It is an interesting fact that the average duration of the general director of Petroecuador, PEC, during half a century of existence, is nine months. In the current government, there were two incumbents and two replacements in two years. This is a reflection of weak institutions that threaten the accurate implementation of public policies.
The steady decline in crude oil production is critical. In 2020 it was 128 million barrels, while in 2022 it fell to 114.5 million, a decline camouflaged by the rise in the price of oil that allowed annual sales of $4.5 billion to $9.7 billion, more than double, with a loss of volume of 10 %. Without immediate corrective action, this downward curve will continue.
At two of the four oil fields declared ‘force majeure’, operations have already been reactivated
A sign of the decline of the sectoral model based on nationalism and statism of the 20th century. The disruptive presence of private companies in a dozen symbolic projects that would transform the industry continues to be hampered by a lack of political resolve.
An international tender to extinguish 440 highly polluting lighters in the fields of northeastern Ecuador has been declared invalid. Three companies participated, but when adjusting the bases that require a guarantee of the seriousness of the offer, only one met the requirement. Its amount is 740 million dollars, and it is financed by the investment fund of the native tribes of Texas, in order to avoid the burning of accompanying gas, which represents the equivalent of 25 thousand barrels of crude oil per day. The legal report of the PEC Prosecutor’s Office, which had only one ambiguous paragraph, hindered the adjudication.
Oil production suffered a drop in output on March 18, but is already seeing growth, Petroecuador data show
In 2022, Ecuador consumed 248,500 barrels of light derivatives per day, importing 155,900 of the total, 70%…
The process of repair and construction of the high conversion train at the Esmeraldas refinery, which is a project that envisages a 100% private investment of 2000 million dollars, remains on hold because the competent inter-institutional commission has collapsed due to the resignation of the previous manager of the PEC and has not been reformulated. Meanwhile, the nation’s refinery system is in a sorry state.
In 2022, Ecuador consumed 248,500 barrels of light derivatives per day, importing 155,900 of the total, 70%, at a cost of $7.6 billion. It is to be expected that, with annual growth of even double-digit numbers, fueled by smuggling, it will soon be at 80 or 90%. The concept of energy sovereignty cannot be denied given the risk of possible shortages of gasoline and diesel due to problems in the supply chain, transportation and storage, even more so given the limited capacity of the Esmeraldas and Santa Elena reservoirs, with 30% of their tanks out of use.
At the same time, the diversion project for two oil pipelines – SOTE and OCP – as well as the Shushufindi-Quito polyduct in the zone of regressive erosion of the Coca River is on the zero page. Despite the fact that the transportation of crude oil in November 2021 was interrupted for 16 days, due to which there was a loss of 600 million dollars, PEC has not yet announced the tender in question due to the absence of a reference study.
There are many reasons for a classified ad. PEC urgently needs a permanent manager. (OR)
Mario Twitchell is an accomplished author and journalist, known for his insightful and thought-provoking writing on a wide range of topics including general and opinion. He currently works as a writer at 247 news agency, where he has established himself as a respected voice in the industry.