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Analysis Of The Torrance Refinery With 25 Safety Violations

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In an earlier report, Cal/OSHA had previously cited the Torrance refinery with 25 safety violations in November 2014 (Kenealy, 2015). Following the explosion, workers at the refinery voiced their concerns over these past and present violations and even conducted a strike involving 7,000 employees across 15 refineries. The strike was intended to bring awareness to the occupational hazards created by ExxonMobil’s failed safety protocols and procedures. By not addressing these problems earlier when these violations were identified, incidents like the Torrance explosion could perhaps be resolved before they become troublesome. The failure to do so has cost the company greatly in monetary damages as they pay out fines to the federal …show more content…

With new protocols in place, it is estimated by the EPA that ExxonMobil will spend up to $20 million to upgrade their existing storage units for wastewater to prevent future contamination of the environment (Fowler, 2013). State courts have also come down on ExxonMobil for not adhering to environmental codes. ExxonMobil agreed to pay $225 million to the state of New Jersey after it was found that its Linden and Bayonne refineries had been polluting the surrounding environment (Snow, 2015). The case initially brought forth an $8.9 billion lawsuit against ExxonMobil for polluting wetlands and bodies of water, but was negotiated and eventually settled between the two parties (Dawsey, 2015). While the financial impact of this lawsuit is clear, it is also important to note that these standards exist to protect the welfare of ecosystems and the people and animals who live in them. Government regulation has been shown to be strict in these matters and the result is a crushing economic loss for ExxonMobil. Moreover, ExxonMobil loses credibility in these regions as residents are made aware of the environmental damages happening in their own backyards. GROWING PRODUCTION COSTS The phrase, “You have to spend money to make money”, is no stranger to the oil and gas industry. ExxonMobil has seen an increase in its production costs over the past four years as the processes necessary to conduct business have proved to be more expensive. The very act of drilling

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