Get Adobe Flash Player to see this content.

About This Video

Big Oil's Legal Battle Over Amazon Pollution

Title:

Big Oil's Legal Battle Over Amazon Pollution

Published: Fri, 11 Sep 2009

Description: 'Crude' Documentary Director Joe Berlinger on the legal battle between the Ecuadorian people and Texaco.

-

Automatically Generated Transcript (may not be 100% accurate)

" Hard it is the film with Chevron will not want you to see it has been called a documentary that is about big oil. And little people three years in the making filmmaker Joe Burlington latest work of look at the fight between indigenous people of Ecuador. The big oil joining us this mr. Burlington director of the documentary. -- Thanks for having me appreciate it we are covering the story actually about the lawsuit and it's 47 billion dollar lawsuit between the indigenous people and against relates to Texaco now Chevron because several bottom. What did you see when you're down there."

" While when I went down to that region I was just blown away by the level of pollution I mean I think one of the big failings of the film is that it's two dimensional and you don't quite get. How bad it is you know hundreds of on line. Pits and leaching petroleum waste into. The rivers and streams that feed the Amazon River. For three decades the plaintiffs alleged that Texaco and they're drilling operations instead of re injecting the toxic waste of oil drilling. Back into the well cavity which is the standard operating procedure do here in America exactly for three decades that that toxic waste its cult formation water. Water that's been mixed with a crude. Oh over the millions of years when it comes up from the ground the oil goes off to market the marketable crude in the water is supposed to be re injected into these back into dormant wells instead. Literally for three decades it was pumped into. The rivers and streams that feed the Amazon River which is the home of you know five well originally six indigenous tribes one of the tribes is now extinct. -- and it was just heartbreaking to see the effects skyrocketing rates of cancer childhood leukemia. We Chevron denies responsibility for this. I'm not smart enough to figure out who's right who's wrong I was just presenting both sides of the story but what I saw was utterly devastating what the impact on these indigenous people."

" What about the responsibility though of the government and not having seen the film yet joke. The government of Ecuador and the state run oil company of Ecuador who was partners with Texaco then. And Texaco by the way does have a website about the six point and they what they blame him. Petro Ecuador for the clean up problem."

" In the -- the plant is also have a website to -- you wanted to get the other side of -- you know it's a complicated case. You know the the plaintiffs allege that. You know first of -- the lawsuit was filed in 93 in the United States. Chevron and Texaco fought for nine years to move into Ecuador so it it is the there has been such a long delay it is easy now to say oh its -- Ecuador we left in 92. But the reality is that lawsuit was initially filed in 93. When there was pollution are photographs there's documentation that the pollution existed than. And in addition. The plaintiffs allege that the theory of the cases that should Texaco -- the sole operator. Of these fields. As part of a consortium that they were the operator they designed and created a system that was designed to pollute and that. That polluting infrastructure was turned over to the state oil company so the theory the lawsuit is the people who built the house are responsible for the mess."

" The legal community called the form shopping and generally look for jurisdiction. And a court to hear your case that would be viewed as the most favorable I would think. Chevron would want to have it here you say they want to have it in. Let it seems like inverse logic. Why would they want to have the case tried in Ecuador while they felt that the officially -- Felt as like his corruption in the government. Well if not illegal -- I don't you know -- I wasn't there I can't cast aspersions on Texaco's motivations and you know they felt that. The damage was there the affected people were there and that would be the you know the forum in which to do it the plaintiffs wanted it done here because it's just much easier you know one could say the Texaco do not want. The press on and also it back then there was a very positive relationship between the government. And Texaco and maybe they thought you know -- actually never even go to trial. Found some of the reviews and from him the reviewers have read and and documentaries and it really it did it doesn't make these plaintiff lawyers really look that great. That it's really kind of the big gun lawyers versus big oil if you will who's really looking out for the people who were still there I mean that's a great question I mean for me again I don't take sides in the lawsuit I showed both sides of a very complicated conflict. And one of the one of the main themes of the film is that our legal structures. Actually our actually art art in adequate for dealing with these kinds of large scale environmental and humanitarian crises this is a struggle has gone on for seventeen years. Chevron has promised a lifetime of litigation they have used that phrase this thing is probably going to go on for another seventeen years. Meanwhile another 23 generations of people are."

" Are going to die but don't these governments ultimately have to look after -- and people -- that we mentioned Chernobyl but did Soviet government and turn noble. This instance with the people of Ecuador. It isn't that also it's where we're lacking well global."

" The government is not. Blameless in this situation but you know and through that -- but Ecuador that have made some money absolutely you know Texaco is didn't walk in Ecuador and say they were drilling. That there were deals made absolutely and land sold absolutely transfer. Absolutely but you know there's also corruption that at the highest levels of government and a lot of these Latin American countries at the time. And the -- and the people who designed the system you know are ultimately responsible according to the lawsuit I'm really not taking sides in the lawsuit at. -- Now taken up thank you very much Joe Bruins are bankers are having a big fight."

" Who by the way judge directed. A sometime monster things Metallica pack."

" It's one of the best ever watch it -- granite thank you for it included an amount I would suspect in our story was a little weird that it but it the -- I saw the -- you know Lars -- is watching you really. But you got a lot of fun. That he had a lot of funded and good drummer. Is a very good drummer and a good art collector and -- a collector yup there it Jack thank you so -- have."

More Videos From FOX Business
Chevron's Best Kept Secret

Chevron's Best Kept Secret

Chevron CEO

Video|Fri, 6 Mar 2009|More from FOX Business
|Chevronfound at0:17, 0:35, 0:53, 1:10, 4:08

big oil is not necessarily a friend of solar saving energy and Chevron EnergySolutions relieve release proves that Jim Davis thank you very much for joining us explicitly on fox business. You're always welcome back thank you very much it's fascinating to see it -- that. Chevron is doing this and they have committed a lot of resources and -- hiring on a -- will receive unemployment at eight
is a goldilocks. Would you be surprised that a the division of Chevron . Was named one of the fast company's top five most innovative. Clean energy companies and up first on fox this interview list
Exactly -- Well shouldn't got a division it guys called Chevron energy solutions and I am with the CEO Jim Davis a guy who. Cannot sleep at night because he's so busy coming up with ways for companies buildings government schools to save energy. This is surprising to lot of people that Chevron would have a division that does this.
Times we feel like we're Chevron's best kept secret. Although what's surprising to most people is that we've done nearly a thousand projects.
what I I was thinking. She's -- was supposed to be calling Chevron energy solutions to say I'm going to pay you to help me save energy but a lot of people don't have. --
this country is not churning out enough engineers. Mathematicians and scientists and Chevron is very interested in sort of fostering out but you say it has to start kindergarten through twelfth.
Exxonmobil vs Chevron

Exxonmobil vs Chevron

Oil rivalry between Exxonmobil and Chevron.

Video|Mon, 4 Aug 2008|More from Money for Breakfast
|exxon valdezfound at1:56

It's kind ExxonMobil and Chevron have moved to Trace back to John D Rockefeller's standard oil. Formed an 1870 standard oil gained such a stranglehold of the oil market that in 1911. It was broke. Fifteen to 34 different companies. Two of the spinoffs were -- standard and symphony predecessors to both Exxon and Mobil. A third standard oil of California. Or so -- later became Chevron . The modern day oil error has -- an enormous profits at home that was political -- abroad. When OPEC cut off its oil supply to the US in 1973. The world's attitude towards oil changed forever. Exxon and others where does forced to escalate exploration and development outside the Middle East. By the early 1980s oil would you surplus. Prices once again felt. Then in 1984 hours so -- and gulf oil underwent the largest merger in history today taking on the names Chevron . Yeah. -- perception changed forever when it tanker the Exxon Valdez . Crashed off the coast of Alaska spilling nearly eleven million gallons of crude oil. Exxon has since paid over three billion dollars in compensatory damages and cleanup effort. The incident a public relations nightmare. Was ultimately made worse by excellent slow response. The late 1990s and the -- 2000 plus substantial mergers convincing the market. First Exxon and Mobil completed and even three billion dollar merger in 1999. That was followed by Chevron and Texaco coming together in 2001. Woman ChevronTexaco. Texaco was dropped from the pain in 2005. They look cool prices soaring both
Chevron 2Q Earnings Plunge 71%

Chevron 2Q Earnings Plunge 71%

FBN's Sandra Smith reports on Chevron's second-quarter earnings.

Video|Fri, 31 Jul 2009|More from FOX Business
|exxonfound at0:19, 1:27

And with a salesman but right now oil giant Chevron. Quarterly earnings 171%. On lower commodity price Anderson it is here with the latest -- what the future looks like not only for the company but. Oil demand which is really the critical like that's the critical question because what was the big problem for Chevron -- while Exxon which reported yesterday. Cheaper oil prices year over year oil prices averaging much lower prices and they were in the same quarter last year at this second quarter. About 53 dollars a barrel. Last year's second quarter oil averaged about a 110 dollars a barrel so. Take a look at what battle due to profit the actual number coming in for Chevron 87 cents a share. First of the estimate the average analyst estimate 95 cents a share. And compare that to a year ago the profits for Chevron. Two dollars ninety -- ninety cents a share so that's really that big a fact of the cheaper oil prices but that wasn't the only thing. Wing on Chevron's profits here also the company said it suffered from week -- the weaker
the outlook will be International Energy Agency. We cited this yesterday for Exxon saying that they don't expect that. Demand levels will return to 2008 levels until 2011. So that's one thing about something you need to Chevron. In their earnings announcement today is that they actually stood out for this reason they boosted. -- net oil production during the second quarter by about 5% compared at that Exxon yesterday which reported that the world's largest oil producer. They're production fell 3% and then you've got Europe's largest producing well I wrote that shall. They -- production by 6% so some way that Chevron is standing out their results is that -- productions the levels actually rose. During the quarter so coming warned that this Friday ending -- they said that the benefits of the higher oil prices speaking quarter over quarter. Would be -- largely offset by the weaker dollar and the poor refining margins you know it's one thing that the oil prices come down it makes it cheaper. But you're not benefiting as much at the pump. When you actually turn that gasoline out so. The dollar a major theme here for their overall second quarter earnings. And that's really the company got -- forecast 400 million dollar cotton -- bottom line. -- that we carry it US dollar was much more than that you're talking about nearly 450 million dollars so. A lot of this is expected at the end of the day much worse than expected as far as analysts Wall Street was expecting. These stocks are -- no no energy sector among your -- and -- sectors area under part is the worst