The Legacy of Texaco in the Ecuadorian Amazon

Geraldine Barnuevo

Professor Frederick Hoffman, J.D.

Management 550

22 September 2014

The Legacy of Texaco in the Ecuadorian Amazon

        United States multinational companies should abide by rules of their home country on environmental matters in the absence of equally protective laws when they are operating abroad.

        Multinational oil and gas companies attracted by developing countries nascent regulations in matters of environmental and labor law, invested in countries like Ecuador during the 60s and 70s.  As a result of more than three decades of poor operational practices, a pristine zone in the Amazon, known as one of the most biodiverse hotspots in the world, faces natural resource damages twice the magnitude of the Exxon Valdez or the BP Deep Horizon spills.

        As an Ecuadorian and an environmental engineer, I hold an interest in the outcome of this case.    This publicized case is an example to multinationals about how acts against human rights and the environment can cause reputation damages and financial losses.

        The main points of my paper will cover: evaluation of the litigation history; comparison of the legal system in Ecuador while Texaco operated in the Amazon and the regulatory framework in the United States at that time; evaluation of the technical report commissioned by the Ecuadorian Government to LBG in connection with “a private international arbitration where Chevron is seeking – thus far without success – to shift the clean-up liability to Ecuador’s government” (Hinton Communications, CSR Press Release, June 2014).