Criticism of Chevron
has been one of the most widely-criticized companies in the world, generally stemming from its activities and their relation to climate change. Chevron's most widely-known scandal involves Texaco's activities in Ecuador's Lago Agrio oil field, which Chevron is deemed responsible for due to its acquisition of Texaco in 2001. Chevron has been most widely criticized for its handling of litigation against it filed by residents of the Lago Agrio region, which included the extensive persecution of Lago Agrio lawyer Steven Donziger, who spent 45 days in jail out of a 6 month sentence and 993 days under house arrest.
Climate change activists have also held an Anti Chevron Day since 2013, which is held on or around May 21 of every year to coincide with the general period of time that Chevron holds its annual meeting of shareholders.
Lago Agrio activities
Texaco and Gulf Oil began operating in the Oriente region of Ecuador in 1964 as a consortium. Texaco operated the Lago Agrio oil field from 1967 to 1992 and the Ecuador state oil company continued to operate the same oil fields after Texaco left. In 1993, Texaco was found responsible for dumping billions of gallons of toxic waste and they spent $40m cleaning up the area during the 1990s. In 1998, the Ecuadorean government signed an agreement with Texaco accepting the clean-up as complete and absolving Texaco of any further responsibility. That same year, an Ecuadorean scientific team took water and soil samples after Texaco left and found petroleum hydrocarbons at unsafe levels in almost half. The clean up was called "a sham" by critics.In 2003, a class action lawsuit against Chevron was filed in Ecuadorian court for $28 billion by indigenous residents, who accused Texaco of making residents ill and damaging forests and rivers by discharging of formation water into the Amazon rainforest without any environmental remediation. Chevron said that the company had completed cleanup of the pollution caused by Texaco, that current pollution was the result of activities of the Ecuadorian oil interests, and that the 1998 agreements with the Ecuadorian Government exempted the company from any liabilities.
In 2011, Ecuadorian residents were awarded $8.6 billion, based on claims of loss of crops and farm animals as well as increased local cancer rates. The plaintiffs said this would not be enough to make up for the damage caused by the oil company. The award was later revised to $19 billion on appeals, which was then appealed again to the Ecuadorean National Court of Justice. The action has been called the first time that indigenous people have successfully sued a multinational corporation in the country where the pollution took place.
Chevron described the lawsuit as an "extortion scheme" and refused to pay the fine.
In November 2013, the international arbitration tribunal issued a partial award in favor of Chevron and its subsidiary, Texaco Petroleum Company. The tribunal found Chevron not liable for environmental claims in Ecuador.
In March 2014, United States district court judge Lewis A. Kaplan ruled that the Ecuadorian plaintiff's lead attorney, Steven Donziger, had used "corrupt means," including "coercion, bribery, money laundering and other misconduct," to obtain the 2011 court verdict in Ecuador. The judge did not rule on the underlying issue of environmental damages. While the US ruling does not affect the decision of the court in Ecuador, it has blocked efforts to collect damages from Chevron in US courts. Donziger appealed. The appeals court ruled against Donziger because of his “egregious” misconduct, witness tampering, and judicial coercion and bribery, therefore reaffirming Donziger's disbarment. Some media later alleged that Chevron had paid a key witness in the case hundreds of thousands of dollars for his testimony, which he later admitted to have been false.
In April 2015, Amazon Watch released videos reportedly sent from a whistleblower inside Chevron. The videos purportedly show employees and consultants finding petroleum contamination at sites in the Ecuadorean Amazon that the company claimed was cleaned up years earlier. These videos were confirmed as legitimate by Chevron legal counsel. According to the company, the videos show routine testing to establish the perimeter of oil pits. The company further stated that it is not possible to determine from the videos whether the sites shown are the responsibility of Chevron or its former partner, Petroecuador. According to Amazon Watch, the videos contain a map confirming that the sites are Chevron's, and contain footage of interviews with villagers known to live in the area for which Chevron is responsible.
In September 2018, an international tribunal ruled in favor of Chevron Corp finding that Ecuador had violated its obligations under international treaties. The tribunal held that a $9.5 billion pollution judgment by Ecuador's Supreme Court against Chevron "was procured through fraud, bribery and corruption and was based on claims that had been already settled and released by the Republic of Ecuador years earlier." Ecuador's attorney general plans to appeal the tribunal's ruling saying, "It worries us that the tribunal is asking a country to lift a sentence of one of its courts that was issued as part of a dispute between private parties."
Chevron continues to take oil from the Amazon region at large. El Segundo, Pascagoula, and Richmond refineries all process Amazonian oil. In 2015 El Segundo was the single largest refiner in the U.S. of Amazon Crude, processing 54,463 barrels per day.
Oil spills in Angola
Chevron has been one of the largest offshore oil producers in Angola by volume. Angola has a state-owned energy sector that partners with foreign corporations, including Chevron. Angola heavily relies on this foreign investment for economic growth. These partnerships are part of bigger energy projects that have many incentives to use environmentally sound methods, and technology. Despite this, Angola has experienced severe environmental problems from these projects, especially involving Chevron. A major Chevron oil spill occurred in 2002, which polluted beaches and contaminated the marine environment. It also caused extensive harm to fishing in the region. The cause of the spill was found to have been poor maintenance of pipelines. Chevron promised to invest $180 million for new pipes, and the pipeline was shut down once the leaks were discovered. Chevron's operations in Africa were criticized as environmentally unsound by 130 Nigerian researchers, journalists, and activists. In 2002, Angola demanded $2 million in compensation for oil spills allegedly caused by Chevron, the first time it had fined a multinational corporation operating in its waters.United States refineries
U.S. Clean Air Act settlements
The United States Environmental Protection Agency, along with the United States Department of Justice, and the Mississippi Department of Environmental Quality came to a settlement with Chevron for safety improvements for all its refineries in the United States due to claims of provisions of the Clean Air Act being violated by releasing hazardous chemicals. The investigation by the EPA was initiated by a fire that occurred on August 6, 2012, that involved high-temperature hydrocarbons being released. During the investigation in 2013, two other hazardous chemical related incidents happened at separate refineries, including an explosion and a fire in Pascagoula, Mississippi, and a rupture in El Segundo, California. There were also claims made under the Comprehensive Environmental Response, Compensation and Liability Act, and the Emergency Planning Community Right-to-Know Act, which were all resolved in the same settlement action. This lawsuit was the first time the United States and a state has partnered to enforce these acts. These settlements required improvements in refinery inspections and replacement of pipes at the Richmond, CA refinery, integrity operating windows, and better emergency prevention and response training for employees.Richmond, California refinery
The Richmond refinery paid $540,000 in 1998 for illegally bypassing waste water treatments and failing to notify the public about toxic releases. Overall, Chevron is listed as potentially liable for 95 Superfund sites, with funds set aside by the EPA for clean-up.A 1989 explosion and fire at the refinery resulted in a $877,000 OSHA fine for "willfully failing to provide protective equipment for employees." Chevron employees had "repeatedly requested" protective equipment since the early 1980s but the company had refused despite more than 70 fires in the plant since 1984. Elizabeth Dole, the US Secretary of Labor, said: "OSHA's investigation makes clear that Chevron knew of the need for protective equipment and clothing."
On March 25, 1999, an explosion and fire at the refinery spread noxious fumes and sent hundreds of Richmond residents to hospitals.
On August 6, 2012, a large fire erupted at the refinery. Initial reports estimated that 11,000 people sought treatment at area hospitals, and later reports placed the number above 15,000 people. The company pleaded no contest to six charges in connection with the fire, and agreed to pay $2 million in fines and restitution. Around the same time the settlement was announced, the Richmond city council voted to file suit against Chevron. The reasons for the suit included "a continuation of years of neglect, lax oversight and corporate indifference to necessary safety inspection and repairs."
In February 2011, 600 gallons of oil spilled from the refinery into San Francisco Bay.