In Ecuador, the oil sector accounts for more than half of the country's export earnings and approximately two-fifths of public sector revenues. Resource nationalism and debates about the economic, strategic, and environmental implications of oil sector development are prominent issues in the politics of Ecuador and the policies of its government. Ecuador is the smallest producer in the Organisation of the Petroleum Exporting Countries (OPEC) and it produced 556 000 bbl/d of petroleum and other liquids in 2014, of which crude oil production was 555 000 bbl/d. A lack of sufficient domestic refining capacity to meet local demand has forced Ecuador to import refined products, limiting net oil revenue.
In 1992, Ecuador left OPEC owing a debt of more than US$5 billion. Ecuador rejoined the organisation following a near 15-year hiatus in 2007. Ecuador has a challenging investment environment prompted by government initiatives to increase the share of crude oil revenue for the state, which has contributed to near-stagnant oil production as output has stayed within a close range over the past 10 years.
Ecuador’s energy mix is largely dependent on oil, which represented 79% of the country’s total energy consumption in 2013. Hydroelectric power was the second-largest energy source. Natural gas and nonhydro renewable fuels are also important to Ecuador’s energy mix.
Adapted from press release by Joseph Green