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Robert Rapier

Robert Rapier is a chemical engineer in the energy industry. He has 25 years of international engineering experience in the chemical, oil and gas, and…

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Will The Exxon Ruling Impact Future Climate Cases?

By Robert Rapier - Dec 23, 2019, 4:00 PM CST

As I explained last month in Exxon Knew. Did They, Though?, perceptions outside of an oil company are often at odds with what is happening inside the company. I provided several examples.

I explained that the things I have seen as an insider frame my opinion of the climate change investigations involving ExxonMobil. To recap, the company is under investigation by several states and was being sued by the state of New York, which charges that the company engaged in “a longstanding fraudulent scheme” on the economic risks of climate change.

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It was my expectation that outside perceptions would give way to reality, and that’s what happened. ExxonMobil was found not guilty of fraud in the case.

Manhattan Supreme Court Justice Barry Ostrager’s ruling in favor of ExxonMobil stated in part:

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“The Office of the Attorney General failed to prove, by a preponderance of the evidence, that ExxonMobil made any material misstatements or omissions about its practices and procedures that misled any reasonable investor.”

This isn’t surprising to me, but the public often conflates certain facts to develop an overall impression of a company. Thus, many felt that it was a no-brainer that ExxonMobil was guilty of the charges. Related: For The First Time Ever, Shell Signs $10B Emissions Linked Financing

As I explained in the previous article, ExxonMobil has funded anti-climate change organizations. But again, that’s not necessarily because they are trying to hide something from the public. Certainly, it would benefit the company to cast doubt on the fact that burning fossil fuels is leading to climate change, but I didn’t think it likely that it would be proven that their motivation was to cover up a smoking gun some felt they held.

Ostrager’s decision echoes that argument:

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