Ecuador, OPEC’s most sacrificed partner
Posted On 05 Dec 2016
Ecuador receives the agreement of the Organization of Petroleum Exporting Countries (OPEC) to reduce the oil world production from two entirely opposing points of view. The country is the third smallest member of the cartel concerning extraction and also the second that fewer barrels will have to cut in number (26,000); But, at the same time, it is the one that shall assume the greatest sacrifice.
There is no another member of the OPEC that has to give up as much of its production as Ecuador. Its reduction rate is 4.74% of the total of extracted barrels (October as a reference). While that of the giants of extraction and export such as Saudi Arabia, Iraq or the United Arab Emirates is at 4.60% or 4.61%.
It is true that in a number of barrels, the cut of them is 5 to 18 times greater than that of Ecuador, but the prism changes if measured in proportion to the total their wells extract.
That, without considering that Iran, the third largest partner, will increase its output after the end of the US sanctions.
This inequality – over which there has not yet been a definite official pronouncement- stands out more when compared to Gabon, the smallest country in the bloc. It is the only country that will give up fewer barrels (9,000) than Ecuador, but in its case, that volume means a waiver of 4.46% of its total capacity. The pact is more benevolent for Gabon than for Ecuador and to the larger countries.