Marathon Oil: Rampant Destruction of Jobs, Safety and Environment

by Jonathan Mukes

A case study of rampant destructive behavior by corporations in Detroit is Marathon Oil and Marathon Petroleum. On September 4 around 200 Teamster members at Marathon’s refinery in southwest Detroit went on strike, demanding job security and a 6% wage increase to combat inflation. Marathon’s disregard for both its workers and the residents of Detroit is longstanding.

Not So Humble Beginnings

Marathon was initially called “The Ohio Oil Company” in 1887. John D. Rockefeller was dominating the oil industry in the state, spending vast amounts of money to obtain factories and refineries.

Rockefeller focused on cutting costs and undercutting the competition, as well as illegal corporate espionage and price wars, which damaged workers who found themselves in a volatile labor market. This tactic of rapid consolidation and heavy-handed market tactics eventually earned Rockefeller the title of most wealthy man in America.

This aroused suspicion from the general public as well as the Ohio state government, which at this time had a much stricter stance on anti-trust laws. Ohio forced the separation of “Standard Oil” and “The Standard Oil Of Ohio.” Later the Supreme Court stepped in and applied the Sherman Antitrust Act, which at the time was primarily used against labor unions, to split Standard Oil into 43 different entities including Exxonmobil, Chevron, BP, and The Ohio Oil Company.

After The Ohio Oil company bought Transcontinental Oil, they rebranded and began calling themselves Marathon in 1962.

The Detroit Refinery

Drawn to the Motor City by the booming auto industry, tens of thousands of Black people fled the Jim Crow South and moved into the area’s modest homes in the 1950s and ’60s, becoming first-time homeowners. For many of them, a century after slavery and still in the midst of segregated schools and neighborhoods, the American Dream was finally within grasp. At this point the refinery in Detroit was increasing in size every decade since the rebranding.

Marathon’s refinery in Detroit stands as a major contributor to environmental degradation in the area, worsening the already rising rates of respiratory illnesses . Detroit, with some of the nation’s highest asthma rates, witnesses a glaring discrepancy in health outcomes: adults in the city are 46% more likely to suffer from asthma compared to the wider Michigan populace. Emitting approximately 140,000 barrels of oil daily, the refinery releases an array of 29 hazardous chemicals, posing health risks to the predominantly Black and Hispanic, low-income residents residing in its vicinity. The Environmental Protection Agency has identified benzene and dioxin emissions from the refinery, both recognized carcinogens, further compounding the health hazards. The remaining 27 toxins contribute to the surge in respiratory diseases, including asthma, as well as liver failures observed in the community.

Residents deal with elevated incidences of asthma, cancer, neurological impairment and cardiovascular diseases. The presence of pollutants such as lead, which is extremely hazardous to children, underscores the desperate need for action. The effects of air pollution claim the lives of over 650 individuals annually in Detroit. For many residents, the prospect of relocating remains an impossible dream, destroyed by financial issues. With an average household income hovering around $24,000, families encounter barriers to seeking homes in less contaminated areas.

Even for those capable of considering moving, the reality remains, since the residential properties remain unsold. The strategic and purposeful acquisition of homes by Marathon during its expansion initiatives, such as the 2012 expansion in Oakwood Heights, which was done in order to increase capacity, shows the company’s ability to buy land for further development. While at the same time, majority black neighborhoods need to fight for years for buyouts, as evidenced by the mistreatment of communities like Boynton on the refinery’s southwest side.

The illnesses endured by these marginalized communities are not confined to chemical pollutants but extend to the influence of the systemic racism that widely exists within policies and across societal practices. Within Detroit, the contamination of the environment is simply the price demanded for the accumulation of wealth, where capital accumulation and power dynamics have consistently overshadowed consideration of the welfare and lives of the city’s inhabitants. Industry’s relentless intrusion has exacted a profound toll, regardless of vocal opposition from residents.

Throughout all of this the financially strained city of Detroit offered support to Marathon’s expansion in 2007, granting a $175 million tax break. In exchange, Marathon committed to enhancing local employment opportunities, prioritizing the hiring of Detroit residents. Revelations emerged in 2014, however, that only a fraction of newly created positions were being filled by city residents. Of the 514 jobs that Marathon could offer after the expansion, only 30 went to Detroit residents. This highlights the consistent, glaring disparity between promised benefits and realized outcomes.

Rashida Tlaib’s Civil Disobedience

In 2013, the residents of Detroit were confronted with the discovery of heaps of black ash, identified as petroleum coke or “petcoke,” lining the banks of the Detroit River. Originating as a byproduct of Marathon’s oil refining processes, petcoke’s toxicity renders it unfit for domestic combustion, prompting its export for international sale. The extraction of this waste by a company affiliated with the billionaire Koch brothers highlights the cross-section between corporate interests and environmental exploitation. Residents were further bothered by the sight of trucks transporting the ash without reasonable containment measures. In a bold display of civil disobedience, then-state representative Rashida Tlaib trespassed onto the site to gather samples for analysis, which then revealed the presence of hazardous chemicals such as vanadium and selenium. Selenium ingestion is associated with a spectrum of symptoms including bronchitis, nausea, headaches, and abdominal distress.

Researchers have studied the implications of systemic oppression perpetuated by the energy sector, particularly evident in the life-threatening illnesses and burdens imposed upon communities of color residing near oil and gas facilities. Manifesting through a series of health, economic, and social hazards, this systemic inequity intensifies existing vulnerabilities of marginalized populations. The disproportionate exposure of African American communities to harmful air pollution adds to the severity of health risks, a phenomenon exacerbated by heightened poverty levels.

The placement of high-polluting facilities within or in close proximity to communities of color further exacerbates the unequal distribution of health impacts. Marathon’s conduct over the past decades, disregarding state air pollution control regulations on multiple occasions, highlights its indifference to the well-being of low-income Black and Hispanic communities residing in the vicinity of its refinery in southwest Detroit. With repeated violations of emissions limits for fine particulate matter, carbon monoxide, and hydrogen sulfide, Marathon has directly imperiled the health of working-class residents, exacerbating Detroit’s notorious status as the asthma capital of the United States.

Accountability and Consequence

Despite being held accountable through three separate consent orders issued by the Michigan Department of Environment, Great Lakes, and Energy (EGLE), Marathon’s actions betray a pattern of disregard for regulatory oversight and community welfare. The penalties imposed, totaling $243,353, pale in comparison to the profits reaped by the company, revealing a gross imbalance in accountability and consequence. Marathon exploits legal loopholes such as the Air Pollution Control Exemption program, effectively evading substantial tax liabilities on acquired properties intended for pollution mitigation efforts. This maneuver further deprives local governments of much-needed tax revenue, undermining essential services and public education that should serve as lifelines for communities disproportionately affected by the refinery’s noxious emissions.

Examining Marathon’s environmental transgressions across multiple states reveals a concerning pattern of contempt for both legal regulations and community well-being. For instance, in April 2023, the California refinery violated pollution regulations, resulting in a $27.5 million fine. Despite being designed for renewable fuels, this refinery emitted nitrous oxides, contributing to ground-level ozone, acid rain, and health issues like respiratory problems and visual impairment. Similar challenges were faced in Texas in January of this year, where the El Paso County Commission unanimously voted to challenge Marathon’s refinery permit renewal because of excessive pollution.

In 2022, Marathon’s emissions included over 800,000 tons of carbon dioxide and methane, major contributors to climate change. Studies reveal the detrimental effects on nearby communities, particularly in Texas, where residents within 10 miles of a refinery suffer from higher cancer rates, worsened by lower household incomes. Over 30% of Texans near refineries have annual incomes below $37,000, a disturbing correlation between industrial pollution and economic vulnerability.

Teodoro Obiang, President of Equatorial Guinea

Support for Nationalist Dictators

The disregard for human life displayed by Marathon extends beyond the borders of the United States, delving into the heart of Equatorial Guinea. Under the grip of Teodoro Obiang, the country has been entrenched in corruption, repression, and impoverishment for decades despite its oil wealth..The billions in oil revenue, instead of benefiting the people, serve as a means for Obiang and his inner circle to amass personal fortunes, leaving the citizens deprived of education and healthcare. Many of those billions and millions were directly given to Obiang by Marathon Oil, before it split from Marathon Petroleum.

Equatorial Guinea’s status as the fourth-largest oil producer in sub-Saharan Africa has attracted significant foreign investment, particularly from oil giants like Marathon. The complicity of these corporations in perpetuating a regime marked by human rights abuses and economic exploitation is morally bankrupt. Despite some semblance of cooperation with investigations, secrecy surrounds their dealings and the significant payments made directly to the dictator.

The Challenge to Corporate Exploitation

In the grand scheme of Marathon’s profit-driven decisions, the lives of Black and Brown working-class individuals seem disposable, sacrificed at the altar of shareholder dividends. Amidst this reality, a glimmer of hope emerges in the form of organized labor action. The recent decision by Marathon workers, represented by the Teamsters Union, to authorize a strike speaks volumes about the power dynamics at play and the potential for collective action to challenge corporate exploitation.

Labor action is not just about securing fair wages and working conditions; it is also about asserting dignity and demanding accountability from corporations that prioritize profits. The workers’ demands, such as pay increases to match inflation and changes in work schedules, reflect a broader struggle for economic justice. Importantly, labor action can intersect with environmental advocacy in profound ways. The hazardous working conditions and environmental risks posed by Marathon’s operations are linked, as highlighted by union president Steve Hicks about safety hazards at the Detroit refinery. “This plant, it takes anywhere from two to three years to train someone to do this job,” he said. “They have scabs in there. It’s not safe for the citizens of Detroit. They need to put our workers back in.”

By mobilizing around labor demands, workers have the opportunity to leverage their collective power to address not only immediate workplace issues but also broader environmental concerns. In demanding safer working conditions, workers are also advocating for healthier communities and environmental stewardship. Expanding the scope of labor action to include environmental demands can galvanize broader support from environmental activists, community organizers, and concerned citizens, creating a formidable coalition capable of challenging corporate interests. As we navigate the complex cross-section of labor rights and environmental justice, it becomes increasingly evident that our struggles are interconnected.

Jonathan Mukes is Chair of Detroit DSA’s Black and Brown Alliance

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The Detroit Socialist
The Detroit Socialist

Published in The Detroit Socialist

The newspaper of the Detroit chapter of the Democratic Socialists of America

Detroit Democratic Socialists of America
Detroit Democratic Socialists of America

Written by Detroit Democratic Socialists of America

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