Valdez Spill, Undiminished, Turns Exxon a Profit

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Exxon reports that it earned $39.5 billion in 2006, giving the company the most profitable year ever for a US corporation. This mammoth figure has overshadowed other Exxon related news released today. A National Oceanic and Atmospheric Administration study has found that lingering crude oil from the Exxon Valdez spill in 1989 has barely budged. NOAA research chemist Jeffrey Short explained, “We expected the natural decay rate was 25% a year. But very little of the oil actually disappeared. What’s left is going to be there a long time.” Researchers now estimate that the oil is weathering at a rate of only 3% to 4% a year.

Continuing its campaign of
disinformation about all things environmental, Exxon spokesman Mark Boudreaux refuted the findings’ importance in an e-mail to USA Today: “There have been nearly 350 conference presentations or publications in peer-reviewed journals. Based on that body of scientific evidence, it is clear that there have been no effects on the environment that remain ecologically significant.”

How has Exxon remained so profitable, especially when it was responsible for the nation’s largest oil spill? It doesn’t hurt that the company managed to turn clean-up costs and legal fines it accrued in the aftermath of the disaster into tax write-offs. Additionally, by stretching its payments on a punitive damages settlement over 10 years, Exxon was able to collect millions in interest on money it had yet to pay.

–Celia Perry

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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