• 4 minute Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 8 minutes Could oil demand collapse rapidly? Yup, sure could.
  • 15 minutes Oil and Trade War
  • 2 hours Could oil demand collapse rapidly? Yup, sure could.
  • 10 hours Migrants: Italy Wants EU Border Agency In Africa, Not At Sea
  • 7 hours Are EVs Safer Than Combustion Engine Vehicles?
  • 3 hours What If Canada Had Wind and Not Oilsands?
  • 6 hours WE Solutions plans to print cars
  • 5 hours Russia, Saudi Push For Big Hike In Oil Output Despite Iran Opposition
  • 6 hours Oil prices going down
  • 11 hours Nopec Sherman act legislation
  • 10 hours Sell out now or hold on?
  • 13 hours The Irrelevance Of BTU Rating - Big Oil's Gimmick To Hoodwink The Public
  • 15 hours China & India in talks to form anti-OPEC
  • 17 hours Sabotage at Tesla
  • 13 hours After Three Decade Macedonia End Dispute With Greece, new name: the Republic of Northern Macedonia
  • 12 hours Trump Hits China With Tariffs On $50 Billion Of Goods
  • 5 hours Oil and Trade War
  • 5 hours Australia mulls LNG import
Alt Text

Oil Majors Undeterred By Brazilian Turmoil

Brazil’s latest offshore auction shows…

Alt Text

U.S. Overtakes Saudi Arabia In Recoverable Oil Reserves

The United States has overtaken…

Editorial Dept

Editorial Dept

More Info

Trending Discussions

ECUADOR: Correa and the Future of Oil

Bottom line: Foreign investment, though crucial for improving oil production levels in Ecuador, will remain far below potential for political reasons.

Analysis: On 17 February 2013, President Rafael Correa (Alianza País) was reelected in the first round of voting with 56.93% of the vote. His party is poised to win a majority in the legislature, providing Correa with plenty of political capital. At the polls, the public demonstrated support for his socialist programs, infrastructure projects, and continued economic growth, which are all funded by oil money. Correa outlined plans to diversify the economy by stimulating the mining sector. Though popular at home (Correa will likely be in office for a full decade 2007-2017), business freedom has decreased during his administration. Further complicating Ecuador’s situation is its limited access to international finance. In 2008, Ecuador defaulted on US$3.2 billion in debt. Combined with renegotiated oil contracts that reduced profits, many investors turned their attention to Colombia and Peru.

Diversifying Ecuador’s economy would be a wise move, but the mining sector is not a silver bullet. To attain strong growth Correa needs to court international investment in both the oil and mining sectors. Oil brings in a dependable cash flow and prices remain near historic highs. If Ecuador can return to its previous, higher levels of oil production it would be an easy guaranteed growth opportunity.

At…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News