The South American country announced its withdrawal from the Organization of Petroleum Exporting Countries
Oil extraction pump / Reference image / Pixabay
LatinAmerican Post | Marcela Peñaloza
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Leer en español: Ecuador le dice adiós a la OPEP
In a press release, the Ecuadorian government through the Ministry of Energy and Non-Renewable Natural Resources reported that Ecuador will cease to belong to the Organization of Petroleum Exporting Countries (OPEC) from January 1, 2020.
The main reason for making the decision is the fiscal sustainability of Ecuador. According to the statement, "this measure is aligned with the National Government Plan to reduce public spending and generate new income."
In the same document, the government highlights its participation in the organization and affirms that "it will maintain the ties formed with the OPEC countries". It also ensures that Ecuador will continue to contribute to the stabilization of the oil market worldwide with the objective of guaranteeing “equitable access to energy”.
COMUNICADO OFICIAL | Informamos sobre la decisión de Ecuador de dejar de pertenecer a la Organización de Países Exportadores de Petróleo (OPEP), en 2020. Conozca más detalles ⬇ pic.twitter.com/5AjaeYgeU4— Recursos y Energía EC (@RecNaturalesEC) 1 de octubre de 2019
The Latin American country had pledged to "produce 524,000 barrels of oil per day, which implied a reduction of 16,000 with respect to the volume of reference production for the country," explains the BBC. However, according to Reuters, the country had repeatedly failed to meet the quota set.
This is not the first time that Ecuador has withdrawn from the organization since it canceled its membership in 1992 after having joined in 1973. Later, in 2007, 15 years later, the country returned to OPEC again.
After Ecuador's exit from OPEC, Venezuela will be the only Latin American country that belongs to this group of world oil producers.