Valdez Spill, Undiminished, Turns Exxon a Profit

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.


Exxon reports that it earned $39.5 billion in 2006, giving the company the most profitable year ever for a US corporation. This mammoth figure has overshadowed other Exxon related news released today. A National Oceanic and Atmospheric Administration study has found that lingering crude oil from the Exxon Valdez spill in 1989 has barely budged. NOAA research chemist Jeffrey Short explained, “We expected the natural decay rate was 25% a year. But very little of the oil actually disappeared. What’s left is going to be there a long time.” Researchers now estimate that the oil is weathering at a rate of only 3% to 4% a year.

Continuing its campaign of
disinformation about all things environmental, Exxon spokesman Mark Boudreaux refuted the findings’ importance in an e-mail to USA Today: “There have been nearly 350 conference presentations or publications in peer-reviewed journals. Based on that body of scientific evidence, it is clear that there have been no effects on the environment that remain ecologically significant.”

How has Exxon remained so profitable, especially when it was responsible for the nation’s largest oil spill? It doesn’t hurt that the company managed to turn clean-up costs and legal fines it accrued in the aftermath of the disaster into tax write-offs. Additionally, by stretching its payments on a punitive damages settlement over 10 years, Exxon was able to collect millions in interest on money it had yet to pay.

–Celia Perry

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

TIME IS RUNNING OUT!

We have an ambitious $350,000 online fundraising goal this month and it's truly crunch time: About 15 percent of our yearly online giving usually comes in during the final week of the year, and in "No Cute Headlines or Manipulative BS," we explain why we simply can't afford to come up short right now.

The bottom line: Corporations and powerful people with deep pockets will never sustain the type of journalism Mother Jones exists to do. And advertising or profit-driven ownership groups will never make time-intensive, in-depth reporting viable.

That's why donations big and small make up 74 percent of our budget this year. There is no backup to keep us going, no alternate revenue source, no secret benefactor. If readers don’t donate, we won’t be here. It's that simple.

And if you can help us out with a donation right now, all online gifts will be matched thanks to an incredibly generous matching gift pledge.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate