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Ecuador - Issues and options in the energy sector (Inglês)

The main energy issues in Ecuador concern petroleum exploration, development of existing oil fields, the role of the State Petroleum Corporation (CEPE), inadequate energy pricing, and the power sub-sector's financial difficulties. Petroleum exploration is the key investment priority in Ecuador's energy sector. The country is so dependent on oil that whatever happens to the volume of oil production or to oil prices overshadows developments in the rest of the economy. In accordance with the country's requirements and good prospects for future oil discoveries, the overall strategy for the petroleum sub-sector should aim to increase current petroleum production as long as production is backed by a strong exploration program. The role of CEPE should be redefined and the government should take actions to implement its decision. CEPE is not able to function as an efficient oil company mainly because of limited exploration involvement, and insufficient autonomy. Petroleum pricing policy involves heavy subsidies with retail prices roughly 50 percent of economic cost, and power tariffs exceedingly low when compared to marginal cost. The power sub-sector has been facing serious financial difficulties for a number of years and only became apparent at the turn of the decade.


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    Relatório Econômico ou Setorial Pré-2003

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    América Latina e Caribe,

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    Ecuador - Issues and options in the energy sector

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