
Oil oozes from the single-hulled Exxon Valdez in 1989
Poor Exxon. The biggest profits in the history of the world must, unfortunately, not be enough to cover the cost of using tankers that virtually eliminate oil spills. And of course Exxon, which was responsible for the country’s largest oil spill, is all about avoiding them in the future. Or not.
On March 24, 1989 — 20 years ago exactly — the Exxon tanker Valdez dumped 11 million gallons of oil into Prince William Sound and along 700 miles of its coast, killing tens of thousands of marine animals and birds, and mostly wiping out the sound’s then-thriving commercial fishing industry.
The company got off light, by filing endless appeals to its award of punitive damages (the type of damages intended to teach a lesson, as opposed to compensatory damages which should only repay financial costs), and by throwing the ship’s captain, a recovering alcoholic, under the bus.
Tanker industry veteran: “We in the market don’t understand why Exxon continues to do this”
On June 25, 2008, the U.S. Supreme Court rendered an opinion permitting the assessment of punitive damages…However, the Court held that the punitive damages award against Exxon was excessive and should be limited to $507.5 million, an amount equal to the trial court’s calculation of appropriate compensatory damages.
While $507.5 million sounds like a lot to you and me, for Exxon, it’s just an oil drop in the bucket. Recall that this company’s earnings in 2007, when gas hit $4 per gallon, was $40.6 billion. That record was broken last year, when Exxon posted $45.2 billion for 2008.
So you’d think they could afford to join almost every other oil refiner in using double-hull tankers. You’d be wrong.
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