The Mineral Industry Of Other Areas Of South America - Ecuador

Ecuador's economy continued to slow in 1982 due, in part, to declining foreign demand for oil, depressed world oil prices, and high international interest rates. Real growth of the gross domestic product (GDP) was estimated to be in the 2% to 3% range, down from the revised 4.3% recorded in 1981 and the 4.5% anticipated officially. In current prices, the GDP in 1982 was estimated at $12.1 billion.2 Inflation abated slightly from that of 1981 to an estimated 13.9% annual rate. The sucre was devalued in May by 32%, the first time in more than a decade, as a result of the pervasive flow of capital abroad. Ecuador's production of petroleum increased an estimated 1.9% in 1982 compared with that of 1981. The consortium of Corporación Estatal Petrolera Ecuatoriana (CEPE), the state oil company holding a 62.5% interest, and Texaco Inc. (37.5%) produced an estimated 98%, or approximately 211,000 barrels per day, of the total from the northern part of El Oriente, the eastern jungle region, where a Texaco-Gulf Oil Corp. partnership discovered oil in 1967. Gulf subsequently sold out to CEPE in 1977 for $117 million, Remaining production was from the Santa Elena Peninsula Fields on the Pacific coast where production has been steadily declining for several years.