Ecuador’s Oil Production Dinged by Social Unrest

To date, the direct economic damage to Ecuador is estimated at around $45 million considering a WTI price of $100/bbl, according to state-owned Petroecuador, the country’s main oil and gas producer.

Ecuador’s Oil Production Dinged by Social Unrest

Approximately 781 wells operated by Petroecuador and private entities have been shut in while 31 production towers have halted operations. (Source: Hart Energy, Shutterstock.com)

Ecuador’s hydrocarbon sector is reeling from the impacts of social unrest sparked by rising food and fuel prices.

A drastic decline in oil production and rent has spurred the government to declare force majeure across the entire hydrocarbon value chain to avoid further financial damage due to possible lawsuits. The unrest has significantly impacted state-owned EP Petroecuador, the country’s main oil and gas producer.

EP Petroecuador’s transport and export activities is a reoccurring headwind for President Guillermo Lasso in his push to attract foreign direct investment to the South American country’s struggling energy sector to rehabilitate refineries and engage in activities to boost oil and gas production.

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Pietro Pitts

Pietro Donatello Pitts is a senior energy reporter for Hart Energy. He covers Latin America and the Caribbean as well as regions from North America to Europe, Africa and Asia. He covers topics spanning from the upstream, midstream and downstream sectors to the energy transition and geopolitical events impacting the global energy sector.