Big Oil in Trouble With Ecuador
Big oil companies are quick to react when spills occur in well developed countries like the United States. Their business relies heavily on creating a positive public opinion to keep them competitive in the market. So when highly publicized accidents happen they are quick to agree to help with clean up and settle lawsuits that could damage the company’s image. What happens when the accidents occur in smaller less publicized countries? With the technological advancements that have begun to unite our world and allow smaller countries and remote areas to connect and report their news across the globe, oil companies may have to rethink the way they do business.
In Ecuador a judge found oil giant Chevron guilty of massive contamination in the countries Amazon rainforest. The verdict handed down by the judge will require Chevron to pay a penalty of more that 8 billion dollars. This is the second largest environmental damage settlement amount ever required by a judge. The reason this case is so historic is not just the amount of money required in the verdict but it is the first time that the Native people of a rainforest region have brought a suit against an American company and won. This outcome has motivated the people and been a major victory for them in what has been almost a 2 decade battle against big oil.
The people of Ecuador initially brought the suit against the oil company because that alleged that Texaco, a company Chevron now owns, had been using harmful business practices in the northern regions of the countries rainforests for decades. The company drilled in that region from 1964 to 1990. During that time they were using old technology and cutting corners in every way possible at the cost of major environmental contamination. They knowingly introduced 18.5 billion gallons of toxic chemicals into the water sources that the locals used for drinking, washing, and as a major food source. More than 900 unlined holes were used to store toxins. Improper containment allowed deadly chemicals to seep into the ground and pollute the ground water and soil.
If this had occurred the United States public outrage would have forced the company to take immediate action and comply with all court verdicts, instead the company is resisting and hopes that the areas remote location will provide them with the cover they need to avoid public scrutiny. The top executives at Chevron have made some chilling and enlightening statements that illustrate big oil’s lack of regard for smaller or less populated regions. A Chevron Lobbyist told Newsweek “We can’t let little countries screw around with big companies like this”. Statements like this one may be just what consumers need to wake them up and cause them t start putting pressure on large companies.
While the case is Ecuador is far from over, the local communities and activists all over the world are continuing the fight. Chevron has refused to pay for clean up even if ordered to do so by the courts. The appeals are still working their way through the court system. While this battle continues on the legal front, more and more action is being taken to bring this disaster into the court of public opinion.
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Author Bio: Find out more about Environmental Pollution Liability here and how Beacon Hill Associates can help you.
Category: Advice
Keywords: Environment, Business, Industry, Insurance, Oil