The Mineral Industry Of Other Areas Of South America - Ecuador

The performance of Ecuador's mineral industry continued to be affected not only by depressed oil prices in recent years but also by natural disasters. In March 1987, Ecuador canceled foreign debt payments for the rest of the year and appealed for international aid because of a series of earth-quakes that destroyed villages and crippled the nation's oil industry. The earthquake destroyed a key section of the country's main oil pipeline and forced a halt to production and shipment of Ecuador's most important export product. Ecuador produces 240,000 barrels of oil per day and exports 144,000 barrels daily. Oil accounts for 60% of the nation's hard currency earnings. The Government of Ecuador asked the Organization of Petroleum Exporting Countries and other oil-producing countries to assume Ecuador's oil sales commitments. Ecuador agreed to pay the countries back in an equivalent amount of oil when it was able to resume exports.