Ecuador Made A Deal To Sell A Third Of Its Amazon Rainforest To Chinese Oil Companies

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The Amazon Rainforest is a diverse, lush region in South America covering an area of 2,300,000 square miles. Home to an array of exotic plant and animal life, many of the millions of species have yet to be discovered. While the dense variety of trees are targeted by loggers, companies exploit another natural resource: oil.

In Ecuador, indigenous tribes have been fighting to have their voices heard over the government’s international oil deals. For example, an agreement with China’s Andes Petroleum set the stage for exploratory drilling in some of the Amazon rainforest’s most biologically rich areas. Even though the government’s efforts to profit off of Ecuador’s natural resources continues, advocates for the rainforest continue to push back. (1)

Exploiting The Amazon Rainforest For Oil

In 1967, US oil company Texaco discovered rich oil deposits in the Amazon rainforest. Since the 1970s, various companies in the oil industry have expanded their operations throughout the Amazon. Consequently, over 5,900 miles of roads cut into Ecuador’s rainforest. Carving these byways into the earth serves to connect over 3,430 oil wells throughout the area. With nearly 70% of the Ecuadorian Amazon divided into oil blocks, the industry continues to push its way deeper in the heart of the rainforest. (2)

In 2016, Ecuador’s government made a deal with Chinese oil companies. As a result of this $80 million deal, China’s Andes Petroleum could explore 500,000 acres of Amazonian land. This acreage, contained in two oil blocks, borders Yasuní National Park. The 3,800-square-mile area of Ecuador’s Amazon is also home to two indigenous, nomadic tribes.

Oil is Ecuador’s top export, producing over 540,000 barrels of crude oil per day. Because of this, the country is dependent on oil to keep the economy going. The deal with China solidified the relationship between both countries. Zhao Xinjun, president of Andes Petroleum Ecuador, excitedly announced the deal. Speaking to New China News Agency, he promised his company would have “full respect for the country’s environmental regulations.” Unfortunately, these assurances don’t mean much for indigenous Amazonian tribes. (3)

A Threat To Traditional Amazon Life

Andes Petroleum isn’t the only company invested in the Amazon. The Yasuní National Park is a prime example of big oil battles. Ecuador’s Petroamazonas, Spain’s Repsol, Italy’s Agip, and China’s Sinopec all drill in and around this park. Not only does this affect plants and animals, but the native inhabitants inevitably suffer.

Two tribes that occupy Yasuní National Park are the Tagaeri and the Taromenane. By resisting modern life to keep their cultures intact, they’ve clung to their traditional ways. These people have adapted to coexist with the many plants, insects, animals, and fish that occupy their rainforest. Because drilling for oil causes contamination and deforestation, threats exist to the local way of life. (4)

Indigenous Amazonian Tribes Fighting Back

As various tribes struggle against encroaching oil companies, others are winning their fights. For example, in the eastern Amazon province of Pastaza, the Waorani tribe won a historic court battle. The 2019 ruling upheld the tribe’s rights and prevents the government from selling the land to oil companies.

This victory was no small matter. Because of the ruling, 500,000 acres of indigenous Waorani land are protected from drilling. “This victory is for my ancestors,” Waorani Pastaza Organization president Nemonte Nenquimo said. “It’s for our forest and future generations. And it’s for the whole world.” Because of this precedent, other tribes might have more success in opposing oil companies. (5)

Fortunately, this is already proving true. As a result of pushback, China’s Andes Petroleum was forced to stop the advancement of their drilling project in 2019. The Sapara and Kichwa, tribes located where Andes Petroleum planned to test, would not go down without a fight. They protested and blocked the oil company at every turn, even preventing planes from landing at remote rainforest airstrips. Additionally, rights groups and activists put additional legal pressure on Ecuador. Because of their efforts, Andes Petroleum was ultimately forced to end their exploration. (6)

International Awareness Needed

The Amazon rainforest is extremely important to the earth’s inhabitants as well as the climate. While much scientific research proves this fact, the struggle lies in bringing all countries together on the same page. Kevin Koenig, the Climate and Energy Director at the Amazon Watch organization, notes that the ruling sends a message to the world.

“Expansion of oil production and new exploration in remote rainforests is not compatible with the Paris Agreement and limiting global temperature rise to 1.5º C,” Koenig commented in response to the Waorani court ruling. “Drilling for unburnable hydrocarbons beneath standing forests that play an essential role in mitigating climate change is a recipe for disaster.” (6)

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