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TRANSCRIPT
Ecuador: Economy and Energy Overview
By Ruth Fernandez
International Management
Agenda
• Introduction
• Brief History
• Economy
• Petroleum
• Energy
• Environmental Considerations
2
Introduction
3 Source: CIA The World Factbook
República del Ecuador (Republic of Ecuador)
Capital City: Quito
Largest City: Guayaquil
Official Language: Spanish (some indigenous languages such as Quichua and Shuar are also spoken)
Population: ~16 Million (2015 estimate)
Ethnic Groups: 71.9% Mestizo, 7.4% Montubio, 7.2% Afroecuadorian, 7% Amerindian, 6.1% White, 0.4% others
Religion: Roman Catholic 74%, Evangelical 10.4%, Jehovah's Witness 1.2%, other 6.4%, atheist 7.9%, agnostic 0.1%
Gobernment: Unitary presidential constitutional republic
President: Rafael Correa
Legislature: National Assembly
Currency: US dollar
4 Source: CIA The World Factbook
Brief History
Pre – Incan Civilizations such as Valdivia, Machalilla, Cañari and Quitus Cultures (Before 1400)
Inca Ruling for short time in the late 1400
Spanish Conquest (dead of last Inca leader Atahualpa in 1533)
Colonial Era – Belonging to Viceroyalty of Peru
and Viveroyalty of Granada
(300 years)
5 Source: CIA The World Factbook
Brief History
Independence from Spain (1822)
Part of “La Gran Colombia” until 1830
(Venezuela, Colombia and Ecuador)
Separation from “La Gran Colombia” and struggle to define borders until 1999
Military government from 1972 to 1979
Democracy until today
6 Source: CIA The World Factbook
Economy
Ecuador is substantially dependent on its petroleum resources, which have accounted for more than half of the country's export earnings and approximately 25% of public sector revenues in recent years.
7 Source: CIA The World Factbook and Hausmann and Hidalgo
Annual Ecuadorian Crude Oil Exports (2013)
Economy
In 1999/2000, Ecuador's economy suffered from a banking crisis, with GDP contracting by 5.3% and poverty increasing significantly. In March 2000, the Congress approved a series of structural reforms that also provided for the adoption of the US dollar as legal tender.
8 Source: CIA The World Factbook and View Edition Artwork
• Dollarization stabilized the economy, and positive growth returned in the years that followed, helped by high oil prices, remittances, and increased non-traditional exports.
Economy
9 Source: IMF
Economy
Low oil prices has caused a crash in the Economy of Ecuador that is highly dependent on crude oil exports
High risk on investment due to political instability and recent natural disaster threats (increasing volcanic activity)
10 Source: IMF
Petroleum Ecuador is the smallest oil producing
member of OPEC and highly dependent on its petroleum production
11
Ecuador Total Primary Energy Consumption (2013)
Source: Ministerio de Hidrocarburos
Petroleum
The government increased exploration budget in 2014 before oil prices dropped
Private investment has not increased due to political uncertainty
12 Source: Ministerio de Hidrocarburos
Petroleum 8,832 Billion bbl Proven Oil
Reserves as of 2015
13 Source: CIA The World Factbook
Natural Gas
6,003 Billion cu m Proven Natural Gas Reserves as of 2014
14 Source: CIA The World Factbook
Energy Demand
15
Energy Demand by Sector (GWh)
Source: Ministerio de Electricidad y Energia Renovable
Electric Power Generation Capacity
Effective Power per Type of Energy (MW) 45.76% Renewable
54.24% Non-Renewable
16 Source: Ministerio de Electricidad y Energia Renovable
Energy Production
17 Source: Ministerio de Electricidad y Energia Renovable
Energy Production by Type (GWh)
Energy Imports
18
Imported Energy GWh
Source: Ministerio de Electricidad y Energia Renovable
Energy Price
19
Price of Energy by Sector (USD ₵/kWh)
Source: Ministerio de Electricidad y Energia Renovable
Energy Price
20 Source: Ministerio de Electricidad y Energia Renovable
Mean Price Colombia (USD ₵/kWh)
Future Expansion New planned hydroelectric
power plant projects
21 Source: Ecuador - International - Analysis - U.S. Energy Information Administration (EIA)
Coca Codo Sinclair Project - Sinohydro
Environmental Considerations
Increase level of efficiency in hydrocarbon consumption
Reduce social and environmental impact on activities related to hydrocarbon production
Optimization of electricity generation and energy efficiency
Increase modernization of processes and technological R&D
22 Source: CIA The World Factbook
References "Ecuador Coca Codo-Sinclair (CCS) HPP - Hydropower - Sinohydro". Eng.sinohydro.com. N.p., 2016. Web. 29 Mar. 2016.
"Ecuador - International - Analysis - U.S. Energy Information Administration (EIA)". Eia.gov. N.p., 2016. Web. 28 Mar. 2016.
Hausmann, Ricardo, and Cesar A Hidalgo. The Atlas Of Economic Complexity. Print.
International Monetary Fund,. Ecuador: Selected Issues. Washington DC: International Monetary Fund, 2015. Web. 28 Mar. 2016. Country Reports No 15/290.
International Monetary Fund,. Ecuador: Staff Report For The 2015 Article IV Consultation. Washington DC: International Monetary Fund, 2015. Web. 28 Mar. 2016. IMF Country Report No 15/289.
Ministerio de Hidrocarburos,. Rendicion De Cuentas 2015. Quito, Ecuador: Ministerio de Hidrocarburos, 2016. Web. 28 Mar. 2016. Informe De Gestion 2015.
Ministerio de Electricidad y Energia Renovable,. Estadistica Del Sector Electrico Ecuatoriano 2014. Quito, Ecuador: Ediciones Continente, 2015. Web. 28 Mar. 2016.
"The World Factbook". Cia.gov. N.p., 2016. Web. 28 Mar. 2016.
"View Edition Artwork". Stevengagnon.com. N.p., 2016. Web. 28 Mar. 2016.
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