QUITO – Ecuador’s Energy Ministry warned yesterday that oil production had reached a “critical” level and could be halted entirely within 48 hours if protests and roadblocks continue in the crisis-wracked South American country.
Nearly two weeks of indigenous-led protests against rising fuel prices and living costs have crippled transportation in Ecuador, with roadblocks set up in 19 of the oil-rich country’s 24 provinces.
“Oil production is at a critical level,” the ministry said in a statement.
“If this situation continues, the country’s oil production will be suspended in less than 48 hours as vandalism, the seizure of oil wells, and road closures have prevented the transport of equipment and diesel needed to keep operations going.”
“Today, the figures show a decrease of more than 50%” in production, which was at roughly 520,000 barrels per day before the protests, it said.
Ecuador’s economy is highly dependent on oil revenues, with 65% of output exported in the first four months of 2022.
An estimated 14,000 protesters are taking part in the nationwide demonstrations, most of them in Quito.
Shortages are already being reported in the capital, where prices have soared.
Violence between police and demonstrators has reportedly left five dead, while about 500 people have been injured, according to various sources.
The National Assembly will eventually vote on whether to oust President Guillermo Lasso over what opposition lawmakers say is his role in the protests, with a no-confidence hearing resuming for a second day late yesterday.
Earlier in the day, Production Minister Julio Jose Prado said that public-private economic losses from the protests totaled US$500 million (RM2.2 billion).
“Each additional day of downtime represents US$40 million to US$50 million lost,” he said yesterday.
Overall losses since the protests began include 8.5 million litres of milk worth US$13 million as well as US$90 million in agricultural goods and livestock.
The tourism industry has seen cancellations rise to 80%, with losses amounting to at least US$50 million.
Additionally, “in the flower farm sector, 12 days of shutdown resulted in US$30 million in losses and damage to trucks and farms”, Prado said. – AFP, June 27, 2022
