Category: Ecuador

Petroleum Drilling in the Ecuadorian Amazon Basin: an Injustice to Indigenous Peoples

Background 

Ecuador is small Latin American country in area, but rich in culture and ecological biodiversity.  Before 1967, the Ecuadorian economy relied mainly on agricultural exports and was one of the poorest countries in Latin America.  In 1967, the petroleum company Texaco-Gulf discovered a large oil reserve in the Oriente, or Amazon basin.  This discovery of one of the largest oil fields in the world drastically reshaped the economy and the environment. GDP increased, and net foreign-exchange earnings grew significantly (San Sebastián & Hurtig, 2004).  Today, Ecuador is still mainly dependent on its petroleum resources that account for more than half of its export earnings and 2/5 of its public sector revenues. Ecuador’s current external debt is $19.91 billion USD (Central Intelligence Agency, 2015), and the government pays 80% of its foreign debt payments through oil revenue (Environmental Resource Center, 2015).  Oil extraction is profitable but shortsighted, and is the country’s current greatest asset. However, there were many social and environmental injustices that occurred as a result of the oil boom.

The start of oil exploration and extraction in 1967 by Texaco put Ecuador down a path of petroleum dependence and environmental degradation. Oil extraction is an invasive process that requires the construction of a vast infrastructure of access roads, oil wells, pipelines and heavy machinery. The process creates a toxic sludge byproduct of crude oil and chemicals used for extraction.  In order to cut costs, Texaco deposited the waste in unlined open pits. There were no regulations on how far these pits had to be from communities, and many overflowed during high precipitation events.  The toxic sludge of crude oil and chemicals would then flow directly into people’s yards, and through agricultural zones into waterways. Additionally, under the Texaco consortium’s control, many intentional and unintentional oil spills occurred along unmanaged pipelines, and during the extraction process.  Between the years 1972 and 1993, 18 billion gallons of toxic wastewater was dumped into the Ecuadorian Amazon basin, 750 times larger than the infamous Exxon Valdez oil spill in the Gulf of Mexico (Amazon Watch, 2015).

The Ecuadorian government allowed Texaco to extract petroleum virtually unregulated, and allowed vast contamination of the water and land. In 1990 the Ecuadorian state oil company Petroecuador took over Texaco’s operations in the Amazon basin.  Petroecuador continued using Texaco’s previous infrastructure and techniques for extracting oil.  Very few improvements have been made in extraction techniques since the beginning of Texaco’s drilling. 

The Amazon basin in Ecuador referred to as el Oriente, contains immense biodiversity.  There are over 100,000 km2 of tropic rainforest, and houses over 500,000 people or about 4.5% of Ecuador’s population.  Eight groups of indigenous peoples and many peasants live in the Amazon basin, and depend on the area’s natural resources for the culture and for the livelihoods (San Sebastián & Hurtig, 2004).  They use the stream and river water for cooking, cleaning, drinking and recreation.  The water and land is their life.  Within one hectare of land in the ITT oil field region of the Amazon, there are more species of trees than in all of North America.  The basin is rich in petroleum, biodiversity, and sensitive cultures of people. 

As a result of the billions of gallons of toxic wastewater dumped into Amazonian rivers, many indigenous communities began to experience severe health impacts. A 1993 a community health study suggested that communities in oil producing areas have higher rates of morbidity, abortion, dermatitis, skin mycosis and mal-nutrition, compared to communities without oil production.  The people living in these areas have no access to treated water continue to eat toxic fish, drink the water, and bathe in the water (San Sebastián & Hurtig, 2004).  These toxins do not biodegrade, and will remain in high concentration in this area.

The Amazon basin is a massive expanse with little exposure to the mainstream media.  It is shaded by tropical rainforest, and inhabited by communities who have limited interaction with outside society.  The communities in the Amazon basin can be labeled as “peripheral communities” that tend to be remote, economically marginal, politically powerless, culturally defensive and environmentally degraded (Sovacool & Dworkin, 2014, p. 203).  The indigenous community’s lack of formal education, information, and representation made it easier for the Ecuadorian government to make decisions that poorly effected such communities without rebellion.  Those affected did not see profit, only degradation of their land and livelihoods.

Energy Justice Framework:

 

The following elements of the Energy Justice Framework apply to the energy injustice that occurred as a result of Texaco-Gulf’s oil drilling, and the Ecuadorian’s government’s lack of ethical control over the situation.

Sustainability: acting so that any impacts on the environment, society, and the economy are minimized and allow people to live well today and in the future.  

The oil drilling in the Amazon basin is destroying the natural state of the rainforests, the water supply, and the wildlife abundance.  The indigenous communities depend on the water and land for survival. If oil extraction continues to be mismanaged and irresponsible, future generations will suffer from increasing health problems, and will struggle to provide their communities with sufficient food and water supplies.  Oil extraction and the degradation of the Amazon basin take advantage of present day people and cheats future generations out of a healthy environment in which to live.  The Ecuadorian government through their company Petroecuador is being unsustainable by looking at the short term benefits, instead of the long term negative implications.  They are utilizing an unrenewable energy source that contributes to climate change, and building a country that will be unable to sustain itself in the future on oil from its intrinsically valuable Amazon basin. Future generations will bear the burden of today’s energy needs.

Due Process: the respect of every person’s right of fair treatment by the judicial system, and respecting their human rights.

Indigenous communities who have inhabited the Amazon basin for centuries are being displaced from their land and sickened by the pollution. In order to abide by due process, every person should have the right to fair and informed consent about projects that will directly affect them (Sovacool & Dworkin, 2014, p. 369).  Indigenous groups have been given no power in the decision making in oil extraction construction, and the Ecuadorian government has given itself power to allocate any land to oil extraction. Additionally, social and environmental impact assessments were required by Ecuadorian law.  Texaco never published a single report (Amazon Watch, 2015).  

Responsibility: every person, community, and nation must take accountability and interest in the protection of their environment and work to prevent damages.

The Ecuadorian government was not responsible in its dealings with Texaco and the indigenous communities.  The government had few initial environmental regulations, and little legal enforcement.  They saw the Amazon basin as a basin of money to pay off external debt, and they did not take into consideration the livelihoods of the people living there or of the ecological health of the region. Additionally, Texaco did not take responsibility for its actions and fought against paying compensation fees to the indigenous communities until 2012, when they were finally found guilty.  However, they are still in court proceedings and no money has been paid.

 

References

Amazon Watch. (2015, 3 14). Chevron Toxico: The Campaign for Justice in Ecuador. Retrieved from http://chevrontoxico.com/

Central Intelligence Agency. (2015, 3 6). Ecuador. Retrieved from The World Factbook: https://www.cia.gov/library/publications/the-world-factbook/geos/ec.html

Environmental Resource Center. (2015, 3 17). The True Costs of Petroleum Map: The World. Retrieved from http://www.biofuels.coop/archive/world.pdf

Rights, T. C. (1994). Rights Violations in the Ecuadorian Amazon.

San Sebastián, M., & Hurtig, A.-K. (2004). Oil exploitation in the Amazon basin of Ecuador: a public health emergency. Rev Panam Salud Publica/Pan Am J Public Health, 205-211.

Sovacool, B. K., & Dworkin, M. H. (2014). Global Energy Justice. Cambridge: Cambridge University Press.

 

 

Ecuador’s Energy Policy and Injustice

enst311 ecuador case study paper

Introduction to the Case Study

Ecuador is a developing country with deep economic problems, resource abundance, and significant biodiversity. Gonzalo Escribano’s 2013 article “Ecuador’s energy policy mix: Development versus conservation and nationalism with Chinese loans” describes how the Ecuadorean government struggles to balance its responsibilities to its people and its environment. These two objectives are very difficult to reconcile, however, because the remedy for one issue exacerbates the problems of the other. As a developing nation, Ecuador needs income to bolster its impoverished population. However, its main sources of income are extractive industries that directly harm its unique environments and ecosystems.

 

Background on Ecuador

Ecuador is a developing nation and the smallest oil producer of OPEC (Escribano 154). Of its population of 15.6 million people, 25.6% live below the poverty line (CIA World Factbook). Additionally, its GDP of $10,600 USD per capita is the 116th smallest in the world (CIA World Factbook). Economically, Ecuador depends on oil production. The country produces 526,000 bbl/day and is the 22nd largest exporter of crude oil globally (CIA World Factbook). Due to the growing national debt and widespread poverty in Ecuador, redistributive economic policies are in demand, and these programs necessitate an interest in the lucrative oil industries for funding. Geographically, Ecuador contains many of the world’s most unique and fragile ecosystems, including parts of the Amazon Rainforest and the Galapagos Islands, as well as other coastal and mountainous regions. These delicate regions often overlap with the areas that produce oil. Ethnically, Ecuador is very diverse, with the vast majority of the population identifying as mestizo, and with other white and indigenous segments. The wealth disparity between ethnicities and geographical locations is quite large in Ecuador, creating another imperative for the redistributive social programs (CIA World Factbook).

 

The Project

A wide range of energy related issues exist within Ecuador, and because of the rarity of the environment there, a spotlight can be shone on the nation’s mitigation between development and conservation. The other two case studies in the Ecuador section deal specifically with oil drilling in the Amazon and the expansion of hydroelectricity in the country. This case study, however, provides context for the other two by presenting the framework of Ecuadorean policy- and decision-making. Escribano’s article, especially when put in conversation with other texts, sheds light on the policy tensions underlying Ecuador’s fight to balance conservation and development.

 

Energy Justice Framework

Scholars Benjamin K. Sovacool and Michael H. Dworkin developed a platform called the “Energy Justice Framework” as the capstone of their book Energy Justice: Problems, Principles, and Practices. They define an energy-just world “as one that equitably shares both the benefits and burdens involved in the production and consumption of energy services, as well as one that is fair in how it treats people and communities in energy decision-making (Sovacool and Dworkin 5). In their framework, they propose eight principles that would bring about energy justice. For this case study, the three most relevant elements of the framework are Sustainability, Due Process, and Responsibility. This case study is framed as an energy injustice because Ecuador fails to fulfill any of these principles. While trying to balance conservation and development, Ecuador has failed to fully do either, leaving both the people and the environment with inadequate protection.

 

Sustainability

Sustainability means development that meets current needs while ensuring that the needs of future generations can also be met (Sovacool and Dworkin 369). Escribano’s description of Ecuadorean energy policy presents an energy injustice for sustainability in two ways: first, the energy needs of the present are not being met, and critical environmental sacrifices are being made, which will negatively impact future generations. Ecuador suffers from severe poverty, and not all citizens have access to electricity (Escribano 153, 155). As Escribano points out, Ecuador’s best hope for revenues to remedy these issues is the oil industry (154). The lucrative nature of many extractive industries makes them a tempting option for quick economic boosts, but often these processes come with many negative externalities (Griswold 3). This trend continues in Ecuador. Correa, the current president, espouses a platform of redistributive programs to alleviate poverty, and these are mainly funded through oil revenues. However, since Correa came to power in 2007, these programs have had limited success. Clearly, then, Ecuador is failing to meet the needs of the present. Additionally, Ecuador does not satisfy the other requirements of “Sustainability” because its policies are damaging to landmark ecological areas, such as allowing oil drilling in the Amazon. Sustainability in the Energy Justice lens would require an ideal balance between conservation and development, and Ecuador has not yet found that balance.

 

Due Process

Sovacool and Dworkin’s next principle, Due Process, asserts respect as a fundamental aspect of energy justice (368). Both respect for human rights and laws are necessary to achieve energy justice. Once again, Ecuador fails to meet this requirement. Escribano’s article focuses on the conservation efforts in Ecuador, specifically the Constitution’s assertion of Nature Rights (155). Ecuador is the first country in the world to include a declaration of the rights of nature in its constitution (Art. 71, Ecuador Const.) and these rights are on par with the rights of humans. While Correa’s government claims to be pro-conservation, in reality, little has been done to ensure conservation and that these rights of nature are upheld (Escribano 154). The best example of the injustices brought on by a lack of due process is the failure of the Yasuni Initiative. The proposal was intended to raise funds internationally to protect the Yasuni area of the Amazon, the most bio-diverse area in the Western Hemisphere (156), from oil drilling. If Correa could gather half of the money that could be made from drilling, he would preserve the area. The funds were not raised before the deadline, and the Yasuni region is now available for drilling. The legal loopholes exploited for the Yasuni initiative are part of another large trend in extractive industry legislation, in that due process is not given (Rabe and Borick 326). For Ecuador, despite the government’s insistence in its own conservationism, upholding the rights of nature directly contradicts its ability to provide for its citizens. Escribano’s article demonstrates that injustice results from a lack of respect for both the people’s and the environment’s rights.

 

Responsibility

Finally, Sovacool and Dworkin describe the principle of responsibility as essentially the requirement for nations to reduce negative externalities, particularly for the environment (371). Once again, Ecuador’s energy policy fails to reduce externalities, creating injustices in society. One example of Ecuador’s shirking of responsibility is the Yasuni initiative itself, since the proposal essentially places responsibility on the international community (Escribano 156). Additionally, because many Ecuadoreans, especially in rural or poor communities, are marginalized by new oil drilling or hydro plants and left without representation, the government is irresponsible toward its own citizens. These same citizens are the ones without access to the energy produced on their lands. Escribano’s article illustrates Ecuador’s balancing act between development and conservation, but doing both half-heartedly is irresponsible and ineffective.

 

Conclusion

In putting Escribano’s article in conversation with Sovacool and Dworkin’s Energy Justice Framework, the injustices in Ecuador’s energy policies become apparent. Balancing development and conservation has left both the Ecuadorean people and environment unprotected. By refusing to commit to development, Ecuador is sacrificing its people, who desperately need revenue from oil. By refusing to commit to conservation, Ecuador is sacrificing its environment, including some indigenous communities, who need protection from industry. Moving forward, it is clear that Ecuador must change its policy strategy to both uphold its constitutional rights for nature and people, while expanding its ability through other industries to gather revenue to alleviate poverty. Once the right balance is found, energy justice can be achieved in Ecuador.

 

 

 

 

Works Cited

Ecuador Const. Ch. 7, Art. 71. Web.

http://therightsofnature.org/wp-content/uploads/pdfs/Rights-for-Nature-Articles-            in-Ecuadors-Constitution.pdf

Escribano, Gonzalo. “Ecuador’s Energy Policy Mix: Development Versus Conservation and Nationalism with Chinese Loans.” Energy Policy 57 (2013): 152-159. ScienceDirect. Web. 4 Feb. 2015.

Griswold, Eliza. “The Fracturing of Pennsylvania.” The New York Times 17 Nov. 2011: Web.

Rabe, Barry G., and Christopher Borick. “Conventional Politics for Unconventional Drilling?” Review of Policy Research 30.3 (2013): 321-40. Web. 9 Feb. 2015.

Sovacool, Benjamin K., and Michael H. Dworkin. Global Energy Justice: Problems, Principles, and Practices. Cambridge University Press, 2014. Print.

The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013     .

https://www.cia.gov/library/publications/the-world-factbook/index.html