Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

The 'Exxon Knew' controversy is plaguing Rex Tillerson — here's what it means

Published 01/11/2017, 03:03 PM
Updated 01/12/2017, 09:18 AM
© Carlos Barria/Reuters

Outside the hearing on former ExxonMobil CEO Rex Tillerson’s nomination as secretary of state, 15 people dressed as T-Rex dinosaurs joined hundreds of protesters.

In addition to calling Tillerson a climate dinosaur — a reference to Exxon's history of climate change denial — the demonstrators’ rhetoric centered around one phrase: #ExxonKnew.

The allegation refers to two damning investigations conducted by the LA Times and Inside Climate News in 2015, both of which found that Exxon leaders knew humans were causing climate change as early as 1977, yet intentionally misled the public about global warming while lobbying the government to block emissions regulations. The reports sparked outrage, spreading online with the hashtag #ExxonKnew.

Inside Climate News’ series, which was published after an eight-month investigation, suggests that Exxon was briefed by scientists and even conducted its own robust climate modeling programs for years, all of which suggested that fossil fuels were to blame for spiking global temperatures. (The LA Times’ report confirms the same.) But despite this information, Exxon continued to push for the appointment of officials who broke with the mainstream opinion on climate change, and set up the Global Climate Coalition, a lobbying partnership devoted to opposing controls on carbon pollution.

A 2007 report from the Union of Concerned Scientists also suggested that Exxon used the same tactics as the cigarette industry to promote uncertainty about the facts of climate change.

Tillerson actually does acknowledge that climate change is a problem (unlike EPA nominee Scott Pruitt and President-elect Donald Trump). However, environmental advocates believe Exxon’s record speaks louder than Tillerson’s words. According to an analysis by NextGen Climate published by the Huffington Post this week, Exxon gave more than $6.5 million to groups that deny fossil fuels contribute to global warming between 2008 and 2015. The company vowed nine years ago to stop funding groups that promoted misinformation about climate change.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Senator Tim Kaine questioned Tillerson about that history during the hearing today, asking him whether Exxon Mobil (NYSE:XOM) knew about climate change long ago, despite what the company has publicly stated.

Tillerson declined to comment, suggesting that he can’t speak for the company now that he no longer works there.

“Do you lack the knowledge to answer my question, or are you refusing to answer my question?” Mr. Kaine asked.

“A little of both,” Mr. Tillerson replied.

Both Kaine and various environmental groups took this response as confirmation of the “Exxon Knew” controversy.

Tweet Embed:
https://twitter.com/mims/statuses/819234488660197377
It's shameful Tillerson refused to answer my questions on his company's role in funding phony climate science. Bottom line:

May Boeve, executive director of grassroots environmental organization 350.org, immediately issued a statement highlighting Tillerson’s refusal to answer Kaine’s question. “Tillerson is still lying about what Exxon knew about climate change,” Boeve said “Tillerson deserves a federal investigation into Exxon’s lies, not a cabinet appointment.”

Stephen Kretzmann, Executive Director of Oil Change International, an organization that works to expose the dangers of fossil fuels and promote a clean energy transition, echoed these sentiments.

”Unsurprisingly, Tillerson essentially pled the fifth when asked about Exxon’s long history of denying climate science, explicitly refusing to answer the question, or accept any responsibility for the actions of the company of which he was CEO for the last decade,” he said. “The record is clear: Exxon Knew.”

Various states, including Massachusetts and California, are currently investigating whether Exxon Mobil indeed lied to the public and its shareholders, since that could mean the company engaged in fraud and violated various environmental laws. In November 2016, New York Attorney General Eric Schneiderman subpoenaed over a million of Exxon’s internal documents.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Whether or not Tillerson becomes our next Secretary of State, Exxon’s past will undoubtedly continue to plague him.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.