NON RENEWABLES ENERGY

The role of non renewable energy in Ecuadors future supply

Felipe Saldaa1 Walter Dutn1 William Bernal 1

Abstract Ecuador has been oil-endowed. Ecuador is one of Latin Americas largest oil exporters. The oil sector accounts for about 50 percent of Ecuadors export earnings and its contribution to the GDP is around 20%. Despite being an oil exporter, Ecuador must still import refined petroleum products due to the lack of sufficient refining capacity to meet local demand. The hydrocarbons law, its reforms and contractual arrangements, have achieved - in Ecuador the discovery of new reserves, the development of new oil fields, the extraction of oil and natural gas for domestic consumption and for export. The oil reservations will not allow more than 30 years of exports, still assuming new discoveries. Moreover, in term of 15 years, Ecuador could stop to be a country of exportation of hydrocarbons. Therefore the structuring of a plan of energy development should be looked for that includes: electricity, efficiency and energy saving; education and formation of the users; alternative sources of energy; exploitation of local energy resources; decrease of the contamination; manpower use and engineering local, to meet the future energy requirements. Introduction The most important source in the economy of Ecuador is the export of oil and its products. From the discovery of the locations of the Amazon region, in 1967, Ecuador is one of Latin Americas largest oil exporters. This country occupies the sixth regional range at the moment for the production of oil and the third for the proven reserves.

Universidad Estatal de Cuenca. Maestra en Planificacin y Gestin Energtica. 2011

NON RENEWABLES ENERGY Certainly, the oil activity is a necessary source of revenues and a condition for the economic development of the countries of the Amazon region; however, Ecuador is subjected to a strong dependence of the oil. Concerning to the distribution of the GDP, the oil sector is of crucial importance. Its contribution to the GDP is around 20%, its contribution to the exports is of 54% and its participation in the general government budget accounts to 30%. However, the revenues coming from the petroleum have not been dedicated to increase the refinement capacity, causing that the Ecuador, despite being an oil exporter, it must still import refined petroleum products. The decrease of the oil reserves and the increment of the demand of oil products and natural gas, added to both social and environmental problems, outline the urgency of the development of alternatives to ensure the supply energy. 1. Nonrenewable energy resources of the Ecuador Ecuador is located in the northwest of South America. It is limited in the north with Colombia, in the south and the east with Peru and in the west with the Ocean Pacific. Ecuador has an extension of 256,370 km2, and it is divided in four regions: Costa, Sierra, Amazon and Galapagos. The energy sector is one of the most important inside the economy of the Ecuador; this is divided in two big groups: the subsector of nonrenewable natural resources that include the hydrocarbon and mining, and the electric subsector. The hydrocarbon field, represented by oil and gas, contributes more than 85% of the production of primary energy in Ecuador, and it is an important exporter of oil of the region.

NON RENEWABLES ENERGY 1.1. Coal Coal is not used in Ecuador. The coal that we use to cook comes from the burnt wood. The coal reserves, mostly lignite and sub-bituminous coal are considered in 26 million metric tons (Napolen Saltos, Lola Vzquez, 2009). In the future this energy type won't be part of the country energy resource. 1.2. Nuclear Energy In the Ecuador there are not nuclear plants of generation neither there will be them in the future. 1.3. Mining resources In the mining resources the most important is the gold, with an annual production of 4.8 million grams in the year 2003, located mainly in the south region of the country, with Portovelo and Nambija like main locations. The gold represents the second line in mineral exploitation after the petroleum. (Napolen Saltos, Lola Vzquez, 2009). Also, important reserves of copper have been discovered. 2. Oil The petroleum is the main energy source in Ecuador. 2.1. History of the oil extraction in Ecuador The first oil well was perforated in the Costa region in 1911. In 1967 Texaco it perforated the first commercial well in the Amazonia. In the next years, the biggest oil infrastructures were the Pipeline System (Sistema de Oleoducto Transecuatoriano SOTE) and the Coca road. In 1971 Ecuador joined the Organization of the Petroleum Exporting Countries (OPEC). Indeed, in June of 1972 the State Ecuadorian Oil Company (Corporacin Estatal Petrolera Ecuatoriana CEPE) was created (Montesdeoca).

NON RENEWABLES ENERGY In September of 1989 PETROECUADOR was conformed in substitution of CEPE. It has three filial: PETROPRODUCCION, PETROINDUSTRIAL y PETROCOMERCIAL. Starting from 1982, due to pressures of the multilateral organisms and of the own companies, the oil politics has been overturned toward the opening to the transnational ones. In 1993, for decision of the Government of Sixto Durn Balln, the Ecuador retired of the OPEC, being rejoined in the year 2007. For ends of the 2002, it finishes building the Pipeline of Heavy Oil (Oleoducto de Crudos Pesados OCP) like part of the strategy of expansion of the oil boundary. From 2003 the government announces the tenth beat oil company for the concession of areas in the territories of Napo, Pastaza and Zamora Chinchipe, besides the continuation of the project ITT (Ishpingo, Tambococha, and Tiputini) that is located in the Yasun National Park and the Fauna Reservation of Cuyabeno. To beginnings of the 2007 the new government announces the construction of a new refinery in the county of Manab with a capacity of refinement of 300.000 daily barrels. In this year the exchange also begins with Venezuela (around 1.5-1.6 barrels of oil from Ecuador for 1 barrel of oil products from Venezuela). In this same year the oil contracts were renegotiated with the Hispanic - Argentina Repsol, the French Perenco, the Brazilian Petrobras, the Chinese Andes Petroleum and the company of american capital settled down in Panama City Oriente. The exploitation has been characterized by the investment lack in the growth of Petroecuador, situation that constitutes one of the fundamental reasons that caused the crisis and the deterioration in the oil production of the state area. The last reformation to the Law of Hydrocarbons was introduced in July of 2010, in effect in this reformation three important aspects of the industry were modified substantially:

NON RENEWABLES ENERGY a) sovereignty and hydrocarbon political, b) institutional organization of the State in hydrocarbons, c) contractual modality and the government revenues. It is necessary to emphasize that the Ecuadorian Government's goal in the reformation is recovering the property of the hydrocarbon sector, as well as indicating the preference for the state investment in the exploration and exploitation of this resource (J. Villarreal, J. Snchez, 2011). 2.2. Oil production During this first decade of the new hydrocarbons law application, Ecuador generated an annual average of 72 million barrels, and major oil revenues to an average WTI price of US$ 19.85/barrel in the international market (Ortiz, Year 2 - No. 2 - October 2010).

Figure 1: 1973 1982 Ecuador National Oil Production (Graphic Data in Thousands Barrels) (Ortiz, Year 2 - No. 2 - October 2010).

In the decade between 1984 and 1995 an increase takes place in the production in spite of the destruction of a part of the pipeline for an earthquake in 1987. The price average in this decade is of US$ 22.42/barrel.

NON RENEWABLES ENERGY

Figure 2: 1984 1995 Ecuador National Oil Production (Graphic Data in Thousands Barrels) (Ortiz, Year 2 - No. 2 - October 2010).

The production averages yearly of oil of the decade 1993 - 2002 had arrived to 139 million barrels.

Figure 3: 1993 2002 Ecuador National Oil Production (Graphic Data in Thousands Barrels) (Ortiz, Year 2 - No. 2 - October 2010).

The oil production in Ecuador between 2003 and 2008 has a notorious influence of the pipeline of heavy oil, OCP, from October of 2003. During this period, again the production of petroleum is increased to reach an annual average of 181.99 million barrels.

NON RENEWABLES ENERGY

Figure 4: 2003 2008 Ecuador National Oil Production (Graphic Data in Thousands Barrels) (Ortiz, Year 2 - No. 2 - October 2010).

At the moment a total of 93 blocks and fields exist in production in Ecuador distributed in different areas managed by the public companies and private operators. Petroecuador

executes exploration works, production, development and reinjection in 5 blocks: Cuyabeno, Liberator, Shushufindi, Auca and Lago Agrio that are in the Amazon region of the country. In these areas, Petroecuador operated a total of 27 producing fields between January and July of 2010. On the other hand, Petroamazonas operated 12 fields between January and July of 2010. Additionally, we find the following private companies that operate in Ecuador (operated fields): Repsol-YPF (8), Perenco (6), Andes Petroleum (9) and Petroriental (5), among others. Starting from the 2004 the production of oil in Ecuador showed an increase until arriving at its maximum level in 2006, 536 thousands of daily barrels of oil. However, after 2007 the production diminished up to 486 thousands of daily barrels of oil in 2010.

NON RENEWABLES ENERGY

Figure 5: Total oil production (public companies and private operators) (Graphic Data in Thousands Barrels). Source: Petroecuador. The oil production during the year 2010 had risen and fallen, concluding the year with an upward production of approximately 140,000 daily barrels on the part of the state company Petroecuador and a similar figure on the part of Petroamazonas. The remaining value to arrive to the annual average of 486,000 daily barrels of oil produced came from the activity of private operators, sensibly altered by the process of renegotiation of oil contracts that concluded in January of 2011.

Figure 6: Paticipation in the production in 2010 of each one of the companies that operate in Ecuador. (J. Villarreal, J. Snchez, 2011).

NON RENEWABLES ENERGY For the year 2011 51 million barrels of oil will be incorporated in proven reservations sustained with projects of seismic in execution, processing and interpretation. 2.3. Refining At present, Ecuador has a capacity of oil processing of 176,000 barrels per day. The most important products are the gasoline and the diesel, fuels of majority use in the transport. The sector of hydrocarbons contributes with 71% of the national requirement of energy, being distributed the remaining percentage among sources of the biomass and hydroelectric. Ecuador has three oil refineries: (Napolen Saltos, Lola Vzquez, 2009): Esmeraldas, with a capacity of 110,000 barrels of oil per day. La Libertad, with a capacity of 45,000 barrels of oil per day. Shushufindi, with a capacity of 20,000 barrels of oil per day. It is integrated by the plant of gas and the Amazonas refinery.

Figure 7: Ecuador oil refineries. (J. Villarreal, J. Snchez, 2011)

NON RENEWABLES ENERGY The national production of fuels in the refineries is insufficient to supply the total demand. Despite its status as a crude oil exporter, Ecuador is a net importer of refined oil products. In general, Ecuador exports heavy refined products, like fuel oil, and imports lighter products, such as gasoline, diesel, and liquefied petroleum gas (LPG) that for the period 98-2007 (to September), they overcame 166 million barrels, for a total cost for the country of US$ 8,167 million. It can be understood if it is considered that the Ecuadorian foreign debt for July of the 2007 was of US $17,319 million; that is to say that the country in a decade of import of fuels spent an equivalent to 50% of its foreign debt. (Lpez, 2009). 2.4. Pipelines 2.4.1. Sistema del oleoducto transecuatoriano (SOTE) It is the main system of transport of the oil in the Ecuador. It crosses the country from Lago Agrio until the port of Emeralds, with a longitude of 503 km and a diameter of 55 cm. During 36 years of their operation it has received and transported 3,600 million barrels in uninterrupted form. 2.4.2. Oleoducto transandino (OTA) It is property of Colombia, but it transports petroleum of property of Petroecuador from Lago Agrio (in Ecuador) until Orito (in Colombia), from there it is transported to the port of Tumaco in Colombia, then for coastal traffic to be taken until la Pennsula de Santa Elena in Ecuador. It has an extension of 26 km and it transports between 45 and 60 thousand barrels per day of light oil to the refinery La Libertad. 2.4.3. Oleoducto de crudos pesados (OCP) It has a longitude of 485 km, from Nueva Loja until Esmeraldas, following a parallel route to the SOTE. Also, it is buried in 99%. The diameters are of 24, 32, 34 and 36, depending on the land. Its capacity of transport is of 450,000 daily barrels, but it transports a lot less than its capacity (150,000 barrels) (OCP ECUADOR S.A.).

NON RENEWABLES ENERGY

Figure 8: Pipelines, refineries and terminals (red circles) (J. Villarreal, J. Snchez, 2011).

2.5. Oil prices The price of the barrel of petroleum had a considerable increment when being located in July of 2008 in US$ 145.29, to descend in August from the same year to US$ 126.76. Then it suffered a fall to US$ 30 in April of 2009. It recovered to US$ 71.33 at June 10 2009. (Napolen Saltos, Lola Vzquez, 2009). 2.6. Refined oil products Emeralds: gasoline, diesel, liquefied gas of petroleum, jet fuel, fuel oil 4 and 6, asphalts AP-3 and RC-2, butane, propane and sulfur. La Libertad: gasoline base, diesel 1 and 2, jet fuel, Rubber Solvent, Mineral Turpentine (for elaboration of paintings), Spray Oil (fumigation of banana), Absorber Oil (chemical) and Fuel Oil for the electric sector and ships. Shushufindi: liquefied gas of petroleum, extra gasoline, diesel 1, jet fuel, diesel 2, residual.

NON RENEWABLES ENERGY 2.7. Oil reserves The oil reserves of Ecuador have reached the dome of the bell of Hubbert, that is they have been exploited the half or maybe more than the existent reservations in the country. The reservations proven remainders at the present time are something more than 6.5 thousands of millions of barrels.

Oil provedreserves
7,000,000,000 6,000,000,000 5,000,000,000 Barrels 4,000,000,000 3,000,000,000 2,000,000,000 1,000,000,000 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year

Figure 9: Ecuador oil proved reserves (January 2010) (IndexMundi).

2.8. Social and environmental conflicts Ecuador has minerals and hydro-carbons exploited and in exploitation that have taken it at levels of social and environmental conflicts of difficult solution, and in the last decade risen to political category of first order, as the case of the petroleum and the mining in upward scale (Narvaez, 2009). The Amazon region faces the threat of the climatic change on the base of characteristic environmental own, because this constitutes one of the areas with bigger biodiversity of the planet. Most of countries that compose this region present very high levels of vulnerability in front of phenomena climatic able to unchain disasters that commit their development process.

NON RENEWABLES ENERGY Both the proven and probable reserves of oil in the ITT are calculated in 412 and 920 million barrels, respectively, that which represents more than 20% of the total reserves of the Ecuador. The direct and indirect impacts of the extraction of the petroleum could include, among others: degradation of the forest ecosystems, spill of toxic waters, colonization after the construction of roads, illegal pruning, hunt and dysfunction of the tribal isolation (Silvestrum VoF, 2009). 2.9. Hydrocarbons law In the Constitution of 2008 the paper of the State was redefined in the exploitation of the nonrenewable natural resources. Mainly in the articles 313 at 318 the strategic sectors, services and public corporations are approached. (Acosta, febrero-marzo del 2011). With the government of Rafael Correa the constitutional disposition is claimed (Chapter V: Articles 313 at the 318) relative to that the State has the command, the obligation to explode and to administer the resources (strategic) oil guaranteeing the equal redistribution of the rent. It insists in the oil normative reformation and in that the government enterprise should be negotiated with exclusively technical, economic-financial approaches and delimiting the intermediation of the interested groups in obtaining big utilities for its investments. (Narvaez, 2009). 3. Natural Gas The use of natural gas in Ecuador was born following the discovery of this fuel in the peninsula of Santa Elena (1957); to exhausted this field, most projects natural gas extraction in the country were on hold, while in fields oil as Shushufindi, Aguarico and Libertador, the natural gas was considered a waste of production. Ecuador is a relatively small producer of natural gas into the market, currently in the production stations Petroecuador has been keen interest in the associated gas by using it as fuel in turbines for power generation, for maintenance of injection pressure, as motive fluid in artificial lift systems, among other uses.

NON RENEWABLES ENERGY Consumption of natural gas for electricity production and for use in industrial processes has increased dramatically in recent years. 3.1. Natural gas reserves Ecuador has reserves that currently are not adequately exploited. Ecuador has a production capacity of magnitudes less gas and not an exporter of natural gas, however, the idea of diversifying the energy matrix by the Government to generated a series of exploration projects and exploration of this combustible.

Natural gas - proved reserves

120,000,000,000 100,000,000,000 80,000,000,000 60,000,000,000 40,000,000,000 20,000,000,000 0 2003 2004 2005 2006 2007 2008 2009 Year Figure 10. Proven reserves of natural gas (IndexMundi). Cubic meters hydrocarbon. 4. The change in the energy matrix of Ecuador The situation of the energy matrix in our country is not the most appropriate, due to our high dependence on fossil fuels for locomotion, power generation, heating and other purposes, the smuggling of combustible due to the subsidies that make them attractive to the people of

Ecuador does not have a definite market for the exploitation of these resources, nor account with the neither optimal technology nor industrialization to create a market based on the use of natural gas. The lack of this combustible initiative from the authorities in power, along with inefficient energy policies and regulations to provoked stagnation in the use of this

NON RENEWABLES ENERGY border regions of neighbouring countries, importing most of the petroleum derivatives and almost no export of the same, but only of raw material (crude oil). This trend will continue unless corrective measures are taken, starting with the construction of hydroelectric power plants and renewable, the creation of a culture of energy efficiency and introducing alternative methods of locomotion.

Figure 11. Ecuador's energy matrix. Current situation. (MEER - ECUADOR, 2008)

The figure 11 shows the national energy matrix, which takes in account supply and demand of primary energy produced annually in the country. It forecasts growth of energy imports and a decline in exports due to the depletion of fossil fuel reserves and growing domestic demand, if no corrective measures are taken to reduce dependence on imported derivatives.

NON RENEWABLES ENERGY

Figure 12. Prospect of change of the energy mix by 2020. (MEER - ECUADOR, 2008)

To obtain a change in the energy matrix the State should allocate sufficient resources for oil exploration and exploitation with the objective of reduce the share of oil in energy supply and increasing the share of renewable energies. 5. The role of renewable energies in Ecuador 5.1. Oil With the current rate of exploitation, of 470 thousand barrels per day, we have horizon oil would not reach age 30. If we consider that the Yasuni-ITT Initiative involves leaving some 900 million barrels of oil underground, the oil extraction horizon is smaller. (Acosta, febreromarzo del 2011). Ecuador extracts oil, oil exports and imports petroleum derivatives; they do not have enough refining capacity. These expensive derivatives like diesel are burned to generate electricity in thermal plants pollutants. Additionally, we must recognize what it means to sell such derivatives with huge subsidies, which benefit wealthier groups of the population and is also leaking across borders. (Acosta, febrero-marzo del 2011).

NON RENEWABLES ENERGY In the National Budget such imports are estimated in least U.S. $ 3,700 million for 2011. By 2010 subsidies were estimated at 3 billion dollars, for 2011 could approach 4,000 million. The amount of contraband is estimated to be approximately 800 million dollars. With the approval of the new Constitution in 2008 and the reform that was carried to the Hydrocarbons Law, the Ecuadorian government poses a different oil politics which was applied in previous governments. The main points that focus on the new oil politics are: 1. Return the steering role of the State Oil. 2. Regain sovereignty over natural resources. 3. New model of management, regulation and control of the sector. 4. Institutional strengthening. 5. State investment and attracting private investment. 6. Infrastructure modernization and automation industry. 7. Improve efficiency in supply and refining. 8. Tools to implement real-time control of all phases of the industry. 9. Sovereign sustainable development and an efficient use of non-renewable natural resources and socially responsible. 10. Implement the use of new technologies. As national oil production, it emphasizes the strengthening of public companies, as EP Petroamazonas and EP Petroecuador, so that the Ecuadorian State is the lead manager of the operation of the oil industry and there is evidence of an efficient administration sector. During the second half of 2010 took forward the process of renegotiation of oil contracts, as mandated by the Law Reformatory the Hydrocarbon Law, aimed at eliminating the contract of participation and switch to the delivery of services. Several companies accepted the new model and negotiated a fee for their services, while other companies decided to terminate their contracts.

NON RENEWABLES ENERGY Table 1. Negotiation of oil contracts. (J. Villarreal, J. Snchez, 2011)

Most field operations and production blocks to been assumed by public companies in Ecuador. Non-operating fields will bid for the operation of third-party companies during the second half of 2011. Another issue of vital importance in the oil sector is the ITT Yasuni. The Ecuadorian government has proposed to maintain underground Yasuni reserves, provided they have the support of the international community. The estimated number of barrels that will be left in the ground is 980 million, and whose value must be provided by 50% by the international community, an amount estimated at approximately USD 3.500 million. President Rafael Correa said that if by December 2011 does not raise that amount, consider alternatives to conservation, and may even block the exploitation of this oil. Therefore, business opportunities focus in the following points (J. Villarreal, J. Snchez, 2011): 1. Provision of goods and services industry to the Ecuadorian state-owned enterprises. There are even financing options for foreign companies operating in Ecuador.

NON RENEWABLES ENERGY 2. Generation of strategic alliances with the Ecuadorian State companies providing comprehensive services for operating in certain areas or blocks. 3. Provide services to private operators in Ecuador, who have committed substantial amounts of investment over the next five years, because of the contracts were renegotiated a few months ago. Given the output of some oil companies to avoid the collapse of the industry for the drop in investment, the government of Ecuador will spend about five billion dollars over the next five years in the area. The State plans to have more resources, allowing you to recover lost investment to stabilize the industry that brings more foreign currency and also use the surplus to the neglected sectors, such as health, education and indigenous peoples living in isolation. In addition, with the renegotiation of oil contracts sets the stage for similar action with multinational mining companies in early 2011. (Osuna) The Petroecuador production target for 2011 is 181 million barrels annually, for which the company will contribute to increased production from their fields, to 51 million in the same period. Petroecuador, which drew 61% of the 481,000 barrels per day (b / d) which produced the country between January and October 2010, will have a budget of 3,974 million dollars in 2011. The production is rising, there has been exploration and drilling, which gave successful results since 2010, which ended with an average production of 144,000 barrels per day and an average of 142.000, when the goal was 136,000. Within the heading of investment, spending most representative projects will be in oil exploration and production where it plans to put a total of 549.7 million dollars. In refining programs, by contrast, spent $ 340 million in them are considered integral rehabilitation Esmeraldas refinery and building a new refinery in Manta, this will allocate a total of 391.6 million.

NON RENEWABLES ENERGY Companies will work in a process called secondary recovery or enhanced recovery, which involves activities such as injecting carbon dioxide or water vapour in a reservoir, to facilitate the extraction of oil. Is expected to increase field production by 7% to 15%. Brazil's Petrobras, China's CNPC, the U.S. subsidiary Nobel Energy and the consortium Developer Ecuadorian Canada Grande left the country and became their fields operated by Petroecuador and Petroamazonas public companies. In the country continue to operate the Spanish Repsol-YPF, the Chinese consortium Andes Petroleum and PetroOriental, Enap Chilean state and the Italian Eni. (Pacheco, 2011). Petroecuador and PDVSA of Venezuela have agreed to build the refinery in the Pacific. The complex will be operational in about five years and when it does become the largest refining plant in Ecuador with a capacity to process 300,000 barrels of crude oil and produce gasoline, naphtha, jet fuel, oils, lubricants, reducing the 3 billion dollars spent each year in fuel imports (Napolen Saltos, Lola Vzquez, 2009). 5.2. Natural Gas For Ecuador, investment in alternative energy projects, such as natural gas extraction, is not only an option to remove the high dependence of the energy mix with oil, but also be a possible way to reduce gas imports (that October 2010 represented a cost of $ 0.10 million), avoiding to burn and will generate a new source of revenue for the country. Today is one of the new options in the global energy market and is expected to mean the country would save U.S. $ 35 million a year. The natural gas is likely of be used mainly by the following potential markets: Electricity generation. The industry sector, to replace fuel.

NON RENEWABLES ENERGY The electricity sector can be regarded as the most future natural gas use (PACIFIC CREDIT RATING, 2011). 6. Conclusions Oil is a resource that has become the main source of funding of the country's economy. When compared in relation to PIB, it skirts around 23 to 24%, almost a quarter of PIB. In recent years the country's economy is sustained by oil. In terms of exports, over 50% (amounts for 2010) from oil exports and in terms of financing the general budget of the State, we are talking about in recent years, around 35%. The oil reserves will allow no more than 30 years of exports, even taking on new discoveries.

Figure 13. The future of oil in Ecuador.(Larrea)

More importantly, in about 15 years, Ecuador might not be an exporter of oil. On the one hand stocks are finite. And secondly, the growth in demand for petroleum products increased steadily. That said the timely construction of a post-oil economy, even post-extractive is an urgent necessity. (Acosta, febrero-marzo del 2011). Although the changes actually taking place, Ecuador will continue for a longer, depending on oil as a mainstream energy source. (MEER - ECUADOR, 2008)

NON RENEWABLES ENERGY Ecuador, despite being an oil producer, has seen an improvement in their situation due to lack of design and implementation of a long-term energy policies. Call for structuring energy development plan that includes: electricity, energy efficiency and savings, education and training of users, alternative energy sources, and exploitation of local energy resources, reducing pollution, use of labour and local engineering, among others. We can say that under current conditions, the energy sector of Ecuador does not guarantee self-sufficiency to meet demand growing each year, nor ensures sustainability in economic, environmental or social. The new Constitution affirms the strategic nature of energy as a resource of the state, which gains the private sector may not exceed the public sector. With this concept, it recovers the role of the State in promoting equity in access to energy. The rules are in the process of adaptation to the new constitutional framework, with the assistance of specialized agencies such as the Ministry for Coordination of strategic sectors, the Ministry of Finance, the Ministry of Planning and Strategic Development, SENPLADES, the Ministry of Electricity and Renewable Energy and the National Electrification CONELEC. Under the approach of generating clean energy, the Ministry of Non-Renewable Natural Resources looking for turn natural gas in a means of obtaining carbon credit certificates, stating that the efficient use of oil-associated gas in the Amazon region prevents damage environment thanks to its non-burning, and it is not wasted energy source that can be used to generate electricity and reduce diesel consumption. The improvement in living conditions of Ecuadorians may depend in the future, sustainable alternatives. What remains of oil, in particular, should serve to build the bases that allow us to transit to another form of economy. The development is not achieved simply based on the extraction of natural resources, much less the Good Life or Sumak Kawsay. Let us keep in mind that it is

NON RENEWABLES ENERGY necessary to generate wealth on the basis of human effort. We simply cannot survive with the income of Nature, which, moreover, with this foolish extractive, we are taking towards collapse.(Acosta, febrero-marzo del 2011).

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NON RENEWABLES ENERGY http://contrastesinvestigacion.wordpress.com/2009/02/07/situacion-y-perspectivas-delpetroleo-en-el-ecuador/ OCP ECUADOR S.A. (s.f.). Recuperado el Abril de 2011, de OCP ECUADOR S.A.: http://ocpecuador.com/ Osuna, M. S. (s.f.). Ecuador: el desafo de nacionalizar el petrleo. Recuperado el 11 de Abril de 2011, de Observador Global: http://observadorglobal.com/ecuador-el-desafio-denacionalizar-el-petroleo-n13147.html PACIFIC CREDIT RATING. (2011). PACIFIC CREDIT RATING. Recuperado el 2011, de PACIFIC CREDIT RATING: http://www.ratingspcr.com