Steve Coll - Private Empire: ExxonMobil and American Power
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An extraordinary and monumental expos of Big Oil from two-time Pulitzer Prize winner Steve Coll (The Washington Post)
In Private Empire Steve Coll investigates the largest and most powerful private corporation in the United States, revealing the true extent of its power. ExxonMobils annual revenues are larger than the economic activity in the great majority of countries. In many of the countries where it conducts business, ExxonMobils sway over politics and security is greater than that of the United States embassy. In Washington, ExxonMobil spends more money lobbying Congress and the White House than almost any other corporation. Yet despite its outsized influence, it is a black box.
Private Empire pulls back the curtain, tracking the corporations recent history and its central role on the world stage, beginning with the Exxon Valdez accident in 1989 and leading to the Deepwater Horizon oil spill in the Gulf of Mexico in 2010. The action spans the globe, moving from Moscow, to impoverished African capitals, Indonesia, and elsewhere in heart-stopping scenes that feature kidnapping cases, civil wars, and high-stakes struggles at the Kremlin. At home, Coll goes inside ExxonMobils K Street office and corporation headquarters in Irving, Texas, where top executives in the God Pod (as employees call it) oversee an extraordinary corporate culture of discipline and secrecy.
The narrative is driven by larger than life characters, including corporate legend Lee Iron Ass Raymond, ExxonMobils chief executive until 2005. A close friend of Dick Cheneys, Raymond was both the most successful and effective oil executive of his era and an unabashed skeptic about climate change and government regulation.. This position proved difficult to maintain in the face of new science and political change and Raymonds successor, current ExxonMobil chief executive Rex Tillerson, broke with Raymonds programs in an effort to reset ExxonMobils public image. The larger cast includes countless world leaders, plutocrats, dictators, guerrillas, and corporate scientists who are part of ExxonMobils colossal story.
The first hard-hitting examination of ExxonMobil, Private Empire is the masterful result of Colls indefatigable reporting. He draws here on more than four hundred interviews; field reporting from the halls of Congress to the oil-laden swamps of the Niger Delta; more than one thousand pages of previously classified U.S. documents obtained under the Freedom of Information Act; heretofore unexamined court records; and many other sources. A penetrating, newsbreaking study, Private Empire is a defining portrait of ExxonMobil and the place of Big Oil in American politics and foreign policy.
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A LSO BY S TEVE C OLL
The Bin Ladens
Ghost Wars
On the Grand Trunk Road
Eagle on the Street (with David A. Vise)
The Taking of Getty Oil
The Deal of the Century
PRIVATE EMPIRE
EXXONMOBIL AND AMERICAN POWER
Steve Coll
THE PENGUIN PRESS
NEW YORK
2012
THE PENGUIN PRESS
Published by the Penguin Group
Penguin Group (USA) Inc., 375 Hudson Street, New York, New York 10014, U.S.A. Penguin Group (Canada), 90 Eglinton Avenue East, Suite 700, Toronto, Ontario, Canada M4P 2Y3 (a division of Pearson Penguin Canada Inc.) Penguin Books Ltd, 80 Strand, London WC2R 0RL, England Penguin Ireland, 25 St. Stephens Green, Dublin 2, Ireland (a division of Penguin Books Ltd) Penguin Books Australia Ltd, 250 Camberwell Road, Camberwell, Victoria 3124, Australia (a division of Pearson Australia Group Pty Ltd) Penguin Books India Pvt Ltd, 11 Community Centre, Panchsheel Park, New Delhi 110 017, India Penguin Group (NZ), 67 Apollo Drive, Rosedale, Auckland 0632, New Zealand (a division of Pearson New Zealand Ltd) Penguin Books (South Africa) (Pty) Ltd, 24 Sturdee Avenue, Rosebank, Johannesburg 2196, South Africa
Penguin Books Ltd, Registered Offices:
80 Strand, London WC2R 0RL, England
First published in 2012 by The Penguin Press,
a member of Penguin Group (USA) Inc.
Copyright Steve Coll, 2012
All rights reserved
Map illustrations by Gene Thorpe
LIBRARY OF CONGRESS CATALOGING IN PUBLICATION DATA
Coll, Steve.
Private empire : ExxonMobil and American power / by Steve Coll.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-101-57214-6
1. Exxon Corporation. 2. Exxon Mobil Corporation. 3. Petroleum industry and tradePolitical aspectsUnited States. 4. Corporate powerUnited States. 5. Big businessUnited States. I. Title.
HD9569.E95C65 2012
338.7'6223380973dc23
2011044722
No part of this book may be reproduced, scanned, or distributed in any printed or electronic form without permission. Please do not participate in or encourage piracy of copyrighted materials in violation of the authors rights. Purchase only authorized editions.
While the author has made every effort to provide accurate telephone numbers, Internet addresses, and other contact information at the time of publication, neither the publisher nor the author assumes any responsibility for errors, or for changes that occur after publication. Further, publisher does not have any control over and does not assume any responsibility for author or third-party Web sites or their content.
Contents
List of Maps
Authors Note
F our journalists made important contributions to this book while working as researchers during the four-year life of the project. Ben Van Huevelen, who is now the managing editor of the Iraq Oil Report, worked on that subject and ExxonMobils litigation with Venezuela, as well as on corporate responsibility issues in Africa and Indonesia. Megha Rajagopalan, a 2008 graduate of the University of Maryland who is now studying in China under the Fulbright Scholar Program, worked on global warming, the Exxon Valdez spill, and phthalate regulation; chapters five and twenty-two benefited greatly from her research. Ann OHanlon, a former Washington Post reporter who now works at the Justice Department, reported on many subjects, but especially on campaign finance and lobbying; her work particularly supported chapters three, seventeen, twenty-two, and twenty-three. Haley Cohen, a 2011 graduate of Yale University who is now on a university fellowship in Latin America, recontacted many interview subjects, checked facts and interpretations, and added fresh reporting throughout. The book benefited from other supporters and collaborators; the acknowledgments provide an accounting. I am grateful and deeply indebted to all.
Selected Cast of Characters
AT EXXONMOBIL
Russell Bowen,Marylandterritory manager
John Paul Chaplin, lead country manager, Nigeria, circa 20052009
Ken Cohen, vice president of public affairs
Tim Cutt, lead country manager, Venezuela, 20052007
Steven K. Davidson, outside lawyer in Venezuelan litigation
Theresa Fariello, director of the Washington office, 2009 to present
Brian Flannery, astrophysicist, climate policy adviser
Rosemarie Forsythe, Russia adviser, planner for international political strategy
Edward G. Galante, senior executive, contender to succeed Raymond, retired 2006
Otto Harrison, lead executive on Exxon Valdez cleanup
Ralph Daniel Nelson, lead country manager, Saudi Arabia, 20012004, director of the Washington office, 20052009
Lee R. Raymond, chairman and chief executive, 19932005
James Rouse, director of the Washington office, late 1990s2005
Ron Royal, lead country manager, Chad, circa 2006
James F. Sanders, lead outside lawyer, Alban v. ExxonMobil
Frank Sprow, vice president, Safety, Health, and Environment, 20002005
Sherri Stuewer, senior executive, environmental policy, 2006 to present
Rex Tillerson, upstream executive with responsibility for Russia, later chairman and chief executive, 2006 to present
Glenn Waller, lead country manager, Russia, circa 2003
Martin J. Weinstein, lead outside lawyer, John Doe v. ExxonMobil
Ronald I. Wilson, lead country manager, Indonesia
IN THE U.S. GOVERNMENT
Representative Joe Barton, R-Texas, 1984 to present
George W. Bush, president, 20012009
Richard B. Cheney, vice president, 20012009
Representative John Dingell, D-Mich., 1955 to present
Don Evans, secretary of commerce, 20012005
Douglas Feith, undersecretary of defense for policy, 20012005
Robert Gelbard, ambassador to Indonesia, 19992001
Christopher Goldthwait, ambassador to Chad, 19992004
Barack Obama, president, 2009
Judge Louis F. Oberdorfer, United States District Court, Washington, D.C.
Colin Powell, secretary of state, 20012005
Anton Smith, United States charg daffaires, Equatorial Guinea, 20082009
Alexander Vershbow, ambassador to Russia, 20012005
Marc Wall, ambassador to Chad, 20042007
Paul Wolfowitz, deputy secretary of defense, 20012005; president, World Bank, 20052007
IN AFRICA
Victor Attah, governor of Akwa Ibom State, Nigeria, 19992007
Idris Dby, president of Chad, 1990 to present
Simon Mann, former British Army officer, led coup attempt in Equatorial Guinea
Teodoro Obiang Nguema, president of Equatorial Guinea, 1979 to present
IN ALASKA
Joseph Hazelwood, Jr., captain, Exxon Valdez
Mandy Lindeberg, biologist, N.O.A.A.
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