Ecuador crisis: Five things you need to know about Ecuador

Explore the complex facets of Ecuador, from the challenges of narcotrafficking and violence, to the struggle of indigenous peoples for their territories, the detention of Assange and the economic stakes linked to oil, while discovering the unique treasure of the Galapagos Islands, in this captivating account of the tumultuous evolution of a nation.

Share:

Crise équatorienne

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Ecuador, where a state of emergency was declared on Thursday in the wake of the murder of one of the main presidential candidates, is a small oil-exporting Andean country plagued by drug trafficking.

Cocaine and Violence: Ecuador Faces a Security Crisis

Situated between Colombia and Peru, the world’s biggest cocaine producers, Ecuador has become a major center for the distribution of white powder to Europe and the United States. The country of 18 million inhabitants is experiencing the worst escalation of violence in its recent history. Drug-related crime has led to a near doubling of the homicide rate between 2021 and 2022, from 14 to 25 per 100,000 inhabitants. Deadly shootings have become frequent, mainly in Guayaquil, a major port in the south-west of the country.

Gang clashes have also led to repeated massacres in prisons, with over 420 inmates killed since February 2021. President Guillermo Lasso blamed “organized crime” after the murder of centrist Fernando Villavicencio, shot dead in Quito on August 9.

Ecuador: Indigenous Peoples Struggle for Territory

The 14 recognized indigenous “nationalities” are fighting to defend their ancestral territories threatened by oil and mining extraction. On August 20, at the same time as the first round of the presidential election, a referendum will be held on suspending oil production in the Yasuni nature reserve in northeastern Amazonia. However, the consultation is divisive, even within indigenous communities. Indigenous people represent 7% of the population according to the latest census, dating from 2010, and 25% according to their representatives, citing anthropological studies.

Indigenous peoples staged a historic uprising in 1990, as a result of which the government ceded 2.3 million hectares of land to the Amazon communities from which the oil is extracted. The powerful Confederation of Indigenous Nationalities (Conaie) also took part in the uprisings that toppled three presidents between 1997 and 2005. It spearheaded major protests in June 2022 against the rising cost of living, which left six people dead and forced the government to cut fuel prices.

Assange in Prison: Fight for Extradition

For seven years, from 2012 to 2019, WikiLeaks founder Julian Assange, who had published confidential documents on US military and diplomatic activities, took refuge in the Ecuadorian embassy in London. But the country withdrew diplomatic asylum after Lenin Moreno (2017-2021) came to power, closer to the United States than his predecessor Rafael Correa. Arrested by British police in April 2019, the Australian has since been held in a high-security prison near London, from where he has appealed an extradition order to the USA.

Ecuadorian Economy: Oil and Main Sectors

Oil production has been one of the mainstays of the Ecuadorian economy since the 1970s. Crude oil, the main export, generated revenues of $10 billion in 2022, around 10% of GDP. Other major exports include bananas (the world’s leading exporter), shrimps, cocoa and roses. In 2022, GDP growth was 2.9% according to the World Bank.

The Galapagos Islands: Ecuador’s Unique Treasure

Ecuador, bathed to the west by the Pacific, is one of South America’s smallest states, with a surface area of 256,370 km2. The Galapagos Islands, reputed to have inspired British naturalist Charles Darwin’s theory of the evolution of species in the 19th century, are classified by UNESCO as a World Heritage Site for their unique flora and fauna.

This volcanic archipelago, named after its giant tortoises, is one of the places most exposed to the climate crisis. Vulnerable species include marine iguanas, penguins, cormorants and sea lions. In May, Ecuador obtained a reduction of around $1 billion in its foreign debt, with a commitment to allocate $450 million to the protection of the Galapagos Islands.

A week before COP30, Brazil announces an unprecedented drop in greenhouse gas emissions, driven mainly by reduced deforestation, with uneven sectorial dynamics, amid controversial offshore oil exploration.
The Catabola electrification project, delivered by Mitrelli, marks the first connection to the national grid for several communities in Bié Province.
The Algerian government plans a full upgrade of the SCADA system, managed by Sonelgaz, to improve control and supervision of the national electricity grid starting in 2026.
Facing annual losses estimated at up to $66mn, SEEG is intensifying field inspections and preparing the rollout of smart meters to combat illegal connections.
The British government confirms its ambition to decarbonise the power sector by 2030, despite political criticism and concerns over consumer energy costs.
Enedis plans a €250mn ($264mn) investment to strengthen Marseille’s electricity grid by 2030, including the full removal of paper-insulated cables and support for the port’s electrification.
Energy ministers coordinate investment and traceability to curb China’s dominance in mineral refining and stabilize supply chains vital to electronics, defense, and energy under a common G7 framework.
Electricity demand, amplified by the rise of artificial intelligence, exceeds forecasts and makes the 2050 net-zero target unattainable, according to new projections by consulting firm Wood Mackenzie.
Norway's sovereign wealth fund generated a €88 billion profit in the third quarter, largely driven by equity market performances in commodities, telecommunications, and finance.
The German regulator is preparing a reform favourable to grid operators, aiming to adjust returns and efficiency rules from 2028 for gas pipelines and 2029 for electricity networks.
Bill Gates urges governments and investors to prioritise adaptation to warming effects, advocating for increased funding in health and development across vulnerable countries.
The Malaysian government plans to increase public investment in natural gas and solar energy to reduce coal dependency while ensuring energy cost stability for households and businesses.
The study by Özlem Onaran and Cem Oyvat highlights structural limits in public climate finance, underscoring the need for closer alignment with social and economic goals to strengthen the efficiency and resilience of public spending.
Oil major ExxonMobil is challenging two California laws requiring disclosure of greenhouse gas emissions and climate risks, arguing that the mandates violate freedom of speech.
The European Court of Human Rights ruled that Norway’s deferral of a climate impact assessment did not breach procedural safeguards under the Convention, upholding the country’s 2016 oil licensing decisions.
Singapore strengthens its energy strategy through public investments in nuclear, regional electricity interconnections and gas infrastructure to secure its long-term supply.
As oil production declines, Gabon is relying on regulatory reforms and large-scale investments to build a new growth framework focused on local transformation and industrialisation.
Cameroon will adopt a customs exemption on industrial equipment related to biofuels starting in 2026, as part of its new energy strategy aimed at regulating a still underdeveloped sector.
Facing a persistent fuel shortage and depleted foreign reserves, the Bolivian parliament has passed an exceptional law allowing private actors to import gasoline, diesel and LPG tax-free for three months.
Ghana aims to secure $16 billion in oil revenues over ten years, but the continued drop in production raises doubts about the sector’s long-term stability.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.