- Ecuador’s Oil Industry Catastrophe… To Spread Around The World
by Steve St Angelo, SRSrocco REPORT, via http://www.24hgold.com/
There’s an ongoing catastrophe taking place in Ecuador. Not only has a significant part of the Amazon been polluted by toxic waste oil left behind from the wonderful folks at Texaco when the company started drilling for oil in Ecuador back in the 1970’s, but the low oil price has totally gutted the oil industry.
This is a big problem for Ecuador because 50% of its exports and 30% of its government revenues come from oil (source). According to the article, Ecuador Reveals Pain Inside OPEC: It’s Pumping Oil At A Loss:
President Rafael Correa said on Tuesday that the South American nation is receiving as little as $30 a barrel for its crude, while production costs average about $39. The warning comes after several other members of the Organization of Petroleum Exporting Countries, including Algeria and Libya, said the group should consider holding an emergency meeting to respond to the drop in oil prices.
Ecuador was receiving as little as $30 a barrel back in August 2015 when that article was written. However, today its likely getting a price closer to $20 for a barrel of oil. If Ecuador was in serious trouble last year due to low oil prices, the situation today is nothing short of a catastrophe for it’s oil industry and economy.
Even though Ecuador isn’t a large producer of oil, it produced a little more than 556,000 barrels a day (bd) in 2014, while total consumption was 259,000 bd. Thus, it exported nearly 300,000 bd in 2014. Here is a chart of Ecuador’s net oil exports since the 1970’s: