Valdez Spill, Undiminished, Turns Exxon a Profit

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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

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DEMOCRACY DOES NOT EXIST...

without free and fair elections, a vigorous free press, and engaged citizens to reclaim power from those who abuse it.

In this election year unlike any other—against a backdrop of a pandemic, an economic crisis, racial reckoning, and so much daily bluster—Mother Jones' journalism is driven by one simple question: Will America move closer to, or further from, justice and equity in the years to come?

If you're able to, please join us in this mission with a donation today. Our reporting right now is focused on voting rights and election security, corruption, disinformation, racial and gender equity, and the climate crisis. We can’t do it without the support of readers like you, and we need to give it everything we've got between now and November. Thank you.

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