Morning Meeting: 2/17/11

CEO: Christopher Choing

CFO: Sulay Desai

History of Chevron

• Merged with Gulf Oil Corp. in 1985.

• Merged with Texaco in 2001.

• In 2002, Chevron became the second largest U.S.-based energy company.

Today’s Issues

• Chevron was found guilty and charged 8.2 billion dollars in fines for pollution and restoration.

• Chevron initially denied the charges of polluting water and soil.

• Many are suffering from health problems in Amazon.

Health Issues

• Polluted water has caused:• Cancers

• Birth Defects

• Minor Illnesses

• Locals in the Amazon rely on the water to live• Drinking water

• Bathing water

• Cooking water

The Ethical Question

• Should we accept and take responsibility to what has happened?

• Should we help pay for clean up in Ecuadorian Amazon.

Our response: Yes!

• We will pay the 8 billion dollars to restore a healthy lifestyle to the people of the Amazon.

• Here’s a breakdown of the amount of money, according to a copy of the verdict:• $5.39 billion: To restore polluted soil• $1.4 billion: To create a health system for the community• $800 million: To threat sick people affected by pollution• $600 million: To restore polluted sources of water• $200 million: To recover native species• $150 million: To transport water from other sites to supply

community• $100 million: To create a community cultural reconstruction

program

•  Total: $8.64 billion

Plans and Considerations

• Texaco… Take responsibility

• Do more research

• Chevron will take a loss financially, but we are still a growing company

Questions/Comments

Sources

• http://www.texacotoxico.org/eng/node/144

• http://blogs.wsj.com/law/2011/02/14/a-breakdown-of-the-8-billion-chevron-judgment/

• http://online.wsj.com/article/SB10001424052748703584804576144464044068664.html?mod=WSJ_business_whatsNews

• http://chevrontoxico.com/

• http://amazonwatch.org/work/ecuador

• http://news.mongabay.com/2011/0214-hance_chevron.html