Mes: agosto 2023

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Ecuador’s Future Post-Yasuní Referendum

On August 20, the outcome of the popular referendum in Ecuador echoed nationwide: a resounding 60% voted in favor of keeping the oil underground in the iconic Yasuní. This region, considered one of the most biodiverse in the world, has been the subject of intense debates over the need to protect it against aspirations for oil exploitation. However, the reality in the province of Orellana, where the ITT block is located, was starkly different: 60% voted «No», showcasing the economic and employment dependence of the local population on the «black gold.»

This scenario mirrors a duality the country faces: the moral and environmental duty to protect an unparalleled natural treasure versus the economic realities of communities that rely on oil. There’s also the risk that, with the departure of oil activities, poaching, illegal logging, and other activities currently overseen by the company might increase.

According to Petroecuador’s general manager, Ramón Correa, the «Yes» victory means that the Ecuadorian treasury will lose around $16,000 million in revenues over the next two decades. Of this figure, $13,800 million would be attributed to the non-extraction of oil from the ITT block. Additionally, costs for field abandonment, social compensations, and infrastructure dismantling are foreseen. The ITT block 43, for instance, has already generated revenues of $4,000 million since 2014 and represents employment for thousands.

Nevertheless, figures presented by former Minister of Economy, Wilma Salgado, paint a different picture. She asserts that if the State focuses on collecting outstanding debts and eliminates tax breaks for the wealthiest, it could surpass the revenues that would be generated by oil exploitation.

However, the dilemma doesn’t end there. Ecuador’s biodiversity presents an unprecedented opportunity to boost the bio-economy. This is seen as an alternative where sustainable exploitation of biological resources can yield high-value products and services.

On the other hand, the possibility of the international community compensating Ecuador for keeping the ITT oil unexploited is still on the table. In the past, international interest in financially supporting Ecuador in this cause was hampered by a lack of transparency in managing those funds.

Tourism, although experiencing growth after the pandemic, is not yet seen as a solid alternative to oil. Without a clear strategy and coordinated effort, the country has not managed to position itself as a top-tier tourist destination, unlike neighbors like Costa Rica. Insecurity and political instability also play against tourism in our nation.

In this backdrop, whoever wins the upcoming presidential elections will find themselves at a crossroads: rethinking and restructuring the national development model. The challenge lies in balancing the urgent economic need with the protection of invaluable environmental heritage. The recent verdict of the popular referendum has set a course; now, the new government must find the tools and strategies to navigate it successfully.

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Oil Extraction in Yasuní National Park: Reasons to Vote NO in the Popular Consultation on the ITT.

Yasuní National Park, nestled in the Amazon rainforest of eastern Ecuador, is one of the most biodiverse places on Earth. The park is home to a wide array of species, including some that are endemic, meaning they’re found nowhere else in the world. Yasuní has been recognized as a UNESCO Biosphere Reserve, highlighting its global significance for biodiversity conservation.

The park also has immense cultural importance, being home to two uncontacted indigenous tribes – the Tagaeri and the Taromenane. These communities have chosen voluntary isolation, living in harmony with the ecosystem that sustains them, and their right to remain undisturbed is enshrined in Ecuadorian law.

However, beneath Yasuní’s rich biosphere lies an estimated 846 million barrels of crude oil in the Ishpingo-Tambococha-Tiputini (ITT) block, also known as Block 43. This oil accounts for about 20% of Ecuador’s reserves, providing a lucrative resource for the country’s economy.

The proposed popular consultation on the fate of the ITT‘s crude, known as Block 43, has sparked lively debate across the country. At first glance, the question seems straightforward: Should we leave the oil underground indefinitely or not? However, things are more complex than they appear and there are significant reasons to vote NO in this consultation. Here are five key points to consider when making an informed decision.

Firstly, it’s important to understand that the consultation, in its current state, appears not to be pertinent. Since 2016, Ecuador has already been extracting oil from the ITT. The necessary access roads, extraction platforms, and surface installations have been built for this operation. Today, more than 55,000 barrels are extracted daily from this place. Raising the popular consultation now, after all this development and exploitation, seems a late measure and disconnected from the reality on the ground.

Secondly, it’s crucial to remember that the citizenry was already consulted on a similar matter in 2018. On that occasion, under the administration of Lenín Moreno, nearly 70% of Ecuadorians voted in favor of increasing the intangible protection zone and reducing the exploitation area from 1,000 to 300 hectares in Yasuní. Thus, the popular will has already manifested in favor of balanced preservation and limited exploitation, is it really necessary to revisit this issue?

Thirdly, it’s vital to have an accurate view of the environmental impact of oil extraction. The Yasuní has nearly one million hectares, while the extraction of the ITT currently occupies only 80 hectares. Obviously, all extraction has its impact, but it’s important to understand that, in terms of proportion, the exploitation of the ITT does not threaten to destroy the entirety of the Yasuní.

Furthermore, fourthly, leaving the ITT’s oil underground will not significantly mitigate climate change. Despite advances in renewable energy and the global energy transition, the world continues to demand oil. If Ecuador stops supplying it, simply another country will, perhaps with less rigorous environmental standards.

Finally, one cannot forget the delicate economic situation of the country. Although figures vary, the exploitation of the ITT represents a considerable sum that the country needs to meet its social needs. Even if the revenues were less than the 1.2 billion annually that some experts mention, any income is crucial for investment in education, health, and the overall welfare of Ecuadorians.

In conclusion, while environmental protection is a matter of utmost importance, in the case of the popular consultation on the ITT, the current circumstances and the country’s needs suggest that voting NO is an option that deserves serious consideration. It’s crucial that Ecuadorians are well-informed and understand the nuances of this matter before making a decision.