Maxus and the Huaoranis

Abstract

This case focuses on the conflict between industrial growth and environmental protection. Although Conoco contracted with Ecuador's state-run oil corporation to drill for oil in a section of the Ecuadorian rain forest estimated to have oil reserves in excess of 200 million barrels, the company confronted intense opposition from environmental-protection groups that aimed to uphold the area's designation by UNESCO as a world ecological reserve and from the Huaoranis, who were indigenous to the area. The case explores the political, social, economic, cultural, legal, and environmental pressures that influenced Conoco's decision-making process.