Corporate Criminality in the Oil Industry: A Sobering Reality

Major oil companies have landed on the list of the "Top 100 Corporate Criminals," a report created by Russell Mokhiber of Corporate Crime Reporter and Robert Weissman of the Multinational Monitor. The study highlights eight oil, pipeline, and barge companies that pleaded guilty or no contest to corporate crimes in the 1990s and were fined. Exxon Corp. tops the list, making its second appearance due to environmental incidents, including the massive Exxon Valdez oil spill and another spill that emptied 567,000 gallons of home heating oil into a waterway. Other notable companies on the list include Iroquois Pipeline Operating Co., Colonial Pipeline Co., Chevron Corp., Saybolt Inc., Unocal Corp., Doyon Drilling Inc., and Marathon Oil Co.

Key Takeaways:

• Eight oil, pipeline, and barge companies were ranked on the list of Top 100 Corporate Criminals, with Exxon Corp. ranking fifth and 96th place due to its environmental incidents.
• Exxon Corp.'s fine for the Exxon Valdez oil spill was $125 million, and for the home heating oil spill was $200,000.
• Iroquois Pipeline Operating Co. was fined $15 million for guilty pleas in numerous criminal violations of the Clean Water Act.
• Colonial Pipeline Co. was fined $7 million for its failure to exercise reasonable care leading to the rupture of its pipeline that spilled 960,000 gallons of diesel fuel.
• Chevron Corp. pled guilty to 65 Clean Water Act violations and paid $8 million in criminal and civil fines.
• Saybolt Inc. was fined $3.4 million for falsifying documents to EPA regarding the testing of reformulated gasoline.
• Unocal Corp. was fined for failure to report the leaking of up to 8.5 million gallons of petroleum over 40 years.
• Doyon Drilling Inc. was fined $1 million after admitting to 15 counts of violating the Oil Pollution Act.
• Marathon Oil Co. was fined $900,000 for criminal violations of the Clean Water Act.

Statistics:

• Exxon Corp.'s total fine for environmental incidents was $325,000.
• Iroquois Pipeline Operating Co.'s fine for Clean Water Act violations was $15 million.
• Colonial Pipeline Co.'s pipeline rupture spilled 960,000 gallons of diesel fuel.
• Chevron Corp.'s clean up efforts cost $8 million.
• Saybolt Inc.'s falsified documents resulted in a $3.4 million fine.
• Unocal Corp.'s leaking petroleum is estimated at 8.5 million gallons over 40 years.
• Doyon Drilling Inc.'s fines were $1 million for 15 counts of violating the Oil Pollution Act.
• Marathon Oil Co.'s fine for Clean Water Act violations was $900,000.

Sources:

• Russell Mokhiber, Corporate Crime Reporter
• Robert Weissman, Multinational Monitor
• Exxon Corp.
• Iroquois Pipeline Operating Co.
• Colonial Pipeline Co.
• Chevron Corp.
• Saybolt Inc.
• Unocal Corp.
• Doyon Drilling Inc.
• Marathon Oil Co.