Protests in Ecuador can stop oil extraction in 48 hours

Ecuador could stop producing oil in the next 48 hours if indigenous protests continue, which have included the seizure of more than a thousand wells, the Ministry of Energy reported on Sunday, when 14 days of anti-government demonstrations are completed.

“If this situation continues, the country’s oil production would be suspended in 48 hours, since due to acts of vandalism, taking over wells and closing roads, it has not been possible to transport the supplies and diesel necessary to maintain the operation,” the portfolio said in a statement.

Look: Losses due to protests in Ecuador reach 500 million dollars

According to the ministry, “oil production is at critical levels” due to the effects of the protests promoted by the powerful Confederation of Indigenous Nationalities (Conaie), in which more than 14,000 outraged demand measures to cushion the high cost of living.

“Today the figures show a decrease of more than 50%” of production, adds the statement, which points out that until June 12, just before the protests broke out, “On average, 520,000 barrels were produced daily.”

Among the range of claims, the protesters ask to reduce the price of fuels that made freight more expensive in agricultural regions. The peasants claim to harvest at a loss.

The prolonged indigenous rebellion has affected the production of the state-owned Petroecuador and other companies, such as the Chinese PetroOriental.

The ministry noted that “Each day that passes, the hydrocarbon sector registers greater losses. In 14 days of mobilization, the Ecuadorian State stopped receiving around USD 120 million”.

Oil is the main export item of Ecuador. According to the Central Bank, between January and April the country extracted 481,000 barrels per day, of which it exported 65%.

Petroecuador is in charge of 78% of the production.

The Energy portfolio indicated that in the last two weeks more than 1.3 million barrels were stopped from being exploited due to the suspension of activities in 1,176 wells in the Amazon jungle.

The manager of Petroecuador, Ítalo Cedeño, said on Tuesday that because of the protests, pumping through secondary pipelines to the Amazonian town of Lago Agrio (east), from where the crude is transported to ports in the Pacific by the two main oil pipelines in the country.

Ecuador exports oil, but imports fuels that it sells with subsidies that have demanded around 2,806 million dollars annually between 2014 and 2022, according to the Ministry of Economy.

Source: Elcomercio

Ronald Payne

I, Ronald Payne, am a journalist and author who dedicated his life to telling the stories that need to be said. I have over 7 years of experience as a reporter and editor, covering everything from politics to business to crime.