Search Documents

By Harold R. Newman

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.

Jan 1, 1989

By H. Robert Ensminger

As a result of the new mining law implemented in August 1985 and the programs conducted by the Institute Ecustoriano de Mineria (INEMIN), which was created by this legislation, there was considerably greater activity in the nonfuels mineral sector during 1986. Over the next 2 years, INEMIN will be developing a national mining plan that will guide Ecuadorean mineral development for the balance of this century. As stage one of INEMIN's mineral study, historical records were reviewed and 300 abandoned mines and 1,200 unexplored mineral deposits were available for further investigation. In 1986, INEMIN established 5 branch offices and negotiated 250 new mining contracts with foreign companies valued at $16 million. Despite all this activity, INEMIN officials estimate that 100,000 square kilometers remain available for claim staking. Technical assistance contracts were signed with Belgium, the Federal Republic of Germany, Italy, Spain, and the United Kingdom, to assist in a variety of assignments ranging from helping prepare the national minion plan to the development of industrial mineral deposits.

Jan 1, 1988

Ecuador a gross domestic product (GDP) grew 8% despite a slowdown in production and sales of petroleum, the dominant economic sector. Crude petroleum exports, which amounted to about 35% of total exports in 1977, were valued et $484 million,2 a decrease of 14% from 1976 values. Petroleum export sales were depressed because foreign buyers were somewhat uncertain that State-owned Corporación Estatal Petrólera Ecuatoriana (CEPE) held legal title to the oil until final settlement with Ecuadorian Gulf Oil Corp. In addition to the legal complication, Ecuador maintained a relatively high export price for oil until late in the year. There was also a shrinkage of traditional U.S, markets owing to the Alaskan pipeline becoming operational and an increased availability of Mexican supplies. The export market was also affected by increased domestic production in Peru and Chile, which lessened their import needs, and the pressure of greater competition from the Middle East in supplying crude oil to Caribbean refineries. About 20.4 million barrels or 40% of Ecuador's total crude exports went to the United States. Only 27 wells were drilled in Ecuador during L977; of these, 16 produced oil, 3 were dry holes, and 8 were suspended. About 31 wells were planned for 1978. Three new oilfields were discovered during 1977; two by CEPE in northeastern Ecuador and one by the Argentine State oil company Yacimientos Petraliferos Fiscales (YPF), operating in Ecuador under a service contract. CEPE's two discoveries tested at 5,000 and 1.450 barrels per day, respectively. The YPF discovery tested at about 1,000 barrels per day. Ecuador altered its position regarding

Jan 1, 1981

By Pablo Velasco

The Ecuadorean mineral sector and overall economy have retained their traditional dependence upon the production and export of hydrocarbon products. Exports of crude oil and its products accounted for 62% of the country's export earnings in 1985. Ecuador's major mineral commodities produced and exported were cement, gold, limestone, liquefied natural gas, liquefied petroleum gas, natural gas, natural gasoline, crude petroleum and condensate, raw steel, semimanufactured steel products, and sulfur.

Jan 1, 1987

By Travis Q. Lyday

During 1981, Ecuador's gross domestic product (GDP) increased by a reported 4.8% in real terms, a slight improvement over that of 1980. In current prices, the CDP in 1981 was estimated at $13.7 billion.2 The inflation rate increased to 15.6% according to official figures, above that of 1980. Ecuador's production of petroleum increased 3% in 1981 compared with that of 1980. The consortium of Corporación Estat al Petrolera Ecuatoriana (CEPE), the state oil company, and Texaco, Inc., produced almost 98% of the total from their Putumayo Basin operations in Oriente, the eastern jungle region. In sharp contrast, output from the Santa Elena Peninsula Fields, where oil was first produced commercially in 1921, continued to decline, producing only 510,000 barrels, a decrease of almost 8% compared with that of 1980.

Jan 1, 1983

By Pablo Velasco

After becoming an oil exporter in 1972, Ecuador experienced a remarkable economic upswing until 1978. However, in 1979 and 1980, a combination of only slight improvements in agricultural output and stagnating petroleum output lowered rates of real gross domestic product (GDP) expansion to 5.3% and 4.3%, respectively. In current prices, the GDP in 1980 was estimated at $11.3 billion.2 The slowdown in growth is attributable in large part to the low level of petroleum exploration in the 1972-79 period. Ecuador's production of petroleum declined 4.5% in 1980 compared with that of 1979. The consortium of Corporación Eatetal Petrolera Ecuatoriana (CEPS), the State oil company, and Texaco, Inc., operating in Ecuador's eastern jungle region was responsible for nearly all of 1980 production, The volume of total crude petroleum exports from Ecuador dropped from 44.7 million barrels in 1979 to 40 million barrels in 1980, although crude petroleum export revenues rose from $1,032 million in 1979 to $1,294 million in 1980- The latter figure represented 54% of Ecuador's 1980 merchandise exports. Crude oil exports accounted far about 46% of the value of 1979 merchandise exports. The total nonfuel mineral exports in 1980 were valued at less than $1 million.

Jan 1, 1982

By Travis Q. Lyday

Ecuador's economy continued to slow in 1982 due, in part, to declining foreign demand for oil, depressed world oil prices, and high international interest rates. Real growth of the gross domestic product (GDP) was estimated to be in the 2% to 3% range, down from the revised 4.3% recorded in 1981 and the 4.5% anticipated officially. In current prices, the GDP in 1982 was estimated at $12.1 billion.2 Inflation abated slightly from that of 1981 to an estimated 13.9% annual rate. The sucre was devalued in May by 32%, the first time in more than a decade, as a result of the pervasive flow of capital abroad. Ecuador's production of petroleum increased an estimated 1.9% in 1982 compared with that of 1981. The consortium of Corporación Estatal Petrolera Ecuatoriana (CEPE), the state oil company holding a 62.5% interest, and Texaco Inc. (37.5%) produced an estimated 98%, or approximately 211,000 barrels per day, of the total from the northern part of El Oriente, the eastern jungle region, where a Texaco-Gulf Oil Corp. partnership discovered oil in 1967. Gulf subsequently sold out to CEPE in 1977 for $117 million, Remaining production was from the Santa Elena Peninsula Fields on the Pacific coast where production has been steadily declining for several years.

Jan 1, 1984

By Pablo Velasco

Ecuador had limited mineral output, al-though the Government attempted to stimulate metallic mineral exploration and also evaluated a gypsum and a phosphate deposit. A pilot plant to exploit gold deposits was established, and there was extensive gold exploration activity in southern Ecuador. Domestic output of iron and steel declined sharply. Among all minerals, petroleum output was the dominant factor with both exports and production increasing significantly over that of 1988. Crude oil exports contributed 63% of total export earnings and about 70% of the central Government's revenue.

Jan 1, 1986

By Doris M. Hyde

The petroleum sector continued to dominate Ecuador's economic activity in 1978, accounting for nearly 10% of the gross domestic product (GDP) and 42% of total export earnings. In 1978, a more flexible petroleum export price was adopted which permitted an expansion of foreign market opportunities. During 1979, Ecuador took advantage of disruptions in the world petroleum supply and renegotiated existing export contracts to accomodate the rapidly escalating world market price. Petroleum sales on the spot market were maximized, and prices reached unprecedented levels. By taking royalty payments in-kind, Ecuador increased its volume of petroleum available for term and spot sales. Although the volume remained about the same as in 1978, the total value of 1979 petroleum exports increased to about $920 million, reflecting a 76% increase over the $523 million received for 1978 crude oil exports. Concerned about its steadily decreasing petroleum reserves (recently estimated at about 1.1 billion barrels), rapidly increasing and heavily subsidized domestic consumption, and the prospect of having to import substantial amounts of petroleum by 1983, Ecuador announced plane which it anticipates will double reserves within the next 5 years. The Government plans to spend $1 billion over the 5-year period. Plans include drilling 325 exploration and development wells and establishment of a secondary recovery program for the Sachs and shushufindi fields. Some exploration wells are expected to reach a depth of 17,000 feet. It is thought that substantial reserves exist in the southeast Amazon region. Late in 1979, it was announced that some 10 million hectares will be available for exploration tenders-probably in blocks of about 200,000 hectares each-in the Amazon jungle of the Orients and in the coastal and offshore regions. The Government planned to commission a private, independent analysis of Ecuador's petroleum reserves that would also include recommendations on efficient production levels.

Jan 1, 1981

By Gordon L. Kinney

Following a year of great uncertainty, the political situation in Bangladesh improved during 1976. The major problem for Bangladesh remained the high birth rate and crowded conditions. Bangladesh had the highest population density of any agrarian country--over 80 million people in a land area of 144,000 square kilometers, 65% of which is considered arable. The Government, with considerable foreign assistance, was actively encouraging voluntary family planning, and set a growth rate target of 2% per year or less. However, even if the growth rate was reduced to the target level immediately, the population of Bangladesh would nevertheless nearly double within 20 years.

Jan 1, 1980

By E. Chin

The production of crude mineral commodities in Bangladesh was limited to natural gas, a small amount of construction materials, and clay for ceramics and bricks. No metallic minerals were mined. The only mineral commodity of economic significance was natural gas. Natural gas production has 'been climbing steadily and becoming an increasingly important source of energy for the country. Proved gas reserves were over 4.5 trillion cubic feet, but the amount has been increasing as exploration discovers large new deposits. Some sources quote reserves at over 10 trillion cubic feet.

Jan 1, 1984

By E. Chin

The domination of Bangladesh's mineral industry by natural gas was in for some possibly significant changes. A modest flow of crude oil was struck in a gas development well in the northeastern corner of the country. This was the first commercial flow of crude oil in Bangladesh. All crude oil was being imported, which cost a significant proportion of the nation's foreign exchange earnings. The development of an oilfield producing only a few thousand barrels per day would be a welcome help to the economy. Additional exploration at a 1985 coal discovery in the northwest indicated a considerable reserve of good-quality coal at a depth suitable for mining. If the coal is mined, it would be a boon to the local economy because natural gas was not available in the area.

Jan 1, 1988

Mineral production was of little significance in the country's economy, and Bangladesh was not a world-ranked producer of any mineral commodity during 1977. Natural gas was the most important mineral exploited; however, reserves were sufficient to allow for much greater production, Economically, Bangladesh made some progress in 1977-782 in its struggle against poverty, underdevelopment, and rapidly increasing population. The gross domestic product (GDP) grew 8%, mainly owing to a 13% increase in food grain production, the key economic indicator in this highly agricultural nation. GDP at current prices dropped slightly in Fiscal Year (FY) 1976.77 to $6.6 billion3 and rose to $7.2 billion in FY 1977.78. The population rose from 81 million in FY 1975-76 to about 85 million in FY 1977-78, resulting in an increase of per capita GDP from $83 to $85 during the same period. The high annual population growth rate, over 3% in 1976 and about 2.8% in 1977, was recognized by the Government as the main problem facing the country. Average density was 525 people per square kilometer. A similar density would have the entire world population living within the continental United States.

Jan 1, 1981

By E. Chin

The mineral industry of Bangladesh was totally dominated by natural gas production and its downstream uses. A small amount of cement was produced, and clays were used locally for ceramics and construction materials. Nitrogenous fertilizer was produced from natural gas and a modest, scrap-based steel industry produced steel for local consumption. The country has been developing and using its abundant and inexpensive gas reserves as fast as practical. The population, however, was predominantly dependent on agriculture for its livelihood. The industrial sector accounted for 10% of the economy, and most of the industrial output was directly associated with agricultural products jute, tobacco, and textiles. Industrial expansion, even with the availability of gas, was severely constrained because of limited domestic demand, lack of skilled work force and management, poor infrastructure, and a low rate of domestic savings. To put greater emphasis on the industrial sector, the Government established a National Committee for Industrial Development in July. The Committee instituted policy reforms in the areas of trade and investment. One important step was to move from a positive import list to a negative list, thereby permitting imports of items not restricted or banned. The system for recovering and approving new domestic or foreign industrial investments was streamlined to expedite what had become a cumbersome, bureaucratic exercise. To encourage industrial development in areas away from the crowded urban centers, several economic incentives reportedly were adopted. These included a reduced tax rate on imported machinery, exemption of import license fees, a reasonable debt equity rate, and a 9-year income tax exemption period.2 In the trade sector, imports increased 12% in fiscal year (FY) 19843 mainly

Jan 1, 1987

By E. Chin

Natural gas was the only economically significant mineral produced. A significant amount of the gas output was consumed in the production of nitrogen fertilizer and electric power. Proved reserves of natural gas were abundant and at least sufficient to supply most of the country's industrial and domestic needs for many decades to come. Other mineral production was of little importance to the Bangladesh economy, although there were prospects for developing some of the nonmetallic minerals. The flat river-delta terrain comprising nearly all of Bangladesh made the potential for discovering major, economically exploitable mineral deposits poor. The deep sediments, however, have good potential for crude oil or additional natural gas discoveries.

Jan 1, 1985

By E. Chin

Bangladesh, whose population probably passed 100 million by yearend, remained one of the poorest countries in the world, with a per capita gross domestic product (GDP) of $126.2 Its only economically significant mineral production was natural gas. A few other minerals or mineral-based commodities were also produced, generally for local consumption. These included cement, clays, nitrogenous fertilizers, limestone, salt, steel, and pilot plant production of ilmenite and rutile. Exploration for oil was a continuing quest, which was hindered by a lack of funding and a hesitancy on the part of foreign petroleum companies to make long-term or expensive exploration commitments. PODUCTION AND TRADE Production of natural gas continued to increase as more use was being made of the abundant gas reserves variously put at between 7 and 16 trillion cubic feet. The main consumers were nitrogenous fertilizer producers and electric powerplants, but other industries were converting to natural gas from imported coal or fuel oil wherever possible.

Jan 1, 1986

By Gordon L. Kinney

The only economically important mineral currently produced in Bangladesh was natural gas. Bangladesh was not a world? ranked producer of any mineral commodity, but the possibility of producing and exporting commercial amounts of liquefied natural gas (LNG) was being examined. Proved reserves of natural gas were sufficient to supply most of the country's industrial and domestic heating and electric needs and still support an export-oriented LNG plant. Other mineral production was of virtually no significance to the economy, although there were a few prospects for nonmetallic mineral development. Bangladesh continued to make economic progress during 1978 and into early 1979. Gross domestic product (GDP) at current prices rose from $6.6 billion in 1976-772 to $8.2 billion in 1977?78 and $9.3 billion in 1978.79.2 In fiscal 1979, the economic conditions were favorable until a severe drought hit most of the country. It W88 reported that conditions were the worst in 40 years, and 88 of July 1979, substantial crop losses were predicted. The agricultural sector accounts for over 53% of the GDP and about 75% of all employment. The poor weather will cause economic problems in the form of slower growth, larger trade deficits, and a higher rate of inflation. The 1978.79 statistics showed that real GDP increased just 4%.

Jan 1, 1981

By E. Chin

Natural gas was Bangladesh's only significant exploited mineral. A few other minerals or mineral-based commodities were produced for local consumption. The most valuable were nitrogen fertilizer, salt, cement, and clay for brick.2 The most important mineral industry development of 1987 was the start of modest production of crude oil, the first discovered and produced in the country. PRODUCTION AND TIADE Production of natural gas from the nation's huge reserves continued to increase but was limited by the lack of residential and industrial demand. Gas reserves of 7 trillion to 16 trillion cubic feet were sufficient for far more production than the country could efficiently utilize for many years. The country's consumption-to-reserves ratio was one of the lowest of the developing nations. Mineral exports have been insignificant, comprising a small amount of nitrogen fertilizer. Nitrogenous fertilizer exports could become important when planned new capacity comes on-stream. Mineral imports were dominated by crude petroleum.

Jan 1, 1989

By Edmond Chin

Mineral production was of minor importance to the country's economy, and Bangladesh was not a ranking world producer of any mineral commodity in 1980. Natural gas was the most important mineral exploited, and reserves were sufficient to allow a significant increase in its use. A greater proportion of the domestic heat and electrical energy needs could be filled by increased production and distribution of natural gas. Also, the export of natural gas was feasible either by pipeline to India or in the form of liquefied natural gas (LNG). Some nonmetallic minerals could be developed, as well as coal and peat, given sufficient capital investment. Bangladesh's strongly agricultural economy made fair progress in 1979.80.1 The major harvest of November-December 1979 turned out to be better than had been anticipated after an early drought left poor planting conditions. Secondary crops (harvested in February-March 1980 and June- July 1980) were excellent. There were prospects for a record harvest in fiscal year

Jan 1, 1982

By E. Chin

The only economically significant mineral exploited in Banglades - during 1981 was natural gas. Nitrogenous fertilizer production was important to the agricultural sector and was totally dependent on the natural gas for fuel and raw material. Domestic cement plants were also fu pled by natural gas. The flat river-delta terrain for most of Bangladesh makes the potential for discovering major mineral deposits poor. No large deposits of metal ores have been found and only in the small hilly southeastern section of the country is there even much chance of finding any. Heavy mineral sand deposits may eventually be exploited along the Chittagong coastline. There is a good potential for crude oil discoveries. The Bangladesh economy has been heavi¬ly subsidized by billions of dollars of foreign aid since the country's inception. A World Bank report recommended total aid needs of over $2.6 billion in fiscal year (FY) 1980-81. It received commitments for barely over one-half that amount.

Jan 1, 1983