ExxonMobil Subsidized Misleading of Public on Global Warming, Says Watchdog

In a nod to tobacco industry tactics, ExxonMobil allegedly subsidized a $16 million campaign of misinformation about global warming between 1998 and 2005 in an attempt to create uncertainty in the public's mind about climate change. A report by non-profit group Union of Concerned Scientists indicates that the oil giant gave the money to 43 groups that question the relationship between greenhouse gas emissions and global warming. Over the past 30 years, the earth has experienced a steep warming trend that is believed by most of the scientific community to be due to the emission of these gases through the burning of fossil fuels. The watchdog group asserts that ExxonMobil used the advocacy groups to misrepresent scientific studies, emphasize selected facts, and create the false impression of a debate among scientists on a subject that is not, in fact, in dispute. It accuses ExxonMobil of falsely asserting a desire to uncover "sound science" and exploiting its access to the Bush administration to manipulate federal policy to its advantage. Tobacco companies that used similar tactics were ultimately found liable for racketeering. Exxon calls the scientists' report "yet another attempt to smear our name and confuse the discussion of the serious issue of CO2 emissions and global climate change." In related news, the New York State attorney general is threatening legal action against ExxonMobil to force it to address a massive, decades-old oil leak under a Brooklyn neighborhood. Environmentalists and residents of Greenpoint, the affected neighborhood, are also preparing substantial class action suits.

• Sources: Newsday, Reuters, Bloomberg
• Related commentary: Ceiling Not Yet in View for Big Oil Stocks, Exxon Mobil Is Gearing Up For Continued Success, ExxonMobil: Black Magic, Oil Economics in a Nutshell. Conference call transcripts: Q3 2006.
• Potentially impacted stocks and ETFs: ExxonMobil Corp. (XOM). Competitors: BP plc (BP), Chevron Corp. (CVX), Royal Dutch Shell plc (RDS.A). ETFs: WisdomTree LargeCap Dividend (DLN), WisdomTree Total Dividend (DTD), streetTRACKS DJ Wilshire Large Cap (ELR).

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Comments

[Stan Ross:]

From the Paradox of Our Age:

<blockquote>
These are times of fast foods but slow digestion; Tall man but short character; <strong>Steep profits but shallow relationships.</str... It’s a time when there is much in the window, but nothing in the room.
</blockquote>


--Redza

2007 Jan 04 05:37 AM