Relationship among Ecuador's petroleum industry, the Organization of Petroleum Exporting Countries (OPEC), and the Latin American Organization of Energy (OLADE)

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1976

OSTI ID:5309186

Ortega, G E

Oil companies operating in Ecuador possess a high leverage of financial and technological power. This study shows that use of that power during the latter part of 1974 and the beginning of 1975 was detrimental to the progress of Ecuador's oil industry. The decision of the oil companies to stop oil production and exportation during that time because of the government's tax increases prompted a deficit to the country and a loss to the multinationals. The author maintains that the success of the oil companies and of the government depends on maintaining an equilibrium of power between them. Therefore, this study attempts to find out whether OPEC or OLADE can supply the host country with enough strength to attain this equilibrium. Interviews and surveys conducted in the United States and in Ecuador among diplomatic and consular representatives of various countries around the world, as well as with sample populations of citizens of Ecuador, the government, and private and public institutions indicate that the tax increases were reasonable, that Ecuador had the right and the obligation to defend its economic interests, that the price of its oil was competitive, and that the host country's association with OPEC proved to be beneficial to its industry. Therefore, primary sources of information confirm in this study that there is a relationship between Ecuador's oil industry and OPEC. A lower degree of importance is given to OLADE because it is an institution of recent creation and it is not specialized in the petroleum business.

• OSTI ID: 5309186
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
DEVELOPING COUNTRIES
ECONOMIC POLICY
ECUADOR
GOVERNMENT POLICIES
INDUSTRY
INSTITUTIONAL FACTORS
INTERNATIONAL ORGANIZATIONS
LATIN AMERICA
MANAGEMENT
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM INDUSTRY
SOUTH AMERICA