Big Oil

By Maximillian Alvarez, Megan Milliken Biven, James Hiatt, and Clarke - The Real News Network, December 14, 2022

By Lopa Pal, Elizabeth Bast, Nnimmo Bassey, Colin Rees, and Rebecca Solnit - Oil Change International, November 7, 2022

By Dan Bacher - Daily Kos, October 25, 2022

Despite California’s image as a “green” and “progressive state,” Big Oil and Big Gas continue to exert huge influence over California regulators in the promotion of carbon capture and storage as a “tool” to addressing climate change.

On October 24, over 80 climate and environmental justice groups sent a letter urging California Air Resources Board Chair, Liane Randolph, and California Governor Gavin Newsom to reject the use of carbon capture and storage (CCS) for fossil fuel infrastructure like oil refineries, gas-fired power plants, and other oil and gas operations in the state’s 2022 Climate Change Scoping Plan.

This letter was sent after new lobbying disclosure research revealed the CA CCS lobby, dominated by fossil fuel interests organized by the CA Carbon Capture Coalition, spent more than $13 million lobbying California’s Scoping Plan, Governor’s Office, Legislature and the Air Resources Board in the first six months of 2022, according to a press statement from a coalition of over 80 climate and environmental groups.

“California must have a climate roadmap that prioritizes rapid and direct emissions reductions at the source, centers Indigenous Peoples and frontline communities of color, and fully phases out the production, refining, and use of fossil fuels at the pace that science and justice require,” the letter states.

“Yet, the current plan to increase the state’s reliance on carbon capture and storage (CCS) undermines that vision and the state’s ability to meet its climate goals. CCS regularly fails to meet its promises, requires high use of electricity and water, puts communities at real risk of harm, and would prolong the production and use of fossil fuels that are driving the climate emergency and polluting communities. We urge you to adopt a Scoping Plan that rejects the use of CCS for fossil fuel infrastructure such as refineries, gas-fired power plants, and other oil and gas operations,” the letter continues.

By Neil Rothnie, Vivian Price and Gabrielle Zeliazkov - Global Climate Jobs, September 16, 2022

By R.C. Smith - PhD Dissertation, September 1, 2022

Oil and finance have long played central roles in defining how the global economy has developed and this is especially true of the modern neoliberal economic system. One factor of their relationship that is often unexamined is how oil industry profits and liquid capital influence the developments of finance. Understanding their relationship during the modern period first requires understanding this petrocapital cycle, how it influences economic development, and the ways that its rise to prominence in the 1970s transformed the global capitalist financial system.

We are living in a world that has been shaped by the demands of oil and finance. Under the neoliberal capitalist order these two sectors enjoyed central roles in setting the pace of the global economy. Shocks in the price of oil, as recent events like the record-high oil prices experienced following Russia’s 2022 invasion of Ukraine have reminded us, tend not to stay confined to the fuel pump and radiate throughout our economic system. One particular avenue of influence that is often not seen but is widely felt is the reinvestment of oil profits in global financial markets. This question was first thoroughly examined in Mahmoud el-Gamal and Amy Myers Jaffe’s Oil, Dollars, Debt, and Crises: The Global Curse of Black Gold which traced the relationships that formed the endogenous petrocapital cycle, which is the reinvestment of the profits reaped by oil exporters in financial markets and how this changed global credit and financial markets. The Real Oil Shock builds on their earlier work by digging deeper into the birth of this process in the Oil Shocks of the 1970s. It will do this by examining how OPEC’s windfall capital fundamentally changed financial markets, practices, and the creation of money.

What The Real Oil Shock is examining is not a new phenomenon in economic history. The human experience abounds with instances where dramatic redistributions of wealth and resources created significant changes in the existing social and economic order. An excellent example comes from the Spanish colonization of the Americas. Exploitation of gold, silver, and other precious metals in the Americas provided the Spanish monarchy with an enormous windfall of liquid capital. This was spent by the Spanish monarchy on projects of the state, fighting wars, and expanding their influence in Europe. This put increasing quantities of Spanish doubloons in circulation outside of domestic markets. Spanish gold had become the capital for Dutch, English, and French merchants for financing their own commercial, industrial, and colonial enterprises whose activities were the foundation of early modern capitalism in Europe.

Download this document (link).

By Peter Mencini, et. al. - Amazon Watch, May 31, 2023

By Marisol Cantú, Micheal Hayes, and staff - Richmond Progressive Alliance, May 16, 2022

Flaring at the Richmond Lubrications Oil Plant. April 14, 2-4 pm.

United Steelworkers (USW) Local 5 workers have been on strike at Richmond's Chevron Refinery since March 21, 2022. Since then, workers and community members have carefully documented flaring events at the refinery, which is currently run by strikebreakers who do not have the necessary training to safely operate the equipment. Below are three important documents of this extremely unsafe situation: a) a letter addressed to the Bay Area Air Quality Management District (BAAQMD) by organizer Marisol Cantú, articulating the current risks to our surrounding community and demands of relevant inspection agencies; b) a photographic gallery of flaring events taken during the strike by workers and community observers; and c) a letter authored by a USW Local 5 refinery worker, describing the extensive training he and his colleagues receive that is necessary to keep the community safe (and that current employees operating the plant do not have).

By Jessica Goodheart - Capital & Main, May 16, 2022

Tefere Gebre’s biography has touched on the major crises affecting the planet: the massive rise in refugees, skyrocketing economic inequality and climate change. The first of those cataclysms was thrust upon him when he was just a teenager. He fled the civil war in Ethiopia, enduring a perilous 2½ week journey through the desert. “Sometimes you’d find yourself where you were a week ago,” he told Orange Coast magazine in 2014. He spent five months in a refugee camp in Sudan before arriving in Los Angeles, where he attended high school.

As an adult, Gebre became active in the labor movement, organizing trash sorters in Anaheim and holding leadership positions at the Orange County Labor Federation and the AFL-CIO, where he served as executive vice president. In February, he took the position as chief program officer at Greenpeace USA, the 3 million-member direct action organization known for its high-profile banner drops, opposition to whale hunting and campaign against plastic waste.

Capital & Main spoke to Gebre two days before Greenpeace held its first-ever protest in solidarity with fossil fuel workers. Two boats with activists from Greenpeace USA and United Steel Workers Local 5 members formed a picket line from land into San Francisco Bay as an oil tanker headed to Chevron’s Richmond refinery in what Gebre described as “a genuine attempt to build a transformational relationship” with the striking workers. Nearly 500 refinery employees went on strike over safety and salary concerns in March. The two sides have yet to come to an agreement. The oil tanker crossed the picket line, according to sources at Greenpeace.

By Shiva Mishek - Richmond Progressive Alliance, May 4, 2022

“To strike at a man's food and shelter is to strike at his life, and in a society organized on a tooth-and-nail basis, such an act, performed though it may be under the guise of generosity, is none the less menacing and terrible.”

—Jack London, The Scab, 1904

This week, United Steelworkers (USW) Local 5 enters its seventh week on strike at the Richmond Chevron refinery. Over 500 Chevron employees have been on strike since March 21, rejecting a contract that would codify a meager raise, unsafe working conditions, and Chevron’s so-called “standby” policy.

Chevron would also like to drastically reduce death benefits and pay for the Lubrications plant refinery workers, thereby creating a two-tier wage system and offering wages that do not keep pace with inflation (a reduction from an annual 3% wage increase to .6%).

Refinery operations have continued by employing strikebreakers. Advertisements placed by Chevron offer pay of $70 an hour for non-union workers lacking adequate refinery experience, with the explicit mention of possible work for up to 5 months. Meanwhile, inflation has soared across the United States, and refinery workers must also contend with the skyrocketing costs of basic needs.

Unsurprisingly, the high cost of gas prices in California has been somewhat attributed to the labor action. The day the strike began, the Guardian wrote, “But if the strike were to halt operations at the refinery, that could negatively affect fuel prices in California, which already has the highest gas prices in the US at $5.86 a gallon, according to the American Automobile Association.” Meanwhile, Chevron just reported earnings of $6.3 billion for the first quarter (Q1) of 2022, compared with $1.4 billion in earnings during Q1 of 2021. 

It’s typical to see workers villainized when they go on strike—teachers are depriving students of needed support; nurses and doctors are leaving patients to die in their hospital beds. But it is Chevron, not the workers, that has put Richmond at risk for decades.