 trillion (bank assets are $100 trillion). Global black markets make $2 trillion — illegal drugs account for at least $300 billion. In many parts of the world, a worker is not able to earn a living wage, have a bank account or drive a car, but can always obtain drugs, sex, and weapons. And while the world may not be one big village in terms of lifestyle, it shares an image of “the good life” that’s proffered in movies, TV, and the Internet. That’s what teenagers in Afghanistan have in common with teenagers in England; they’ve been fed the same image of success in the global community and they know it’s inaccessible. They are angry and, ultimately, their anger has the same target — multinational corporations (and the governments that support them).

We live in interesting times. The good news is we’re witnessing the failure of global corporate capitalism. The bad news is we don’t know what will replace it.”

(N.B.: Perhaps we do – see peoplesworld.org)

Bob Burnett is a writer and activist in Berkeley, Calif.

Emphasis Mine

see:http://www.alternet.org/story/152118/5_reasons_capitalism_has_failed?page=entire