Popular uprisings are on the rise south of the border. The people in oil rich countries lately want the proceeds of oil exports to be spent on the countries' infrastructure and on social programs. They just can't seem to understand why a few fat cat oil execs should be getting all the profits.
Ecuador's defense minister has resigned amid a mounting crisis over protests which have crippled oil production and forced the country to ask Venezuela for a loan of crude oil.
Ecuadorean officials say Defense Minister Solon Espinoza stepped down Friday and was replaced by retired army General Oswaldo Jarrin. The reason for the resignation was not clear.
The move comes as a state of emergency remains in effect for the provinces of Sucumbios and Orellana, where protesters have massed, demanding new contract negotiations with foreign oil firms.
They also have called for increased spending on infrastructure and social programs.
The demonstrations forced the state-owned oil company, Petroecuador, to suspend production and the government to seek a temporary loan of oil from Venezuela to keep up exports.
Most of Ecuador's oil exports go to the United States.
Voice of America article
Ecuador has sent in troops to occupy its oil-rich Amazon region and declared a state of emergency, after attacks on installations by community groups cut oil production by about 65 per cent.
The armed forces said on Thursday evening they had secured the eastern provinces of Orellana and Sucumbíos, which account for three-quarters of state oil production and about half of private oil production in Ecuador, in order "to guarantee the physical security of the hydrocarbons complex and the return of the flow of petrol".
Financial Times article
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