Energy Advisor

Ecuador’s government and the country’s main Indigenous organization reached an agreement on June 30 following more than two weeks of unrest. The protests were related to a number of demands from Indigenous organization Conaie, including a decrease in the price of fuel. Under the agreement, President Guillermo Lasso’s government reduced gasoline prices by 15 cents to $2.40 per gallon, while the price of diesel was lowered by the same amount to $1.75. During the protests, oil output, Ecuador’s main source of revenue, had been cut in half to approximately 234,500 barrels per day, costing the industry about $213 million, according to figures from the energy ministry. Why was the oil sector such a key flashpoint in the protests, and will the agreement between Conaie and the Ecuadorean government be enough to stop future unrest? What are the most important parts of the agreement related to Ecuador’s natural resources as a whole? What is the likelihood of a large-scale oil reform in Ecuador, and what is the outlook for the industry in the wake of the protests?