EIA: Country Analysis Brief: Ecuador - October 2017 - eng (pdf)

Ecuador's energy mix is largely dependent on oil, which represented 76% of the country's total energy consumption in 2016 (Figure 2).¹ Hydroelectric power was the second-largest energy source. Natural gas and nonhydro renewable fuels account for the remainder of Ecuador's energy mix.

Ecuador, a member of the Organization of the Petroleum Exporting Countries (OPEC), produced about 548,000 barrels per day (b/d) of petroleum and other liquids in 2016.² The oil sector accounts for more than half of the country's export earnings and about 25% of public sector revenues (See also OPEC Revenues Fact Sheet).³

Resource nationalism and debates about the economic, strategic, and environmental implications of oil sector development are prominent issues in the politics of Ecuador and the policies of its government. Ecuador has a challenging investment environment prompted by government initiatives to increase the share of crude oil revenue for the country, which has contributed to near-stagnant oil production as output has stayed relatively constant over the past 10 years. A lack of sufficient domestic refining capacity to meet local demand has forced Ecuador to import refined products, limiting net oil revenue.

Acknowledging its heavy reliance on the oil sector in the current uncertain oil price conditions, Ecuador released its National Energy Agenda 2016-2040 in October 2016 that is designed to transition Ecuador's energy sector to a more diversified energy matrix. The Agenda defines five major strategic objectives:

1) An integrally planned, fair and inclusive energy sector
2) A diversified, renewable, and sustainable energy matrix
3) Energy sovereignty and security with quality energy supply for all the population
4) Energy efficiency
5) Regional energy integration and contribution to sustainable global energy development⁴

The policy roadmap expects hydropower to increase from 58% of electricity generation in 2015 to 90% in 2017, contributions from nonconventional renewable energy, and more efficient thermoelectric plants.⁵