Exports from private companies sank 27.6% last year versus 2008 to 98,869 barrels per day, while private output fell 14.4% to 204,511 bpd, according to state petroleum company Petroecuador.

Could have seen that coming, in fact we talked about this very problem almost two years ago.

Correa wants foreign oil companies to give up their profit-sharing deals and sign new contracts under which they would become service providers.

This guy is clutching at straws. Service providers can help you get the remaining oil out, but they're not going to put new money into exploration and technology, which is what's needed to get production back up. Even if the government changes, you now have a legacy of unrealistic expectations which will run interference on any attempt to get things moving again, both in energy and mining. In short, Ecuador's a write-off for years to come.

It pains me to see nations like Somalia and Bangladesh go down the tubes, but at least they have an excuse. There's no excuse for what happened in Ecuador - just plain mismanagement and vainglorious political posturing from everyone involved.

ebear