1985: United States v. Exxon
The RICO Act's usage against Philip Morris and other tobacco companies would establish a fascinating example for future usages of the law. Specifcially, it was on how the tobacco companies did so by "engaging in numerous acts of fraud to further a conspiracy to deceive the American public". As such, it was believed that similar actions could be treated in the same way. Even just planning to do so would be persecutable, given how the RICO Act knowed that conspiring to do said illegal actions would also be in violation. However, no one expected who the next target of the law would be, courtesy of the Udall Administraton.
Petroleum companies, starting with none other with Exxon. Accused of conspiring to engage in numerous acts of fraud to further a conspiracy to deceive the American public... on the impact of fossil fuels on the global climate.
Ever since the fall of the tobacco industry, there has been this subtle sense of encourage for people to come forward to expose wrongdoing for the sake of everyone’s benefit along with reassuring people on it. This along with the results of climate change studies and the response of corporations on it was the push certain scientists needed to start making their way over to Justice Department officials and reporting their findings along with their concerns on what companies like Exxon were doing. It was a slow and secretive process though not really enough for a case to be built until recently. Mainly the acquisition of outlines and plans for these fossil fuel companies to begin a disinformation campaign for voters to raise skepticism and dissuade the idea of manmade climate change along with records of the minutes of the meetings these discussions were held, including the names of the various companies involved. Eventually, they believed they could charge these companies for violating the RICO Act, namely for conspiring to perpetuate fraud as part of a conspiracy on lying to the American public. The ozone hole revelation just served to really cement the importance of this.
Unsurprisingly, the build-up to the case was fierce and ugly. Having been caught flat-footed by this, the companies responded with various accusations and preparing their legal teams. However, they already lost one of their major points as they muddled into the quagmire. The news media spread the story like wildfire; that big fossil fuel companies were planning a conspiracy to lie to the American public, no doubt for profit. With the memory of the case against Philip-Morris in mind, the people were quite upset at this. Congress was divided, primarily as some of these companies were funding their campaigns or others had their state-based economies in petrol or others. However, the stage was already set and the idea of manmade climate change and its dangers were already rooted in public consciousness. Not just for Americans, but also the world as it spread across the globe.
The first few days was an enlightening period for many Americans. With the outline of what the companies could do presented, it was relatively easy in figuring out the why (for the sake of maintaining profit among avoiding repercussions) and the how (through the funding of several organizations and scientific figures). However, the big picture was in the ramifications. Why was this considered a big deal? And various scientists shared their results to the jury and the public, who couldn’t look away. It was an extensively sobering ordeal, presented that the lackadaisical approaches and usage could result in a more dangerous world decades down the line. Besides the shocking scale on the intellectual front, the emotional side played as big if not a bigger part. For many young parents, future parents and even grandparents, the idea of leaving their children and grandchildren a dangerous world did not sit well with them. Others found the notion of their twilight years or so on in a manmade hell to be frightening. While the defense put a fight, it was based on technicalities and minute issues. But that was cold comfort for them as they had lost the war and public opinion shifted and cemented, their clandestine affairs backfiring on them and instead exposing to the world not just what they knew, but also their reactions to all of this.
Unsurprisingly, Exxon and many of these companies were found guilty. Various high-ranking officials would be charged and there was a large need to address the new issue. How would the United States deal with climate change done through their current means? How would the world deal with it, many of them having watched it unfurl before them, with even the Soviets shaken by it.
For the Americans, it was another hit toward the trust in corporations. While the RICO Act still had its limits, the point was done and people knew. They were afraid, nervous and angry. But in the same way Udall has charged them for it and the shockwaves coming out, they were looking to them for solutions, emboldening the former hippies and the dreamers with the new blood to help pursue this opportunity on great change.
This did not affect just the petrol companies. It cast an eye of suspicion onto coal and even natural gas lost a bit of its trust. But as more companies got into the fray, it revealed just how big the problem was and what would need to be handled. One such periphery involver was none other than Koch Industries. Around the time, a brutal civil war in the company’s heads had occurred. One between Fred and Bill Koch against Charles and David Koch. New stock rules and other troubles brought about by the economic turmoils delayed the fight longer and longer until it would be caught up here. The war with taking over the company got intertwined with the revelations here and while there was a need to buy back the stocks for the future sake of the company, the battle was over whether to make company public or maintain private, given it was an oil firm that was expanding into other branches. This ordeal worsened the civil war and was an example of how others companies were facing not just scrutiny, but also angry stockholders.
Some worried about the potential economic troubles, but Udall provided reassurance along with a note that if such revelations caused economic trouble, then things like oil probably should not be foundational to macroeconomics, citing the Oil Crashes. There was also the scale of opportunity to be had here. Many saw this as their chance to push the US toward renewables and other grand goals involving renewals.
As petrol companies were forced deal with the fallout and other fossil fuel sources felt other people come at them, this period would be viewed as a global changing point in terms of politics, economics and energy.
