Chevron Ecuador Muddled By Petroecuador, Canadian, Foreign Oil Companies

Lost in the entire Chevron Ecuador PR and legal battles is a little known report that between 2002 and 2010, Petroecuador - the state-owned oil company that took over the oil fields owned by Texaco, just after that company was purchased by Chevron - was responsible for an estimated 1,415 "environmental accidents" according to the Ecuadorian newspaper El Universo.

The oil company operated in five oil fields - Shushufindi, Sacha, Auca, Lago Agrio, and Libertador - where the damage happened. There is no report that Petroecuador has completed environmental clean-up in those areas.

Locally, Petroecuador is seen as the real problem, even as the government, which effectively runs the media, has formed a public view against Chevron as well.

But lost in all of this, from fraudulently prepared reports, to intimidation of Ecuadorian judges, is the fact that the story of oil exploration in Ecuador is one of the actions of many companies, as Chevron has not been in operation since 1992, and Occidental Petroleum was the last American company to work in the nation until they were kicked out in 2007.

For example, little discussed is the role of Canadian oil companies in Ecuador. Firms like Ivanhoe Energy and Encana, which started operations in 1999.

Encana, like Chevron, has been the focus of a movie, this one called Between Midnight and the Rooster’s Crow. But what makes this interesting is that with Encana, Ivanhoe, Repsol-YPF from Spain, Occidental Petroleum, Teikoku from Japan, the Brazilian national oil company Petrobras, the French oil company Perenco, and now Andes Petroleum, a consortium of Chinese oil producers, it's impossible to argue that the Ecuador oil story is one between just Chevron and Petroecuador.

It also makes it all but impossible to claim that oil wells in Lago Agrio were only used by Chevron - the facts just don't support that claim.

Why?

Because Lago Agrio is where Andes Petroleum Co currently operates, and where Encana worked before the Chinese entered Ecuador, buying the rights and production facilities for $1.4 billion, where Chevron, again, left in 1992 and engaged in cleanup work through 1995. Moreover, several firms, including Petroecuador, have produced oil in Lago Agrio over that time through to today.

This is 2011.

What's lost on American activists is that oil funds an estimated 50 percent of Ecuador's national budget. That, coupled with the fact that Ecuador produces more oil than it needs for its economy, and you have a situation where many foreign companies, not just a few, want to and have produced oil in Ecuador, and a government that's still all too interested in courting them.

And that, as Ecuador becomes a socialist dictatorship, and the perfect environment for an uprising, very much like the one that happened in September, involving Ecuadorian President Rafael Correa and the Ecuador police, who kidnapped him.

Their concerns: maintaining their benefits admit budget cuts. Ecuador's fiscal situation's not going to make life nice there for a while.

Stay tuned.