Crude Lies
New Investigation Offers a Rare Account of Colombian Oil Industry’s Impacts on Biodiversity, Climate, and People
In a groundbreaking investigation, the Environmental Investigation Agency (EIA US), with the support of Earthworks, has uncovered what appear to be systematic and long-term environmental and human rights offenses committed by the majority-state-owned oil company, Ecopetrol, Colombia’s largest company. The report Crude Lies, based on a trove of internal documents released by whistleblower Andrés Olarte Peña, shows alleged offenses including illegal methane emissions, large scale water pollution, and widespread surveillance and coercion of community members.
Over a two year investigation, EIA expanded on the whistleblower evidence by carrying out independent field research and a series of interviews with frontline land defenders which sheds light on an apparent web of deceit and cover-ups employed by Ecopetrol to conceal potentially illegal activities. EIA’s findings show how Ecopetrol’s operations may have undermined Colombian leadership on climate and biodiversity. Ecopetrol is a publicly listed company (NYSE:EC), and the Colombian State holds 88.49% of the company’s shares.
The whistleblower-released documents, much of which stem from files that were only available at the executive level, have been collated in a publicly available database titled the Iguana Papers. Olarte had access to these files between 2017 and 2019 when he was employed by Ecopetrol. Following his departure from the company, Olarte and his family received death threats. Today, Olarte is living in exile outside of Colombia and has every reason to believe that returning home is a threat to his life. Colombia is the deadliest country in the world for environmental and land defenders.
EIA’s findings indicate potentially illegal venting and flaring activities by Ecopetrol in violation of a key Ministry of Mines and Energy regulation passed in 2022. This undermined a crucial policy that made Colombia one of the first nations in the world to adopt a specific rule to reduce fugitive methane emissions. In 2023, EIA and Earthworks found dozens of instances of potentially illegal venting and flaring, including emitting sites previously reported publicly by the Colombian civil society and Earthworks.
Independent experts from the University of Cartagena found significant indicators of Polycyclic Aromatic Hydrocarbons (PAHs) and heavy metals (HMs) at high levels throughout wetlands surrounding oil operations. As a persistent pollutant, PAHs bioaccumulate over time and do not disintegrate naturally. HM toxicity poses serious risks to plants, animals, and humans.
The Iguana Papers show that historically, Ecopetrol may have not reported to shareholders, the public, and the U.S. Securities and Exchange Commission (SEC) the known impact of its activities, neglecting to report to the SEC up to 90% of environmental incidents the company was aware of. The internal files from the Iguana Papers also indicate that the company was aware of over 300,000 environmental non-compliance records, including seemingly violations of Colombian water regulations.
Alexander von Bismarck, Executive Director at EIA US explains: “The secrecy and impunity of the oil sector we documented in Colombia is chilling. Local communities and critical wetlands have become standard collateral damage to the industry’s apparently illegal methods. Our investigation shows a biodiversity and human rights crisis that has previously been hidden from the public’s eyes.”
Human rights concerns are paramount across this investigation, from the constitutional protection of whistleblowers, to the reported intimidations, death threats, and attacks on citizens. The report documents multiple instances of threats and violence that victims believe are in response to their public statements against Ecopetrol.
President Petro asserted a vision for change for his country, including the phasing out of fossil fuels. EIA calls on the Colombian government to investigate Ecopetrol executives who may have been involved in alleged environmental violations and implement comprehensive reforms of the oil sector in order to guarantee transparency and accountability. EIA urges the U.S. government to investigate Ecopetrol’s seeming violations of securities law and recommends minority shareholders, including Blackrock Inc., Vanguard Group Inc., and JP Morgan Chase & Company, to immediately divest from Ecopetrol and to instead support a just energy transition in Colombia.
EIA has reached out to Ecopetrol, the company has denied – in its 16-page answer – any wrongdoing (full company’s response available here). EIA has also contacted the minority shareholders who have not provided specific responses.