The Non-Renewable Resources minister of Ecuador, Wilson Pastor, responsible for oil policy, quantified with great accuracy the consequences of seizures in the price of oil to the economy of the country. A dollar in the price is $ 46 million more a day in revenue, over 16,000 million a year. Only that the equation works well up than down, so that no abrupt changes in interest rates.
Shepherd is located in Madrid, from a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Riyadh to participate in a seminar on the prospects of the oil sector in the country organized by the Embassy of Ecuador. But the international situation is inevitable in the conversation, especially when the Ecuadorian ambassador in Madrid, Galo Chiriboga, joked in public asking to continue raising the price of oil.
Question. What impact is taking the current situation in Libya? Response. It is a serious situation that has shaken the market price of oil. Hopefully this situation is that, a situation happens and that does not affect global economic activity. OPEC, as we know, is committed there is enough supply so that prices do not soar to stratospheric levels, which ultimately goes against the global economy and finally against producer countries.
P. And specifically for the production of Ecuador? R. For every dollar that lowers the price of oil, the Ecuadorian economy is affected in 46 million dollars a day. And for every dollar up, win that. But beyond the short term and the situation we want stable prices, fair prices and that no financial speculation play.
And do not extend these political conditions that make it extremely unstable market today. P. Since I started this in the Arab world, has there been a direct effect on the oil market in Latin America? R. There is a direct reflection of what is happening. The problem of Libya has made to fire Brent [reference market price of London] about $ 100.
And now there is the curiosity that the price of our crude oil, which is heavy, is being led more than Brent WTI [Texas market index], which is our normal marker. What does that mean? That there is anxiety in the environment based on a likelihood of oil shortages. I think it will be temporary.
OPEC will take whatever steps are for the market to get all the supply you need. P. At what point is the Court has ordered the oil company Chevron and how far? R. Chevron's sentence is a sentence of last resort at the court in the province of Napo. 8,560 million have asked [for compensation for pollution].
Both sides have appealed. The Ecuadorian side, plaintiffs believe that is enough, and Chevron believes it is justified. So it will still take a period of controversy for some time. P. Is it a statement that is in tune with the Ecuadorian Government's environmental policy? R. Well, the Ecuadorian government is not star in this trial, the communities and their representatives.
Going to remedy the northeastern part of Ecuador suffered serious ecological and human devastation. This goes into what the Government believes it is the correct line. P. As the project Yasuní [Ecuador waiver to drill an oil reserve in a jewel of biodiversity if the international community's 3,500 million dollars by the end of 2012], is able to meet the deadline? R.
Look, just get out of a global economic crisis comparable only to the Great Depression of the 30's. It is normal at this time developed countries are pending crisis. This has delayed the contributions of some major countries like Germany or France. Spain is the first industrialized country that gives us a fixed resource, the most important [one million euros].
Let's see this year as global economic growth be frank, what is the reaction of the international community. Unfortunately time is short and the end of the year has to be taken and a decision. P. But there were firm commitments have been delayed or canceled because of the crisis? R. I think that has been delayed by the crisis and is absolutely normal.
P. Ecuador boasts of its environmental policy. Do you consider an example? R. Coincidentally, today, World Finance of London, covering the largest financial institutions worldwide, has just given Petroecuador, Ecuador's state company, the award for best company in environment and reduction of carbon bonds.
We did a project that will allow us to save $ 75 million per year to replace diesel and not to burn the gas used as fuel. This project is a pioneer in Latin America in saving carbon dioxide emissions. And we have UN-approved sale of our bonds in the market. For that reason I believe I have given the award for best Latin American business environment.
P. Is this kind of decision or delay somewhat expensive oil production? R. No. Look, at this time was burning the gas at zero cost. Today we do is use that gas does not burn, and that reduces the costs of electricity generation, because the price of diesel is much more expensive than gas.
P. Since the project in Ecuador to better exploit the country's resources with new technology, the scope for investment seems enormous. What is the position of Spanish companies in this business? R. Spanish companies are well positioned. Repsol has signed two contracts with us, will significantly expand its activities in the block [operating] which has and will have a part in another block in the south.
On the other hand, we have the company Petroro, Fierro Group, which has two major oil fields. And finally the distribution of Spanish companies have LNG liquefaction plant projects in Ecuador and Repsol also will become, hopefully, our main supplier of liquefied natural gas, which is in Peru (Camisea).
We will sell this gas, hopefully the next few months. P. "Would highlight any difference between his relationship with the oil companies and those with the governments of Venezuela or Bolivia? R. I can not make an observation about what happens in Venezuela or Bolivia, but I say that the policies of President Rafael Correa is that whoever wants to invest in Ecuador is welcome, on terms favorable to the State.
Spain is doing well, such as China and Chile. Spain is a leader in investment after China, not just oil, in telephony, in infrastructure, hydropower, in the distribution of natural gas, Spain has excellent trade relations with Ecuador.
Shepherd is located in Madrid, from a meeting of the Organization of Petroleum Exporting Countries (OPEC) in Riyadh to participate in a seminar on the prospects of the oil sector in the country organized by the Embassy of Ecuador. But the international situation is inevitable in the conversation, especially when the Ecuadorian ambassador in Madrid, Galo Chiriboga, joked in public asking to continue raising the price of oil.
Question. What impact is taking the current situation in Libya? Response. It is a serious situation that has shaken the market price of oil. Hopefully this situation is that, a situation happens and that does not affect global economic activity. OPEC, as we know, is committed there is enough supply so that prices do not soar to stratospheric levels, which ultimately goes against the global economy and finally against producer countries.
P. And specifically for the production of Ecuador? R. For every dollar that lowers the price of oil, the Ecuadorian economy is affected in 46 million dollars a day. And for every dollar up, win that. But beyond the short term and the situation we want stable prices, fair prices and that no financial speculation play.
And do not extend these political conditions that make it extremely unstable market today. P. Since I started this in the Arab world, has there been a direct effect on the oil market in Latin America? R. There is a direct reflection of what is happening. The problem of Libya has made to fire Brent [reference market price of London] about $ 100.
And now there is the curiosity that the price of our crude oil, which is heavy, is being led more than Brent WTI [Texas market index], which is our normal marker. What does that mean? That there is anxiety in the environment based on a likelihood of oil shortages. I think it will be temporary.
OPEC will take whatever steps are for the market to get all the supply you need. P. At what point is the Court has ordered the oil company Chevron and how far? R. Chevron's sentence is a sentence of last resort at the court in the province of Napo. 8,560 million have asked [for compensation for pollution].
Both sides have appealed. The Ecuadorian side, plaintiffs believe that is enough, and Chevron believes it is justified. So it will still take a period of controversy for some time. P. Is it a statement that is in tune with the Ecuadorian Government's environmental policy? R. Well, the Ecuadorian government is not star in this trial, the communities and their representatives.
Going to remedy the northeastern part of Ecuador suffered serious ecological and human devastation. This goes into what the Government believes it is the correct line. P. As the project Yasuní [Ecuador waiver to drill an oil reserve in a jewel of biodiversity if the international community's 3,500 million dollars by the end of 2012], is able to meet the deadline? R.
Look, just get out of a global economic crisis comparable only to the Great Depression of the 30's. It is normal at this time developed countries are pending crisis. This has delayed the contributions of some major countries like Germany or France. Spain is the first industrialized country that gives us a fixed resource, the most important [one million euros].
Let's see this year as global economic growth be frank, what is the reaction of the international community. Unfortunately time is short and the end of the year has to be taken and a decision. P. But there were firm commitments have been delayed or canceled because of the crisis? R. I think that has been delayed by the crisis and is absolutely normal.
P. Ecuador boasts of its environmental policy. Do you consider an example? R. Coincidentally, today, World Finance of London, covering the largest financial institutions worldwide, has just given Petroecuador, Ecuador's state company, the award for best company in environment and reduction of carbon bonds.
We did a project that will allow us to save $ 75 million per year to replace diesel and not to burn the gas used as fuel. This project is a pioneer in Latin America in saving carbon dioxide emissions. And we have UN-approved sale of our bonds in the market. For that reason I believe I have given the award for best Latin American business environment.
P. Is this kind of decision or delay somewhat expensive oil production? R. No. Look, at this time was burning the gas at zero cost. Today we do is use that gas does not burn, and that reduces the costs of electricity generation, because the price of diesel is much more expensive than gas.
P. Since the project in Ecuador to better exploit the country's resources with new technology, the scope for investment seems enormous. What is the position of Spanish companies in this business? R. Spanish companies are well positioned. Repsol has signed two contracts with us, will significantly expand its activities in the block [operating] which has and will have a part in another block in the south.
On the other hand, we have the company Petroro, Fierro Group, which has two major oil fields. And finally the distribution of Spanish companies have LNG liquefaction plant projects in Ecuador and Repsol also will become, hopefully, our main supplier of liquefied natural gas, which is in Peru (Camisea).
We will sell this gas, hopefully the next few months. P. "Would highlight any difference between his relationship with the oil companies and those with the governments of Venezuela or Bolivia? R. I can not make an observation about what happens in Venezuela or Bolivia, but I say that the policies of President Rafael Correa is that whoever wants to invest in Ecuador is welcome, on terms favorable to the State.
Spain is doing well, such as China and Chile. Spain is a leader in investment after China, not just oil, in telephony, in infrastructure, hydropower, in the distribution of natural gas, Spain has excellent trade relations with Ecuador.
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