Ecuador takes steps to nationalize oil industry - 08-23-06

The Supreme Court of Equador has rejected an appeal filed against a law forcing foreign oil companies to hand the Country and its Citizens a part of the profits that ais generated due to the currently high oil prices.

Ecuador realizes the potential benefits as it aligns with fellow nations Venezuela and Bolivia in introducing tighter legislation to direct the spending of revenues from natural resources.

South America's fifth largest oil producer, in April agreed to a resolution to force companies to hand over 50% of their oil production revenue above and beyond a certain agreed upon price.