ExxonMobil oil refinery in Joliet, Illinois. (Photo : Flickr)
A reported investigation is already underway whether ExxonMobil lied to the public and to investors about whether the oil giant already knew about how fossil fuels are causing climate change. This reported investigation is carried out by the New York state Attorney General Eric T. Schneiderman which could also spell trouble for other energy companies.
This investigation was fueled by Inside Climate News when they published a series of articles claiming that the company deceived Americans as they tried to conceal the link between fossil fuels and its effects on global warming even if the company's own scientific research already did confirm a connection.
According to a September 16 article from Inside Climate News, ExxonMobil already knew as far back as 1977 about the disastrous effects of climate change. Exxon Corporation merged with Mobile in 1999 where the article revealed a meeting that supposedly occurred in 1977 with a senior scientist named James F. Black who gave a presentation about excess carbon dioxide, giving a warning that petroleum and other fuels can significantly warm the entire planet.
After that year, Black reportedly presented another set of data, warning how carbon dioxide concentrations in the atmosphere could double and raise global temperatures by four to five degrees Fahrenheit and will also change rainfall patterns, that may cause heavier downpour in some regions while other areas could become dry and arid. Black also reportedly gave out a warning that humanity only had five to 10 years to take action before climate change becomes critical.
ExxonMobil CEO Rex Tillerson denied these allegations about the company misleading Americans where he said during an interview with Fox Business that the charges were unfounded and without any substance which dealt with an event that occurred decades ago. He also added that the company was very open during that period of time with all the research that they are carrying out.
When these allegations went public, a number of scientists, environmental organizations and even politicians called for federal authorities to investigate ExxonMobil. An October 30 letter from four congressmen already requested the Securities and Exchange Commission chair Mary Jo White to perform some action to immediately determine whether the energy company lied in its securities filings.
However, New York will not wait for a response as Schneiderman is also helping defend the Obama administration regarding a legal issue for new restrictions on power plants that burn fossil fuels where the State Attorney office already sent a subpoena to ExxonMobil headquarters ordering the company to surrender relevant documents.
Due to the anti fraud statute called the Martin Act, Schneiderman can go after companies where some violations of the act are felonies, where he can make the case against company executives, in which there is a possibility that they can be sent to prison, theoretically. However in cases like these, fines can be made as penalties. For the first half of this year, ExxonMobil earned US $9.1 billion.
