The Mineral Industry Of Other Areas Of South America - Ecuador

Ecuador a gross domestic product (GDP) grew 8% despite a slowdown in production and sales of petroleum, the dominant economic sector. Crude petroleum exports, which amounted to about 35% of total exports in 1977, were valued et $484 million,2 a decrease of 14% from 1976 values. Petroleum export sales were depressed because foreign buyers were somewhat uncertain that State-owned Corporación Estatal Petrólera Ecuatoriana (CEPE) held legal title to the oil until final settlement with Ecuadorian Gulf Oil Corp. In addition to the legal complication, Ecuador maintained a relatively high export price for oil until late in the year. There was also a shrinkage of traditional U.S, markets owing to the Alaskan pipeline becoming operational and an increased availability of Mexican supplies. The export market was also affected by increased domestic production in Peru and Chile, which lessened their import needs, and the pressure of greater competition from the Middle East in supplying crude oil to Caribbean refineries. About 20.4 million barrels or 40% of Ecuador's total crude exports went to the United States. Only 27 wells were drilled in Ecuador during L977; of these, 16 produced oil, 3 were dry holes, and 8 were suspended. About 31 wells were planned for 1978. Three new oilfields were discovered during 1977; two by CEPE in northeastern Ecuador and one by the Argentine State oil company Yacimientos Petraliferos Fiscales (YPF), operating in Ecuador under a service contract. CEPE's two discoveries tested at 5,000 and 1.450 barrels per day, respectively. The YPF discovery tested at about 1,000 barrels per day. Ecuador altered its position regarding