Ecuadorian

Industrial
Underdevelopme
nt due Oil
Concentration
Elias Troncoso Cornejo 3C
 Thesis Statement : Although oil has been
beneficial to Ecuador's economy, its
concentration has delayed the development of
other industries to boost the economy
 The
● 11% of national GDP
Ecuadorian
● Concentrates 28% of its national
petroleum
industry on oil. industry
● Produces more than 170 million

barrels of oil annually.

https://www.aihe.org.ec/wp-content/uploads/2021/04/PETRO
LEO-EN-CIFRAS-2020-WEB-OK.pdf
● 45% of total exports 2021
 Oil Boom
(1972)
● Dictatorial Government

● Hydrocarbons Law

● 1.3 billion dollars in exports

● National GDP: $1062 billion- https://editorial.iaen.edu.ec/wp-content/uploads/s

ites/12/2019/05/Ecuador-1972-1999-del-boom-de
$13,956 billion l-petr%C3%B3leo-a-la-p%C3%A9rdida-del-signo-mo
netario-Tesis-J.-Oleas.pdf
● Attractive country for foreign 2019
investment
 High oil barrel
price (1972-
1976)
● 360 thousand barrels per
day

● $72

● 16% growth in exports

● 46.9% increase in revenues

Instituto de Altos Estudios Nacionales 2019
Main focus
on the oil
industry
● Access to International loans

● Lack of rule of law

● Internal government expenses

● Volatility of Oil Prices

Lack of State Policies to other Potential Industries

● External demand for Raw Materials

● Unattended Industrial Opportunities

● Tourism Potential
Can the country's economy
continue to be dependent on
petroleum?

Maldonado, C. (n.d.). Ingresos petroleros en

Ecuador: ¿Puede el país seguir

sosteniendo Su Economía en el Crudo?

Gasto Público. Retrieved October 27,

2022, from

https://www.gastopublico.org/informes-

del-observatorio/ingresos-petroleros-en-

ecuador-puede-el-pais-seguir-

sosteniendo-su-economia-en-el-crudo
 Potential of the Mining Sector

60% 52%
Peru Chile
10% of their annual GDP 9,1% of their annual GDP
GDP: 223.2 Billion USD GDP: 317.1 Billion USD

39% 58,8%
Ecuador Mexico
5.2% of their annual GDP 8,6% of their annual GDP
GDP: 106.1 Billion USD GDP:1.2 Tillion USD

https://www.ciat.org/taller-de-actualizacion-en-administracion-tributaria-minera-desafios-de-los-precios-de-transferencia-en-la-mineria/
 New Responsable Mining and Electrical Projects

Prevent
catastrophes
Hydroelectric
resources

Development of
Prices do not
Natural Gas
devalue
Industry
 New Electrical Projects Results
Electricity production
in June-October 2022
(2,238 GWh)

❖ Wind power 0,21%

❖ Biogas 0,14%

❖ Photovoltaic 0,11%

❖ Thermal 6,36%
2015 2016 2017 2018 2019 2020 2021
❖ Hydroelectric
92,86%
(Cámara de Industrias
y Producción 2022)
Projected mining exports 2021-2049
 Employment generated by the Loma Larga Project (2021)

Period: Economic
Period: Construction Period: Operation
Assessment:
Total:4,800 Jobs Total:2,016 Jobs
Total:304 jobs
CONCLUSION