RAINFOREST NEGOTIATION EXERCISE (RNE)

The document describes a stakeholder negotiation exercise regarding Conoco, Inc.'s proposal to develop Block 16 in the Ecuadorian Amazon. It details the environmental and social risks associated with oil extraction in the region, including deforestation, colonization, and threats to the Waorani people. The text outlines Conoco's proposed environmental management plan, which includes diagonal drilling and waste reinjection, and provides a financial analysis of the project's profitability against its environmental costs. It further contextualizes the conflict within Ecuador's broader economic dependence on oil and the biological importance of Yasuni National Park.

• Conoco, Inc. proposes to develop Block 16 in the Ecuadorian Amazon, which contains over 200 million barrels of oil reserves, representing 20% of Ecuador's total reserves.
• The proposed development of Block 16 requires an initial investment of $600 million, with $60 million (10%) specifically allocated for environmental protection initiatives.
• Oil development in the region has historically caused severe environmental damage, including the spill of over 10 million gallons of oil from the Trans-Ecuadorean pipeline and the dumping of 4.3 million gallons of toxics daily into unlined waste pits.
• Road construction for oil extraction is identified as a primary driver of colonization; World Bank estimates suggest that each mile of new road leads to the colonization of 1,600 to 10,000 acres of land.
• The Waorani people, particularly those in Yasuni National Park, face threats of 'deculturation and ethnocide' due to land loss, foreign diseases, and the disruption of their hunting and farming livelihoods.
• Conoco's proposed environmental management plan includes diagonal drilling to reduce deforestation by 90% and the reinjection of toxic formation water to protect groundwater.
• Ecuador's economy is heavily dependent on oil, with the resource providing 50% of the country's foreign exchange and 60% of its annual government budget.
• A financial base case analysis for Block 16, assuming a long-term oil price of $15 per barrel and a 10% real interest rate, produces an internal rate of return (IRR) of 18.5%.

APA

Cummings, C. A., Marcus, B. L., Freeman, R. E., & Lunday, J. (1994). RAINFOREST NEGOTIATION EXERCISE (RNE). World Resources Institute. https://pdf.wri.org/bell/case_1-56973-169-1_full_version_english.pdf

Chicago

Cummings, Chirstopher A., Barbara L. Marcus, R. Edward Freeman, and Jason Lunday. RAINFOREST NEGOTIATION EXERCISE (RNE). World Resources Institute, 1994. https://pdf.wri.org/bell/case_1-56973-169-1_full_version_english.pdf.

Wikipedia

{{cite report |last1=Cummings |first1=Chirstopher A. |last2=Marcus |first2=Barbara L. |last3=Freeman |first3=R. Edward |last4=Lunday |first4=Jason |title=RAINFOREST NEGOTIATION EXERCISE (RNE) |publisher=World Resources Institute |date=1994 |url=https://pdf.wri.org/bell/case_1-56973-169-1_full_version_english.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{cummings1994rainforest, author = {Cummings, Chirstopher A. and Marcus, Barbara L. and Freeman, R. Edward and Lunday, Jason}, title = {{RAINFOREST NEGOTIATION EXERCISE (RNE)}}, institution = {World Resources Institute}, year = {1994}, url = {https://pdf.wri.org/bell/case_1-56973-169-1_full_version_english.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }