Will Exxon, Chevron Yield to Fracking Pressure?
Chevron Corp. (NYSE:CVX) and Exxon Mobile Corp. (NYSE:XOM), the two biggest oil companies in the U.S., are under pressure from environmentalists and shareholders to reveal more information about hydraulic fracking practices.
Thirty percent of shareholders from both companies voted to disclose more information about hydraulic fracking, a risky drilling practice that involves shooting chemical-laced water and sand into shale rock in order to break open the rock, releasing oil and gas. The oil industry claims that the practice is safe when done properly, but fracking has raised concerns about water contamination from environmentalist groups.
The motion to disclose more about fracking received about the same number of votes last year, which shows a growing concern about the practice from investors and the general public. Chevron said 31 percent of its shareholders backed the proposal in comparison with 27 percent last year. Thirty percent of Exxon’s shareholders supported the motion both this year and last.