Chevron

Company Snapshot: 

Chevron is the world's fifth largest global energy company and engages in oil exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. The company is currently embroiled in major lawsuits for the contamination of Ecuador (Aguinda v. Chevron) and alleged crimes in Nigeria (Bowoto v. Chevron).

Many of Chevron's plants release toxic chemicals including dioxin causing harm to local populations and wildlife, and the company has racked up fines globally for numerous toxic releases.

Number of employees worldwide: 
62,000
Chief executive officer: 
David J. O'Reilly
2008 Global Fortune 500 rank: 
6
Tel: 
925-842-1000
Total revenue: 
220,904
Corporate accountability
Accountability overview: 

In 1998 Chevron CEO Kenneth Derr, said, "Iraq possesses huge reserves of oil and gas - reserves I'd love Chevron to have access to." Former Chevron Director, Condoleezza Rice, now serves as National Security Advisor for the United States.

Tax issues: 

Chevron is suing to reduce the property taxes it pays for its giant Richmond, CA refinery, arguing that it overpaid by $59 million between 2004 and 2006.

Environment and product safety: 

Over the span of around 30 years starting (accounts vary) between 1965 and 1972, Texaco extracted more than 1.5 billion barrels of oil from the Ecuadorian Amazon and dumped 18.5 billion gallons of toxic waste and 17 million gallons of oil--more than the Exxon Valdez oil spill-- into the rainforest, contaminating streams, soil and estuaries, according to a complaint filed by five indigenous groups and 80 communities in the Ecuadorian Superior Court lawsuit Aguinda v. ChevronTexaco. This landmark suit represents over 30,000 people, many of them indigenous, who are now suffering a public health crisis, including a wave of cancers, birth defects and stillbirths. In April 2008, a court-appointed expert set damages against Texaco at between $7 billion and $16 billion. Under Ecuador’s legal system; it is now up to the judge to decide whether Chevron are liable, a decision expected in late 2008.

Texaco’s alleged pollution was avoidable. Instead of opting to comply with the standard industry practice of re-injecting toxic by-products into well cavities hundreds of feet into the ground (a practice that had been in effect for more than a half-century in the US when Chevron began drilling in Ecuador), Texaco executives decided to save approximately $3 per barrel by dumping the wastewater, laced with carcinogens and heavy metals including lead, directly into the natural environment.

Nearly 700 open-air toxic waste pits, some the size of football fields, filled with oil contamination have been found, many of which are also littered with the carcasses of animals that have fallen into them. As the toxic contents of the waste pits has seeped into the groundwater systems on which local communities depend, childhood leukemia rates have risen to four times higher than in other parts of Ecuador. Other health problems to rise include mouth and uterine cancer, spontaneous miscarriages, and birth defects childhood leukemia rates are four times higher and young children routinely die of lukemia.

In Burma, Chevron (which bought out Unocal) owns a 28 percent stake of the pipeline called the "Yadana project" which is the largest source of income for the Burmese government, at $969 million a year in 2008. Total is also part owner of the project that was grandfathered in, before sanctions prevented similar project from being contracted to foreign companies.

Chevron's Richmond Refinery in Richmond (Contra Costa County) California is one of the largest in the U.S., covering 3,000 acres and producing 2 million lbs of waste per year. In 2001 the refinery released almost 25,000 pounds of cancer-causing chemicals into the surrounding low-income, mostly African-American community and from 1989 to 1995 there were more than 300 reported accidents at the refinery. (For more information see the West County Toxics Coalition. The company has paid a number of negotiated fines, without investing in substantial equipment upgrades or safety improvements. In 2004, it paid about $330,000 to settle two enforcement lawsuits brought by the Contra Costa district attorney for over 70 reported violations between 2000 and 2002. In 2001, it was fined $242,500 for failing to repair leaking pipe connectors in a timely manner.

Human rights: 

The company has been accused by many organizations of "environmental racism" because it's owns facilities that pollute regions with a high concentration of African American, Southeast Asian and Latino communities.

Political influence (national and international): 

Chevron PACs and employees doled out $ 268,008 to members of Congress between 2007 and 2008. The top recipient ($23,500) was Rep. Roy Blunt (R-MO). To learn more go to Oil Change's Follow the Oil Money page.

With its headquarters in San Francisco, along with two refineries and half its U.S. production, California politicians receive the largest support from Chevron. According to Antonia Juhasz, "While Chevron's overall campaign spending heavily favors Republicans, just about every member of California's congressional delegation has at some point received money from the company or its employees." But "Chevron's best friend in office was also its number one recipient of campaign giving: Republican congressman [p://www.sourcewatch.org/index.php?title=Richard_Pombo Richard Pombo]. [Between 1993 and 2007] Pombo represented San Ramon, the location of Chevron's world headquarters, for 14 years. ... [A]s chairman of the house Resources Committee, Pombo did more than just about any other politician to support the interests of Chevron and Big Oil, earning himself the number one spot on the League of Conservation Voters' "Dirty Dozen" members of Congress list for 2006. The St. Petersburg Times of Florida called him "the oil industry's errand boy in the U.S. House." (" 'Nuts' to Gulf Drilling," (editorial), St. Petersburg Times, June 21, 2006).

Oil for Food Program Corruption

Chevron was implicated in corruption related to the UN "Food for Oil" program in Iraq, eventually agreeing to over 25 Million USD in fines.

Social responsibility: 

Shareholders and the general public are becoming increasingly concerned about Chevron’s failure to humanely and decisively deal with its legacy issue in Ecuador. The cities of both Berkeley and San Francisco — on the doorstep of Chevorn’s world headquarters in San Ramon, Northern California -- have passed resolutions condemning the oil major’s human rights and environmental violations.

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History

Chevron was one of the so-called "Seven Sisters" that emerged after Rockefeller's Standard Oil Co. was broken up. The cartel dominated oil production and distribution from 1918 to 1970. Standard Oil of California eventually became Chevron.

A merger with Gulf Oil in 1984 made Chevron the number one refiner and gasoline retailer in the U.S., with 34 refineries and close to 30,000 service stations worldwide. (William Hall, "Way Clear for Chevron to Justify Gulf Deal," Financial Times, June 19, 1985).

Chevron merged with Texaco in 2000, and shortly after that purchased Unocal.

The company currently produces oil and gas in AL, CA, CO, LA, NM, TX and WY, and operates refineries in CA, HI, NJ, MI and UT.

Financial information
Stock ticker symbol: 
CVX
Fiscal year: 
2007