Tag Archives: Ecuadorean Amazon

How Many Oil Barrels have Spilled in the Amazon

petroperu-oil-spill-amazon-loreto

It’s been a bad year for Peru’s Amazon – 2016 has seen seven oil spills there so far. And it’s only September. Most of these occurred across the Northern Peruvian Pipeline, in operation since 1977, which transports crude from the Peruvian Amazon to the Pacific Coast along 854 kilometers (530 miles) and is under the control of state-owned Petroperu. After the first two spills leaked around 3,000 barrels, in January and February 2016, the pipeline was shuttered for repairs. However, five additional oil spills have happened since then.According to Peru’s environment regulator OEFA, at least five oil spills were due to poor pipeline conditions, and illegal use of it after the closure. However, the oil company is blaming the latest two spills on vandalism by locals.,,

[M]ore than 190 oil spills have been recorded in Peru since 1997, according to Peru’s energy and mining agency. But the situation appears to have worsened since the beginning of 2016. After the two oil spills leaked 3,000 barrels – polluting nearby rivers and destroying the livelihood of locals – protests against pipeline’s poor conditions in February 2016 forced its shutdown.

When a third oil spill occurred in June 2016 – of 600 barrels – then-Minister of Environment, Manuel Pulgar Vidal, accused Petroperu of pumping crude illegally through the pipeline. The president of Petroperu was ousted, and a $3.5-million (around 3-million-euro) fine was levied.

But the disaster continued: During August and September 2016, four additional oil spills were recorded in the area. The last two occurred while thousands of indigenous people were demonstrating for withdrawal of the oil companies. According to the Peruvian government, Petroperu is responsible for at least five of the seven oil spills – the company has already been penalized more than $7 million. Petroperu continues to insist, however, that the oil spills were a result of extreme weather or vandalism by the locals.

The amount of oil spilled 2016 in the Peruvian Amazon – less than 10,000 barrels in seven spills – is a relatively small amount, compared for instance to the 650,000 barrels of oil that have fouls parts of the Amazon of Ecuador since the 1960s.

Repeated oil spills threaten Peru’s Amazon, DW.com, Oct. 2, 2016

Ecuador Oil Drilling in the Amazon: the Yasuni National Park

Yasuni National Park.  Image from wikipedia

Ecuador’s parliament on Thursday (Oct. 3, 2012) authorized drilling of the nation’s largest oil fields in part of the Amazon rainforest after the failure of President Rafael Correa’s plan to have rich nations pay to avoid its exploitation.  The socialist leader launched the initiative in 2007 to protect the Yasuni jungle area, which boasts some of the planet’s most diverse wildlife, but scrapped it after attracting only a small fraction of the $3.6 billion sought.

The government-dominated National Assembly authorized drilling in blocks 43 and 31, but attached conditions to minimize the impact on both the environment and local tribes. Though Correa says the estimated $22 billion earnings potential will be used to combat poverty in the South American nation, there have been protests from indigenous groups and green campaigners.  About 680,000 people have signed a petition calling for a referendum.  “We want them to respect our territory,” Alicia Cauilla, a representative of the Waorani people who live around the Yasuni area, said in an appeal to the assembly. “Let us live how we want.”  Correa has played down the potential impact of oil drilling in the area, saying it would affect only 0.01 percent of the entire Yasuni basin…

Oil output in OPEC’s smallest member has stagnated since 2010 when the government asked oil investors to sign less-profitable service contracts or leave the country. Since then, oil companies have not invested in exploration.  State oil company Petroamazonas will be in charge of extraction in blocks 43 and 31, which are estimated to hold 800 million barrels of crude and projected to yield 225,000 barrels per day eventually. Ecuador currently produces 540,000 bpd

Excerpt, By Alexandra Valencia, Ecuador congress approves Yasuni basin oil drilling in Amazon, Reuters, Oct. 4, 2013

 

Chevron and Amazon: the $18 billion Ecuador Liability

The D.C. Circuit Court of Appeals  on June 12, 2012  (pdf) dealt another setback to Chevron over its $18 billion Ecuador liability, reversing a lower court decision that allowed the oil giant access to documents from a prominent consulting group for the Amazon rainforest communities that sued the company.-

Dragging itself through Oily Mud: Chevron in Amazon

 

A judge in a tiny courtroom in the Ecuadorean Amazon ruled Monday that the oil giant Chevron was responsible for polluting remote tracts of Ecuadorean jungle and ordered the company to pay more than $9 billion in damages, one of the largest environmental awards ever.

The award against Chevron “is one of the largest judgments ever imposed for environmental contamination in any court,” said David M. Uhlmann, an expert in environmental law at the University of Michigan. “It falls well short of the $20 billion that BP has agreed to pay to compensate victims of the gulf oil spill but is a landmark decision nonetheless. Whether any portion of the claims will be paid by Chevron is less clear.”

Both sides said they would appeal the ruling…Pablo Fajardo, a lawyer for the plaintiffs, called the ruling a “triumph of justice,” but said it still fell short. “We’re going to appeal because we think that the damages awarded are not enough,” he said in a telephone interview. The plaintiffs were seeking as much as $113 billion, according to a report recently submitted to the court.  A Chevron spokesman, Kent Robertson, called the decision “illegitimate and unenforceable.” He said Chevron would appeal through the Ecuadorean legal system, and would not pay the damages.  “This is the product of fraud,” he said. “It had always been the plan to inflate the damages claim and coordinate with corrupt judges for a smaller judgment.”

The origins of the case go back to the 1970s, when Texaco, which was later acquired by Chevron, operated as a partner with the Ecuadorean state oil company. The villagers sued in 1993, claiming that Texaco had left an environmental mess that was causing illnesses. Chevron bought Texaco in 2001, before the case was resolved.

Chevron has been playing hardball for at least the last two years. It produced video recordings from watches and pens wired with bugging devices that suggested a bribery scheme surrounded the proceedings and involved a judge hearing the case. The judge was forced to resign, although it was later revealed that an American behind the secret recordings was a convicted drug trafficker…

Last week, Chevron filed a suit against dozens of people involved in the case, charging that they conspired to extort the company for $113 billion by making up evidence and trying to manipulate the Ecuadorean legal system. At the company’s request, an American judge issued a temporary restraining order to block any judgment for at least four weeks. A day later, international arbiters ordered Ecuador to suspend the enforcement of any judgment.

Excerpts from SIMON ROMERO and CLIFFORD KRAUSS, Ecuador Judge Orders Chevron to Pay $9 Billion, NYTimes, Feb. 14, 2011