Texaco Case Study

1193 Words 5 Pages
History of Ethical Issues in Texaco
Chevron is one of the major leading global energy companies, with its values being that “Chevron respects the law, supports universal human rights, protects the environment and benefits the communities where Chevron works” (Chevron, 2014). Chevron is doing just the opposite in Ecuador then what its values state. It all started in 1964 when Texaco discovered oil in a remote region of Ecuador. Chevron acquired Texaco in 2001, knowing about the environmental issues surrounding the firm during 2001 including the mass amounts of pollution in Ecuador. Texaco was a well-known company and was entrusted by the government to drill oil in Ecuador, but Texaco decided to make cost-cutting operational decisions that resulted
…show more content…
“During the timeframe of 1964 to 1990, Texaco drilled for oil in the Ecuadorean Amazon. Chevron cut corners in order to save an average of $3 per barrel, but ultimately doing so contaminated the entire water supply of the country” (http://www.chevron.com/about/chevronway/). This did not occur in one single event, but rather it was a daily occurrence over 3 decades. These events included maintaining unlined waste pits so the toxic waste went into the soil where Ecuadorian people harvest their food. Chevron also set off dynamite next to residential homes without even asking permission. Also, Chevron had multiple oil pipelines rupture, and gas flaring-which is the act of burning off natural gas from oil and gas wells. Chevron drilled 350 oil wells in a rainforest that is about three times the size of Manhattan. Ecuador’s people are dependent on the streams and rivers for bathing, drinking, and fishing so the contamination has caused devastation in the community. “Over 18.5 billion gallons of toxic wastewater was dumped into streams and rivers, resulting in the entire water system becoming contaminated and unsafe to drink” (http://www.ran.org/chevrons-toxic-legacy-ecuador). “Two of the most dangerous chemicals to humans are found in the water in lethal concentrations these chemicals are benzene and polycyclic aromatic …show more content…
Waste oil is oil contaminated with hazardous waste and if so, must be managed subject to hazardous waste management standards. Waste oil requires proper recycling or disposal to avoid creating an environmental problem, which is what Chevron failed to do. Oil dumping was outlawed in major United States oil producing states like Louisiana, Texas, and California. This practice was outlawed decades before Chevron started drilling the Ecuador in 1967. Environmental protection laws and other oil dumping court decisions have noted that illegal dumping of oil, whether by individuals or business is a criminal offense punishable with fines or even jail time. They were essentially using Ecuador because these processes are outlawed in the United States and not in Ecuador so that they could save a $3 per barrel of oil. To save money they were using environmental practices that were not up to the industry standards and illegal in the United States. Since Ecuador needed the economic stimulation for its economy Texaco overlooked the laws in place in the United States because they knew that they could get away with these practices in Ecuador. The local Ecuadorian people were never consulted, nor was any permission granted from the people whose lives were affected the most. The permission was granted from the Ecuadorian government, but not from the people who had to endure the

Related Documents

Related Topics