2024-07-08 23:34:49
During the first half of 2024, Ecuador has experienced a significant decrease in its country risk, according to recent data from the Central Bank of Ecuador. From January to June, the index has shown a downward trend, going from 2,055 points at the beginning of the year to 1,376 points in mid-June.
Nelson Baldeón, a renowned geopolitical consultant specializing in energy, has highlighted that one of the determining factors of this situation is the drastic fall in the country’s oil production, together with the persistent power outages that have affected the national energy infrastructure.
“The halting of approximately USD 11 billion in oil investments is an alarming sign of the challenges facing Ecuador,” Baldeón warned.
The consultant explained that the suspension of crude oil pumping from the OCP pipeline since June 17, 2024 due to erosion problems in the Coca River has exacerbated the situation. This incident has not only negatively impacted daily crude oil production by 37,000 barrels, but has also contributed to power outages by affecting the operation of the Coca Codo Sinclair hydroelectric plant.
In response to these challenges, the Minister of Energy, Roberto Luque, acknowledged that the complete resolution of this crisis could take up to 20 additional days, although he stressed that this estimate is tentative and subject to change.
“Our priority is to restore the OCP’s operations in a safe and efficient manner to minimize the economic and energy losses that the country faces,” Luque said.