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Why is The Economist Chortling over the Prospect of Oil Pollution in Ecuador?

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William K. Black, J.D., Ph.D.
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Consider this sentence in the same article:  "The other [alternative] would be to redouble efforts to develop Pungarayacu, a big field of heavy oil. But that would also annoy greens."  The phrase "heavy oil" refers to highly viscous oil that will not flow naturally through a pipeline and often has higher sulfur content (a pollutant that is particularly lethal).  Heavy oil spills can sink to the bottom of rivers, lakes, and aquifers and cause much greater damage than light oil spills.  Heavy oil sells at a substantial discount relative to light oil, greatly reducing its economic value to Ecuador.  Why would Ecuador producing heavy oil only "annoy greens?"  Why doesn't the prospect of the wealthy nations following policies that push Ecuador to produce heavy oil disturb The Economist?  The sneering indifference to the environment displays how far The Economist has fallen.    

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William K Black , J.D., Ph.D. is Associate Professor of Law and Economics at the University of Missouri-Kansas City. Bill Black has testified before the Senate Agricultural Committee on the regulation of financial derivatives and House (more...)
 
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