The Economist – If it ain’t broke…
Date: Dec 1, 2010
The Economist analyzes Ecuador President Rafael Correa’s efforts to renegotiate oil contracts with foreign companies doing business in Ecuador. This article suggests that President Correa made an error in deciding on terms for new agreements:
The country’s oil-industry trade group says that if firms were given more incentive to invest, they could double production in just a few years. A handful of companies, including Brazil’s Petrobras, are leaving the country entirely. Mr Correa insists that the renegotiation was worth it, calling the new agreements “very beneficial to the country”. His treasurers will be hard-pressed to agree.