Ecuador: short analysis of oil sector

pfcenergy.com reported that Ecuador produced 505,000 bbl/d in 2012, almost all of which was crude oil. Ecuador’s oil production increased year-over-year from 2011, but remains below a 2006 peak of 536,000 bbl/d. The steady increase in state oil production and the decline in private sector production suggest that some of the increases in state oil production were because state absorption of assets owned and operated by private companies, according to PFC Energy.

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Ecuador’s most productive oil blocks are located in the northeastern part of the country. According to PFC Energy, Shushufindi and Auca (two of the most prolific fields) together produced an average of 31,000 bbl/d in 2010. Crude oil production increased sizably in 2003 with the opening of the Oelducto de Crudos Pesados (OCP) pipeline, which removed a chokepoint on heavy crude oil transportation in the country. However, production has leveled off in recent years as the result of natural decline, the lack of new project development….. Read Article