by Cid_Yama » Tue 17 Nov 2015, 23:13:28
One more time since Rockman prefers to pretend I never posted it before.
$this->bbcode_second_pass_quote('', 'A')t a meeting in Exxon Corporation's headquarters, a senior company scientist named James F. Black addressed an audience of powerful oilmen. Speaking without a text as he flipped through detailed slides, Black delivered a sobering message: carbon dioxide from the world's use of fossil fuels would warm the planet and could eventually endanger humanity.
“In the first place, there is general scientific agreement that the most likely manner in which mankind is influencing the global climate is through carbon dioxide release from the burning of fossil fuels,” Black told Exxon's Management Committee, according to a written version he recorded later.
It was July 1977 when Exxon's leaders received this blunt assessment, well before most of the world had heard of the looming climate crisis.
A year later, Black, a top technical expert in Exxon's Research & Engineering division, took an updated version of his presentation to a broader audience. He warned Exxon scientists and managers that independent researchers estimated a doubling of the carbon dioxide (CO2) concentration in the atmosphere would increase average global temperatures by 2 to 3 degrees Celsius (4 to 5 degrees Fahrenheit), and as much as 10 degrees Celsius (18 degrees Fahrenheit) at the poles. Rainfall might get heavier in some regions, and other places might turn to desert.
“Some countries would benefit but others would have their agricultural output reduced or destroyed,” Black said, in the written summary of his 1978 talk.
So they knew. Yet:
Then, toward the end of the 1980s, Exxon curtailed its carbon dioxide research. In the decades that followed, Exxon worked instead at the forefront of climate denial. It put its muscle behind efforts to manufacture doubt about the reality of global warming its own scientists had once confirmed. It lobbied to block federal and international action to control greenhouse gas emissions. It helped to erect a vast edifice of misinformation that stands to this day.
linkThe Oil Industry, and Exxon in particular, is guilty of engaging in an enterprise they knew would lead to loss of property and life, and endanger the habitability of parts or the whole of the planet due to dangerous climate change.
The Oil industry is guilty of engaging in a decades-long conspiracy to purposely and fraudulently mislead the public about the dangers of greenhouse gasses released by the burning of fossil fuels, that could lead to dangerous climate change.
They also engaged in a conspiracy to launch a public relations campaign to counteract the growing body of scientific evidence showing greenhouse gasses were hazardous and could lead to dangerous climate change, while at the same time the Defendants' own internal scientific research confirmed the findings that the burning of fossil fuels could have adverse effects to global temperature, rainfall patterns and global crop yields. The object of this campaign was to continue in their enterprise and profits, and to avoid adverse liability judgments, federal laws restricting their enterprise and adverse publicity.
Thus, the RICO Act applies.
Any enterprise engaged in, that would knowingly endanger the public and lead to loss of property and life is a criminal enterprise.
Conspiracy to hide this fact is a criminal act.
Conspiracy to mislead and/or deceive for the purpose of profit or to avoid liability is a criminal act.
Conspiracy to influence Federal regulation of such activity is a criminal act.
Conspiracy to mislead shareholders with regards to potential liability is a criminal act.
They also misled shareholders with regards to their ability to monetize their known reserves, knowing they would eventually be stopped. Shareholders stand to lose billions.
A precedent has already been set for use of the RICO Act in this manner.
US vs Phillip MorrisPhillip Morris tried to use the argument that the consumer of tobacco products were doing it to themselves. That argument didn't work for them either.
There are definitely people talking about it.
$this->bbcode_second_pass_quote('', 'B')ernie Sanders and Sheldon Whitehouse in the Senate, and Ted Lieu and Mark DeSaulnier in the House, have called on the Department of Justice to investigate ExxonMobil for possibly perpetrating fraud, and if warranted, launch a RICO investigation of the company (and other fossil fuel companies) similar to the tobacco industry lawsuit it launched, and won, more than a decade ago. In addition, four House members including Ted Lieu have also called on the SEC to investigate Exxon for fraud, perhaps under the Sarbanes-Oxley law.
The Sarbanes-Oxley law makes corporate executives personally and criminally liable for fraudulent statements on annual and quarterly reports that go out under their signature. The value of corporate assets — including, in the case of the carbon industry, its oil, gas and coal reserves — is part of every annual statement. If a corporation knows, for example, that climate change will inevitably “strand” (render valueless) a large percentages of those assets, and yet misdeclares and knowingly overvalues those assets … well, that sounds like investor fraud to me.
Once a Sarbanes-Oxley investigate starts, especially in the roiling climate of a RICO investigation, you may see not just price chaos, but CEO chaos as well — by which I mean the chaos of CEOs mounting their corporate jets for Switzerland, family and numbered bank accounts in hand.
If I were an investor, I would get out now. You are not going to see a wind-down, you are going to see a collapse, complete with rats fleeing the sinking ship.