Ecuador warns protests could force oil production to stop

Ecuador’s energy ministry warned on Sunday that oil production has reached “critical” levels and could shut down entirely within 48 hours if protests and roadblocks continue in the troubled South American country.

Nearly two weeks of indigenous protests over rising fuel prices and the cost of living have paralyzed transport in Ecuador as roadblocks were put 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 shut down in less than 48 hours as vandalism, oil well confiscation and road closures have prevented the movement of equipment and diesel needed to keep operations running.”

“Today, the numbers show a more than 50 percent drop” in production, which was about 520,000 barrels a day before the protests, it said.

Ecuador’s economy is heavily dependent on oil revenues, with 65 percent of production 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.

Bottlenecks are already being reported in the capital, where prices have skyrocketed.

According to various sources, the violence between police and protesters has reportedly left five dead, while around 500 people were injured.

As of Sunday, public-private economic losses from the protests totaled $500 million, according to Production Minister Julio Jose Prado.

“Each additional day of downtime is a loss of $40 to $50 million,” he said.

Total losses since the protests began include 8.5 million liters of milk worth $13 million and $90 million in farm goods and livestock.

The tourism industry, meanwhile, has seen cancellations soar to 80 percent, with at least $50 million in losses.

In addition, “12 days of downtime in the flower farming sector resulted in $30 million in truck and farm losses and damage,” Prado said.