This presentation reveals the bad deals, disasters and fiascoes that EXXON has been involved in while Rex Tillerson worked as an EXXON CEO, Manager and Engineer. It demonstrates a pattern of high-risk undertakings and assistance from the US State Dept. in foreign ventures which he has been nominated to head. In the US, it shows that obsolete and mismanaged refining facilities and pipelines have been responsible for multiple accidents resulting in fines, legal actions, injuries and deaths.
This presentation reveals the bad deals, disasters and fiascoes that EXXON has been involved in while Rex Tillerson worked as an EXXON CEO, Manager and Engineer. It demonstrates a pattern of high-risk undertakings and assistance from the US State Dept. in foreign ventures which he has been nominated to head. In the US, it shows that obsolete and mismanaged refining facilities and pipelines have been responsible for multiple accidents resulting in fines, legal actions, injuries and deaths.
This presentation reveals the bad deals, disasters and fiascoes that EXXON has been involved in while Rex Tillerson worked as an EXXON CEO, Manager and Engineer. It demonstrates a pattern of high-risk undertakings and assistance from the US State Dept. in foreign ventures which he has been nominated to head. In the US, it shows that obsolete and mismanaged refining facilities and pipelines have been responsible for multiple accidents resulting in fines, legal actions, injuries and deaths.
Four people critically injured in November at fourthlargestoil refineryin theUS producing a half million barrels per day. A compressor blew out during restart of an alkylation unit following maintenance. Standard Oilfirst erected the refinery in 1909, over 100 years ago.
EXXON Leads US In Refinery Incidents
US REFINERY INCIDENTS BY COMPANY 19
20 18 16 14 12
10
10
9 10
6 4 2 0
2111
1111111
111
23
4 11
21
12 Total
222111
EXXON pulls Geoscience Conference Funding
The American Geophysical Unio n will not receive any funding from EXXON in 2016 after more than 60,000 scientists, activists and others urged AGU to refuse Exxon's money. Scientists claimed the company has contributed to the spread of misinformation aboutclimate change.
EXXON CLIMATE CHANGE POLICIES
INVESTIGATED BY ATTORNEY GENERALS On March 19,2016, the Attorney Generals of Massachusetts and the US Virgin Islands announced they were investigating EXXON because their public statements and support of Climate Change Denial organizations was not consistent with their own research findings. They were joined by 17 other Attorney Generals including California and New York. EXXON responded by suing the Attorney Generals to reveal all of their documents. The Attorney Generals and 9 major environmental organizations have refused to comply.
Tengiz Field in Kazakhstan will Invest $40 Bill
In 2016, operator Tengizchevroil says they will invest $27.1 billion in facilities, $3.5 billion in wells and $6.2 billion for contingency and escalation to boost production about 250,000 barrels per day. In 1993, Chevron was awarded the rights to develop Tengiz. EXXON/Mobil acquired 25% interest in the Consortium in 1995. According to the company, the Tengiz oil field's reservoir is located 12,000 feet below ground level, which makes it the world's deepest operating super-giant oil field.
2016 KASHAGAN Field in Kazakhstan Relaunch
In Oct 2016, After $50 Billion in investment,($15 Billion overbudget and 16 years behind schedule), new Operator EXXON complained of overpromise and underdelivery, with only 17% interest, finally began exporting oil from widelycalled CASH ALL GONE after replacing the entire pipeline system. With crude prices around $50 per barrel and OPEC cutting production targets, Kashagan is still trying to increase production.
2016 EXXON sells 88 yr.-old Torrance, CA
Refinery to PBF for $538 million Chemical Safety Board (CSB) cited numerous EXXON management problems which contributed to the Feb 2015 explosion
EXXON Torrance, CA Refinery Flares
EXXON had to demonstrate that they could operate the refinery for 15 days without an incident. Before the sale was finalized. It took 3 months to achieve this goal. Since unplanned flaring was common. Flaring has continued after the sale to this day.
FEB 2015 EXXON TORRANCE REFINERY EXPLOSION
CSB INVESTIGATION
2015 EXXON Torrance Refinery Explosion
CAL/OSHA cited 18 serious violations, 6 were classified as willful. ExxonMobil did not take action to eliminate known hazardous conditions at the refinery and intentionally failed to comply with state safety standards.
2015 Santa Barbara Refugio Pipeline Break
On May 19, 2015 a Plains All American oil pipeline spilled nearly 150,000 gallons along 100 miles of the Santa Barbara coastline. Prior to the spill, Exxon, which was the regions biggest oil operator at the time, was on pace to generate approximately $636 million in revenue in Santa Barbara County during 2015 but as of November 5, 2015 had only generated an estimated $216.6 million.
ExxonMobil's Las Flores Canyon Facility
EXXON plant and pumps adjacent to pipeline failure. Plains All American operators were located in EXXONs control room at the pump station at the time of pipe failure.
EXXON Santa Barbara Production still shut-in
The offshore oil platforms that rely on the lines were forced to shut down when onshore storage tanks were filled. As of December 2015, no official timetable had been established to restart the rigs
EXXON CONTAMINATION SETTLEMENT NJ
In 2015 Exxon reached a settlement with New Jersey officials in a longrunning legal battle over contamination caused by the company's facilities in the northern part of the state. The settlement amount, $225 million , was far less than the billions of dollars in damages the state had been seeking, prompting allegations that the administration of Gov. Chris Christie had let Exxon off too easily.
2015 Exxon Rating Downgraded
Standard and Poors downgrades credit rating from AAA to AA+. It had remained stable since 1949
EXXON Financial Trouble
EXXON Arun Field, Indonesian Torture Case
Can Proceed In 2014, a US federal court decided that the case against EXXON in Arun Fld, Indonesia could proceed; in 2015 that the claims sufficiently "touch and concern" the United States that they may proceed in US court.
2014 Venezuelan Settlement
On October 9, 2014, the World Courts International Centre for Settleme nt of Investment Disputes awarded ExxonMobil $1.6 billion in the case the company had brought against the Venezuelan government.[ This was only a tenth of what EXXON sought for Nationalization of Cerro Negro project.
2014 Giant Oil Discovery in the Kara Sea
In spite of sanctions against Technology Transfer to Russia, a special US extension granted to EXXON, resulted in the VICTORY discovery. This well found an estimated 730 million barrels of oil recoverable at an initial cost of $600 million but work is suspended. Rosneft announced that additional drilling in the Kara Sea will be delayed until at least 2018 due to sanctions against Russia and its impacts on EXXON. Severe weather conditions make drilling possible for only about two months a year, but at current oil prices it is not economic without specialized Western equipment and funding given Rosnefts nearly $50 Billion debt.
Rosneft Drilling Rig in Siberia
KASHAGAN Field, Kazakhstan Pollution Fine
In March 2014, Kazakhstan's environment ministry levied a fine upon the operating companies of $735 Million. When the pipeline was shutdown, Hydrogen Sulfide remaining in the pipe was burned off as an emergency measure, releasingSulfur Dioxide into the atmosphere. Aerial view of the KASHAGAN field structures
2013 Mayflower, AR Tar Sands Spill
On March 29,2013 EXXON Pegasus Pipeline
carrying tar sands oil bursts spilling 135,000 gallons into the Mayflower neighborhood.
22 homes evacuated 4 homes demolished EXXON paid $5 million in penalties
EXXON Pipeline Break on 65 yr. old Pegasus Line
in Mayflower, AR The flow of the southern section was reversed in 1995, and again in 2002 The northern section was abandoned in 2002, before being recommissioned in 2005-2006 and reversed to carry diluted bitumen from Alberta Tar Sands to refiners in Texas.[7] Used a manufacturing process called LF-ERW (Low-Frequency Electric Resistance Welds). This process has been known to have latent defects which eventually leads to failures.
2013 Angry Protests in Iraq W. Qurna Field
In Feb 2013 over1,000 people have protestedat ExxonMobil and Russia Lukoil's super-giant West Qurna oil field,demanding jobs and paymentfor private land that has been lost or damaged by oil operations. The army was called in to restore order after the protesters stormed offices and smashed surveillance cameras at the oilfield. "At least 400 angry protesters breached the main gate and broke into West Qurna oilfield,". "Most of the foreign and local staff left the field as a safety measure and work was significantly affected."
2013 EXXON sells of its Interest in S. Iraq Field
Nov. 2013 Exxon reduces its interest in West Qurna Field from 60% to 25%. It sells 25% to PetroChina and sells 10% to Pertamina, the Indonesia National Oil Company. Production peaks at slightly below 500,000 per day on the 20 year contract.
KASHAGAN Field in Kazakhstan Pipeline Failure
in September 2013, Production of more than 150,000 barrels oil per day from the Kashagan field abruptly ceased, due to toxic gas leaks from the sour gas subsea pipeline. Following investigations, it has been decided that both the oil and the gas pipeline will be replaced 2013 partners replaced undersea links after high pressure sour gas (High Sulfur) cracked the pipes due to severe corrosion and extensive damage in freezing weather conditions. Kashagan is now expected to cost a total of $136 billion, more than 140% above initial estimates
2012 Baton Rouge Refinery pipeline oil spill
In April 2012, a crude oil pipeline, from the Exxon Corp Baton Rouge Refinery, burst and spilled at least 1,900 barrels of oil (80,000 gallons) in the rivers of Point Coupee Exxon Corp Baton Refinery for a few days. According to former EXXON CEO Lee Raymond, Im not a U.S. company and I dont make decisions based on whats good for the U.S.
Baton Rouge Refinery benzene leak
On June 14, 2012, a tank in the Baton Rouge Refineryfailed and began leakingnaphtha, a substance that is composed of many chemicals including benzene. ExxonMobil originally reported to the Louisiana Department of Environmental Quality (LDEQ) that 1,364 pounds of material had been leaked On June 20, ExxonMobil sent an official notification to the LDEQ saying that the leak had actually released 28,688 pounds of benzene, 10,882 pounds of toluene, 1,100 pounds of cyclohexane, 1,564 pounds of hexane and 12,605 pounds of additional VOCs
2012 Nigeria EXXON Pipeline Oil Spill
Nov 2012, EXXON Offshore Pipeline spills oil along 20 miles of shoreline. One of two major EXXON oil spills in Nigeria in just two months. The UN reported that 50 years of oil spills neglected by oil companies and the government in Nigeria had devastated Oganiland in the Niger Delta.
A native scoops oil into cans
from the EXXON spill.
2011 EXXON Deal for fields in Kurdistan, Iraq
Oct. 2011 Tillerson signs contract for 6 fields in Disputed territory in Iraq. Baghdad Government threatens EXXON with military action but already owes the company $1 Bill. US State Dept advises EXXON to wait for passage of National Legislation but Tillerson refuses. Within days US talks to extend deadline for troop withdrawal failed.
2011 Yellowstone River, MT Oil Spill
Exxon Silvertip Pipeline
spilled 63,000 gallons of oil into the Yellowstone River Two and a half hours outside of Yellowstone National Park
2011 Yellowstone River, MT Oil Spill
Ruptured about 10 miles west of Billings on July 1, 2011 The resulting spill leaked an estimated 60,000 gallons into the Yellowstone River for 56 minutes before it was shut down
EXXON Deal with Russias Rosneft in Kara Sea
August 2011 EXXON signs deal with Rosneft. The two companies agreed to invest US$3.2billion in a joint venture to develop the three East-Prinovozemelsky blocks. Exxon traded 30% interest in Kara Sea projects for shares in West Texas Projects and 30% of Exxon's Gulf of Mexico leases and projects in Alberta. Canada. Investments could possibly reach as high as $500billion, but in the near term, it is likely that investments will reach only tens of billions of dollars. US Sanctions against Russia in 2014 prohibited EXXON participation
2010 EXXON/MOBIL Nigeria Oil Spills
In May, the company declared force majeure when an offshore pipeline breaks spilling a million gallons of oil into the Niger Delta in 7 days. Another spill occurred on June 19 th, and tar balls reached the beach the following day. By November they reported 4 spills in the previous 6 months. EXXON/MOBIL was cited for the use of dispersants near the coast which were considered against environmental standards. The government estimated that the country was experiencing about 300 spills per year between 1970 and 2000.
EXXON Nigeria Protests Shutdown Production
Protesters following the spill, claimed that had been beaten by security guards near the EXXON/MOBIL facilities. Locals are demanding $1 billion in compensation. In May 2010, the company declared force majeure
2010 EXXON SIGNS NEW AGREEMENT FOR GIANT
NATUNA EAST CO2 GAS FIELD IN INDONESIA The estimated resource in place of the East Natuna field is around 222trillion cubic feet of which totalproven reserves of natural gas are 46trillion cubic feet with 175 trillion cubic feet of CO2. Production is forecast to be around 2billion cubic feet per day.
2010 BP Oil Spill Uses nearly 2 mill gallons of
EXXON COREXIT Dispersant Corexit is a line ofoil dispersantsused during oil spillresponse operations. It is produced by Nalco Company, associated withBPandExxon and an indirect subsidiary ofEcolab. Corexit was originally developed by the Standard Oil Companyof New Jersey. in 2013 a report by the Government Accountability Projectalleged "devastating long-term effects on human health and the Gulf of Mexico ecosystem" stemming from the use of Corexit
The total used in the BP
Gulf event was 1.84 million gallons of Corexit EC9500A and Corexit EC9527A, with roughly 58% sprayed from the air.
2009 EXXON Iraq Deal for Giant W. Qurna Field
Nov 2009 Tillerson signs contract for West Qurna Phase 1 Field in Southeast Iraq. He signs Service Contract committing $50 Billion investments for 9 billion barrels at less than $2 per barrel net. This is an obvious foot-in-the-door approach which involves $25 Billion in drilling and equipment with another $25 Billion in in operating costs to raise production from 270,000 barrels per day to 2.25 Million barrels per day in 7 years. At the start of 2016 Production from the field was only 400,000 barrels oil per day.
2009 EXXON MTBE CLEAN WATER ACT VIOLATIONS
In 2009 a federal jury found Exxon Mobil liable for contaminating ground water in New York with the gasoline additive MTBE and awarded the city $104 million in compensatory damages. Exxon knew of the potential for groundwater contamination when it added M.T.B.E. to gasoline and failed to warn government agencies, gas station owners and the public about the danger.
EXXON Ruled Against in Yemen by Arbitrators
November 2008 ICC rules that Yemen was within the law and contract provisions when it refused to extend EXXON contract. Yemen government allowed to keep 100% of production and oil revenues from YEPC Block 18 without penalties. The decision was worth Billions of dollars to Yemen which was dependent on oil for more than 90% of their total revenue.
2008 EXXON REFINERIES CLEAN AIR ACT
SETTLEMENT In 2008 Exxon Mobil agreed to pay about $6 million to resolve charges that it violated the terms of a 2005 Clean Air Act settlement concerning emissions from its refineries in Texas, Louisiana and California.
EXXON TSCA VIOLATIONS IN SANTA BARBARA, CA
Also in 2008, Exxon Mobil agreed to pay $2.64 million to settle EPA charges that it violated the Toxic Substances Control Act Improperly handling and disposing of PCBs on an offshore oil and gas platform in the Santa Barbara Channel off the Southern California coast.
2007 Greenpoint, Brooklyn Oil Spill
A study of the spill released by the US Environmental Protection Agency in September 2007 reported[140]that the spill consists of 17 to 30million US gallons of petroleum products from the mid-19th century to the mid-20th century.[141]The largest portion of these operations were by ExxonMobil or its predecessors. Subsequent investigations found product from the spill encompassing more than 52-acres under Greenpoint.
ExxonMobil in Venezuela Nationalized
EXXON Alleged that the government illegally expropriated its assets in 2007 and paid unfair compensation.
2007 KAZAKHSTAN Fines Tengiz for Sulfur
The government of Kazakhstan levied a $600 million
fine on the Tengiz/Chevroil Consortium for failure to process and contain mountains of Sulfur on the ground and threatening the health of workers and local populations. Approx.10 million tons of open air sulfur accumulated next to the marshes as a product of the 15% H2S at the oil and gas processing plant. Previously, the Consortium had been fined $70 million and forced to relocate the entire population (3500 people) of the village ofSarykamysto new homes in the vicinity of Atyrau at an estimated cost of $73 million to protect their health.
Image of Tengiz Field processing
facilities with the sulfur blocks
2006 EXXON FUEL LEAK IN MYSTIC, MA
The company pleaded guilty to one criminal charge of violating the Clean Water Act in connection with a 2006 leak of fuel oil into the Mystic River in Massachusetts.
2005 Indonesian Aceh Insurgency Ended
TheFree Aceh Movement(Indonesian:Gerakan Aceh Merdekaor GAM fought against Indonesian government forces in theAceh insurgencyfrom 1976 to 2005, during which over 15,000 lives are believed to have been lost. GAM signed a peace treaty with Indonesia in the aftermath of the devastation caused by amassive tsunami, in Dec, 2004 which killed an estimated 150,000 people in Indonesia . On the question of the uneven distribution of income, it was settled that seventy percent of the income from local natural resources will stay within Aceh.
Mass grave was uncovered in central Aceh,
the province where a bloody civil war raged for years
2005 EXXON Forced to Relinquish Marib Field in
Yemen Yemeni Parliament vetoed 5 yr. contract extension on Block 18 after 20 year production contract with EXXON and Hunt Oil, the Yemen Exploration and Production Company (YEPC) expired. YEPC sued Yemen for $1.6 billion and the case went to arbitration at the International Chamber of Commerce (ICC) in France. Yemen counter-sued EXXON and partners for $8 billion for environmental damages and reservoir mismanagement during part of time that Tillerson was Pres. of EXXON YEMEN Inc.
2003 RUSSIAN YUKOS OIL SEIZED
Head of Yukos in Russia Khodorkovsky is arrested.
2001 EXXON Shuts Down Arun Fld, Indonesia
The International Labor Rights Fund took on the cause of people claiming to be victims of abuse on behalf of 11 villagers from Aceh claiming to be victims of human rights abuses by security forces hired by ExxonMobil. In addition, the suit alleges that the security forces are either employees or agents of Exxon Mobil, and thus Exxon Mobil is liable for their actions. Fearing for the lives of its employees after a series of attacks, ExxonMobil shut down its Arun natural gas operations in Aceh in March 2001
2000 KASHAGAN Field Discovered in Kazakhstan
Worlds biggest oil find in 35 years found by Shell in the N. Caspian Sea est at about 35 Billion Barrels in place & 8 Bill barrels of oil recoverable. Phase 1 production was limited by physical capacity at onshore and offshore facilities and is targeted at more than 350,000 barrels of oil per day. Production was initially delayed by the need to build 10 remote islands to support drilling equipment. The Italian Operator ENI had originally planned to build worker housing too near operations that could expose workers to toxic gas leaks. Phase two, development has the potential to increase output to 1 million barrels a day and could make it the most expensive energy project in the world.
An artificial island on the Kashagan
offshore oil field
1999 EXXON Merges with Mobil
In 1968, Mobil began operating the Arun gas fields, which are owned by the Indonesian state oil company, Pertamina. In 1971, Mobil Oil Indonesia discovered massive reserves of natural gas in north Aceh, which led to the creation of the Lhokesemawe Industrial Zone (ZILS.) After Exxon bought Mobil in 1999, the merged company, which is based in Irving, Texas, took over the management of Arun. This was Mobils largest production asset worth about $1 billion in revenue annually.
1998 EXXON Production Peaks in Thailand
Production at Nam Phong Gas Field for ESSO Khorat Inc (when Tillerson is President) laterpeaks at 150 MMcfd and soon declines to 50 MMcfd. After spending $300 million in Thailand, recoverable reserves were subsequently cut from 1.5 TCF to 400 BCF (nearly 75% decrease). Esso Khorat officials said the field might not justify additional investment.
Aceh Resistance in Indonesia Against Mobil
From 1989 to 1998, the Indonesian government designated Aceh as a Military Operation Area, with thousands of troops assigned to defeat the armed independence force around the oil fields.
A sign warns civilians to keep out of the first
of four natural gas fields that together make up ExxonMobil's facility in Lhoksukon, Aceh
1998 SAKHALIN ISLAND, RUSSIA
Tillerson is appointed as head of EXXON Neftegas in charge of Sakhalin Island Oil and Gas project off Siberia. He continues to hold the Neftegas responsibilities until 2016
EXXON/MOBIL Buys into KAZAKHSTAN
In May 1995, Exxon/Mobil bought a 25% interest into the Tengiz Field operated by ChevronTexaco for $1 Billion. In 2003, A New York Grand Jury indicted an American fixer, James Giffen, and Mobil Rep. J. Bryan Williams for bribery of foreign officials in the acquisition of that contract. Tengiz Field is the sixth largest field in the world with production of over 500,000 barrels of oil per day and recoverable reserves of 6 billion barrels and a 40 year field life
1995 EXXON SIGNS INDONESIAN CONTRACT FOR
GIANT NATUNA CO2 FIELD The Gas Field will be the largest in Asia with reserves of about 200 TCF The development of Natuna Field is expected to cost US$2040billion. CO2 content of the Natuna Field resource is about 71% CO2 might be released across
1990 EXXON BAYWAY REFINERY, NJ PIPELINE LEAK
On January 1, 1990 a cracked underwater pipeline at the company's Bayway Refinery in New Jersey leaked some 600,000 gallons of heating oil into part of New York harbor. Three accidents involving spills have pummeled New York area barging operations and will result in shutdown of a refinery. Exxon Corp. indefinitely suspended tanker and barge operations involving its 130,000 b/d Bayway refinery at Linden, N.J., and Bayonne, N.J., terminal Mar. 2. Three product spills into water have occurred near the facilities in 3 months
1989 EXXON Valdez, Alaskan Oil Spill
March 24, 1989,Exxon Valdez oil spill resulted in the discharge of approximately 11million US gallons of oil into Prince William Sound, oiling 1,300 miles of the remote Alaskan coastline EXXON developed COREXIT with 2butoxyethanol was identified as a causal agent in the health problems experienced by cleanup workers According to the Alaska Community Action on Toxics, the use of Corexit during the spill caused people "respiratory, nervous system, liver, kidney and blood disorders".[48]
EXXON BATON ROUGE REFINERY EXPLOSION
In December 1989 an explosion at E Baton Rouge, Louisiana refinery was so powerful that debris was spread for miles; two men were killed in the incident.
1989 EXXON/MOBIL TORRANCE REFINERY HF SUIT
EXXON was sued by the city of Torrance, California because of leaks of hydrofluoric acid and other health and safety problems at the company's refinery. The suit, calling the facility a public nuisance, cited numerous instances of worker injury and death at the refinery as well as an instance in which fumes from the plant hospitalized eight students and two teachers at a nearby school. The city later filed criminal charges against the company and two of its managers in connection with a 1988 explosion at the refinery that killed one person and burned several others. In 1990 Mobil and the city reached a settlement of the public nuisance suit in which the company agreed to phase out or reformulate the use of hydrofluoric acid.
1989 LOS ANGELES RIVER POLLUTION
EXXON/Mobil pleaded no contest to criminal charges in California relating to pipeline ruptures the year before that had spilled more than 130,000 gallons of crude oil, much of it into the Los Angeles River and the city's sewer system
1985 TENGIZ, KAZAKHSTAN WELL BLOW-OUT
Tengiz Field has the highest pressure and is one of hottest reservoirs with one of the highest contents of poisonous hydrogen sulfide gas (19%) in the world. An explosion and blow-out in 1985 resulted in the death of one worker and a 600-foot high flame visible for almost 90 miles. It took over a year to cap the well and extinguish the fire.
1982 EXXON BLACK SUNDAY Firings in Colorado
EXXON terminates 2100 workers on Black Sunday in Colony Oil Shale Project Overnight the 2100 people employed on the project became unemployed, locked out and not even allowed to retrieve their personal effects when they showed up at the job site the next morning.
1980 EXXON OIL SHALE PROJECT, COLORADO
EXXON buys Amocos share of Colony Oil Shale Project for $300 million in Piceance Basin, Colorado. 2 years later EXXON quits the partnership and pays, The Oil Shale Company, TOSCO, $380 million in penalty. TOSCO becomes the precursor of PBF, the eventual buyer of EXXONs Torrance Refinery in 2016.
1979 TORRANCE REFINERY EXPLOSION
On Dec. 3, 1979, vapors leaking from
a gasoline storage tank at the Mobil Oil facility in Torrance ignited, causing a major explosion. Three people were killed. Firefighters contained the flames to the storage tank, then for two days allowed the remaining gasoline to burn. The smoke plume was seen all over the Los Angeles Basin