You know this because they've told you enough times. I mean, why would they ever tell you untruths?
Case in point is the 'Block 15' oil field that the Gov't of Ecuador took back from Ocidental Petroleum back in May 2006 (pre-Muffin, we note in passing). At the time of the seizure (due to clear non-compliance by Oxy) the field was producing 101,000 barrels a day. Within a few months of government control production was down to 60,000bbl/d and the world was awash with the "I told you so" choruses from stupid, prejudiced people who always seem to know better.
But what was really happening was more subtle than the bipolar judgemental world let you believe. In its time at Block 15, Oxy had extracted without putting in the necessary investment to maintain production levels over the long term. Also, when the field was dropped into the lap of state run PetroEcaudor (via newly set up subsidiary PetroAmazonas) the state had little buying power and resources to be able to suddenly take on a big field and make it work.
But maybe you've noticed how recently the finger-waggers and Correa/Ecuador critics have gone all quiet about Block 15, PetroAmazonas and PetroEcuador in general? Maybe that's because the field is now producing at over 100,000bbl/d again, and now even beats out Oxy production (e.g. 103,741bbl produced on Sunday Nov. 9th, and 102,051bbl logged today).
In the words of the CEO of PetroAmazonas:
"In December 2006, on taking charge of Block 15 and concerning the approval of the 2007 company budget, I informed the Board of PetroEcuador that it was necessary to reorientate investments at Block 15 so that production could come from the incorporation of new reserves to compensate the reduction to 60,000bbl/d at the Eden-Yuturi field which was producing up to 75,000bbl/d in the Occidental period."
Yep, those backwater know-nothings in the Ecuadorian Gubmint that wouldn't last five minutes without the foreign Johnnies telling them what to do and charging them a pretty penny for the pleasure have invested, replenished reserves, upped production just as they said they would and have shown Occidental and all the other detractors a thing or two about oil production. Bottom line: Petroamazonas has made good on its promise to return to 100,000bbl/d production (that's a chunky 20% or so of Ecuador's total production, by the way).
We are therefore left with a roaring silence from media and "expert commentators". I mean, there's no point in disseminating good news about the Ecuador oil sector, is there? No point in showing the world the country does not need foreign direct investment. And actually praise a nationalized company? Perish the thought! It's best to keep success stories quiet. Don't want to rock the boat.
Case in point is the 'Block 15' oil field that the Gov't of Ecuador took back from Ocidental Petroleum back in May 2006 (pre-Muffin, we note in passing). At the time of the seizure (due to clear non-compliance by Oxy) the field was producing 101,000 barrels a day. Within a few months of government control production was down to 60,000bbl/d and the world was awash with the "I told you so" choruses from stupid, prejudiced people who always seem to know better.
But what was really happening was more subtle than the bipolar judgemental world let you believe. In its time at Block 15, Oxy had extracted without putting in the necessary investment to maintain production levels over the long term. Also, when the field was dropped into the lap of state run PetroEcaudor (via newly set up subsidiary PetroAmazonas) the state had little buying power and resources to be able to suddenly take on a big field and make it work.
But maybe you've noticed how recently the finger-waggers and Correa/Ecuador critics have gone all quiet about Block 15, PetroAmazonas and PetroEcuador in general? Maybe that's because the field is now producing at over 100,000bbl/d again, and now even beats out Oxy production (e.g. 103,741bbl produced on Sunday Nov. 9th, and 102,051bbl logged today).
In the words of the CEO of PetroAmazonas:
"In December 2006, on taking charge of Block 15 and concerning the approval of the 2007 company budget, I informed the Board of PetroEcuador that it was necessary to reorientate investments at Block 15 so that production could come from the incorporation of new reserves to compensate the reduction to 60,000bbl/d at the Eden-Yuturi field which was producing up to 75,000bbl/d in the Occidental period."
Yep, those backwater know-nothings in the Ecuadorian Gubmint that wouldn't last five minutes without the foreign Johnnies telling them what to do and charging them a pretty penny for the pleasure have invested, replenished reserves, upped production just as they said they would and have shown Occidental and all the other detractors a thing or two about oil production. Bottom line: Petroamazonas has made good on its promise to return to 100,000bbl/d production (that's a chunky 20% or so of Ecuador's total production, by the way).
We are therefore left with a roaring silence from media and "expert commentators". I mean, there's no point in disseminating good news about the Ecuador oil sector, is there? No point in showing the world the country does not need foreign direct investment. And actually praise a nationalized company? Perish the thought! It's best to keep success stories quiet. Don't want to rock the boat.