Chevron Agrees to $13 Million Settlement for Oil Spills

Chevron Stock

Chevron (NYSE:CVX) has agreed to a settlement worth over $13 million for a series of oil spills in California, highlighting the state’s commitment to environmental protection and holding oil companies accountable.

The largest portion of the settlement, $5.6 million, is related to a significant oil spill in Kern County in 2019, where over 800,000 gallons (3 million liters) of oil and water were released into a canyon, impacting the state’s oil industry significantly.

In addition to the Kern County incident, Chevron will pay a $7.5 million fine for more than 70 smaller spills between 2018 and 2023, totaling over 446,000 gallons (1.6 million liters) of oil released and causing substantial environmental damage, including harm to wildlife and disruption of habitats.

California’s response underscores its commitment to transitioning away from fossil fuels and enforcing strict environmental regulations. The fines imposed on Chevron demonstrate the state’s resolve to hold businesses accountable for environmental harm and protect its natural resources.

Proceeds from the fines will be used for environmental restoration efforts, including plugging old and orphaned wells and acquiring and preserving habitats. Additionally, funds will support the Oiled Wildlife Care Network at the University of California, Davis School of Veterinary Medicine, ensuring swift responses to future oil spills.

Chevron, a major player in the global energy industry, is primarily focused on oil and gas, covering the entire supply chain from exploration and production to refining, marketing, and transportation.

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About the author: Stephanie Bédard-Châteauneuf has over seven years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, market news, and personal finance. She has an MBA in finance.