Ecuador and oil

Contents

    Ulla Lehtinen: "Indigenous peoples and oil" events in Finland 1999 
    Olli Tammilehto: A civilised world or a bloodsucker of the earth? 
    Background information on oil 
    Russia's oil production 
    Florian Stammler: Where does our oil come from? 
    Yeremei Aipin: Russia's oil industry and the development of rights of indigenous people 
    Agrafena Sopochina: "We Live on what the earth carries on itself" 
    Yuri Vella: Kogalym-Lor - the lake where a man died 
    Bruce Forbes: Industrial development in the Yamal-Nenets Area 
    Lidia Okotetto: I no longer understand the tundra that has loved me 
    Grigorii Anagurichi: A clash of civilisations at the ends of the world 
    Charity Nenebari Ebeh: The Ogoni experience 
    Magda Lanuza: Oil production in Central America 
    Ecuador and oil
    Arturo Yumbai Iligama: The war against the poor 
    Colombia, the U'wa and oil 
    Roberto Afanador Cobaria: Oil is blood of the earth 
    Workshop 1: The strategies of oil industry and the responses of indigenous peoples' movements 
    Workshop 2: Networking of indigenous peoples threatened by oil and gas exploration 
    Workshop 3: Northern Dimension
    Communique of the participants in the seminar "Indigenous Peoples and Oil" 
    Internet links
 The general situation

Ecuador is Latin America's sixth biggest oil producer and the fourth biggest exporter. The country produces about two million tonnes of crude oil a year, 60% of which is exported. The state-owned Petroecuador is the biggest producer, which directly or indirectly accounts for 80 per cent of oil production. Foreign companies, among others, Amoco, Atlantic Richfield Company (Arco), Elf Aquitaine, Maxus, Occidental, Oryx, Petrobas, Shell and YPF of Argentina are active in the country. Ecuador's biggest oil fields are in the east of the country in the Amazon rainforests. Petroecuador has announced plans to increase the country's annual oil production to over three million tonnes by the year 2002 and after that to 3.5 million tonnes a year.

Oil production in Ecuador has been destructive to the environment and to the indigenous peoples. Forty-five per cent of the Ecuadorian population, that is, about five million people are members of indigenous peoples. The Quichua form the biggest group. In spite of their large population in Ecuador they do not have much say in the country's decision-making. For instance only four members of parliament have indigenous background. Some of the indigenous peoples of Ecuador who live traditionally, inhabit the rain forests of the eastern part of the country, the same area where oil production takes place. Environmental destruction in the area is extensive. An estimated 65 billion litres (13 or 16 billion gallons) of crude oil have spilled into the Amazon stemming from accidents during the operation of oil companies. In addition 17 million litres of chemicals and by-products of oil production are emptied every week into the waters in the area. The toxic wastes produced in the course of production is gathered into storages with limited capacity. Rainforest is cleared to create space for expanding oil fields and the temporary oil cities that come along with them. One of the main objectives of the NGOs in Ecuador is to halt oil production in the protected areas. A large part of the oil in Ecuador is extracted in nature reserves, for instance, in Llagantes, Sumaco, Napo Galeras and Yasun national parks.

The present situation

A class lawsuit filed in a New York court by the Ecuadorian indigenous peoples against Texaco has caught international attention. They are demanding 1.5 billion dollars from Texaco for its environmental destruction. Texaco claims that the case does not concern the parent company because the subsidiary Texaco Ecuador and since 1992 Petroecuador have been responsible for the activities. The case is also considered a guiding legal case that might once again define the responsibilities of parent companies over action taken by their subsidiaries.

The economic situation of Ecuador has deteriorated dramatically in recent years. The change has brought most suffering to the indigenous population and other poor sectors of the society. The situation came to a head in January 2000 when President Jamil Mahuad ordered the country's currency, the sucre, to be replaced with the American dollar, which in practice would have made it impossible for poor people to pay back their debts. The planned dollarisation of the currency would have brought down the minimum wage to four dollars.

The announcement was met with massive demonstrations where particular actively participated indigenous people as well as poor peasants and workers and where indigenous peoples' organization CONAIE played a central role. Strikes were organised in support of the demonstration. They involved workers of the state-owned Petroecuador and that of three oil refineries. Trade unions and organisations representing indigenous peoples, blacks, small landholders and students as well as representatives of the army and the church formed their own so-called people's government and people's parliament.

On January 21, 5000 people occupied the high court and congress buildings in Quito. President Mahuad was forced to relinquish power and in his place stepped Col. Lucio Gutierez and former high court judge Carlos