Ecuador, a nation bisected by the equator, possesses a distinct geographical makeup that includes a Pacific coastal plain, the rugged Andean highlands, the vast Amazonian lowlands, and the unique Galápagos Islands. The extraction and cultivation of these resources, ranging from subterranean fossil fuels to abundant biological assets, remain the primary drivers of Ecuador’s trade and national income. This economic reliance constantly balances the need for development with the imperative of environmental preservation across its diverse ecosystems.
Hydrocarbon and Fossil Fuel Reserves
Petroleum represents the single most important non-renewable resource for Ecuador’s national economy. The vast majority of the country’s oil reserves are concentrated in the Oriente Basin, located beneath the Amazon rainforest in the eastern part of the country. As a result, the oil industry’s infrastructure, including pipelines and drilling operations, is predominantly situated in this sensitive ecological region.
Ecuador holds substantial proven crude oil reserves, estimated at approximately 8.27 billion barrels as of 2022, making it one of the top oil reserve holders in South America. The state-owned company, Petroecuador, manages much of the sector, often partnering with foreign companies for extraction. Crude oil remains the country’s most valuable export, accounting for around 27% of its total export value in 2022, with major destinations including the United States and Panama.
The country’s oil production rate has historically fluctuated due to factors such as aging oil fields, pipeline disruptions, and environmental concerns. Despite being a crude oil exporter, Ecuador often imports refined petroleum products because it lacks sufficient domestic refining capacity to meet local demand. Associated natural gas reserves are less developed, primarily serving industrial use rather than being a major export commodity.
Mineral Deposits and Mining Activity
Beyond hydrocarbons, Ecuador is recognized for its valuable solid earth resources, particularly metallic minerals found within the Andean Mountain range. The country is situated on the Andean Copper Belt, a globally significant geological formation that hosts deposits of copper, gold, and silver. This geological potential has recently propelled the mining sector into a new phase of industrial development.
Large-scale mining operations began only recently, with the start-up of two flagship projects in the southern Andean region: the Mirador copper mine and the Fruta del Norte gold-silver mine. Fruta del Norte is considered one of the largest gold discoveries in recent history, while Mirador is the country’s first industrial-scale open-pit copper operation. Together, these projects have transformed Ecuador into a recognized producer of these metals, with mining exports reaching $3.3 billion in 2023.
The sector is characterized by a significant contrast between these modern, industrial operations and widespread artisanal and small-scale mining (ASM). While the large-scale projects are responsible for the substantial export revenue, illegal mining is a persistent challenge, often leading to environmental damage in sensitive areas. The government anticipates continued growth, with mining exports expected to potentially displace bananas as the third-largest export category.
Biodiversity and Renewable Biological Assets
Ecuador is celebrated as a mega-diverse country, an ecological status stemming from its four distinct geographical zones, including the Amazon rainforest and the Galápagos Islands. This biodiversity provides a vast array of renewable biological assets, which are commercially exploited through agriculture and aquaculture. The country is the world’s largest exporter of bananas, with exports valued at $4.77 billion in 2023, accounting for roughly 30% of the global market.
Aquaculture is another important sector, with Ecuador standing as the world’s leading exporter of shrimp, particularly the Litopenaeus vannamei species. This industry has grown substantially, with annual sales nearing $9 billion, making shrimp the country’s main non-oil export. Production is concentrated in the coastal provinces of Guayas, El Oro, and Manabí, utilizing advanced technological and sanitary standards.
Another high-value agricultural product is cacao, where Ecuador dominates the market for the premium “Fine Aroma” beans (Cacao Arriba). Although the country is the third-largest global producer of cacao by volume, it supplies over half of the world’s Fine Aroma cacao, highly sought after by gourmet chocolatiers. Forestry also contributes to the economy, with the country being a major global producer of Balsa wood, which is exported as kiln-dried blocks and veneers.
Water Resources and Hydropower Potential
Ecuador possesses abundant water resources due to the extensive network of rivers that originate in the high-altitude Andes Mountains. These rivers flow either westward to the Pacific Ocean or eastward into the Amazon River basin, providing a consistent supply of freshwater. This water is utilized for domestic consumption, supporting dense populations, and for intensive irrigation in the fertile coastal agricultural regions.
The most significant use of this hydrographic wealth is for the generation of electricity. Ecuador has one of the highest theoretical hydropower potentials per square kilometer globally, and it has heavily invested in developing this capacity. Hydroelectric power is now the dominant source of electricity in the country, with total installed hydro capacity reaching approximately 5,100 MW.
Large-scale projects, such as the 1,500 MW Coca Codo Sinclair plant, have been constructed to establish energy self-sufficiency and even allow for electricity export to neighboring nations. The country’s techno-economically feasible potential is estimated to be over 21,000 MW, with the majority located on the Amazonian slope. This focus on hydropower has dramatically reduced the reliance on fossil fuels for electricity generation, although the sector remains vulnerable to cyclical droughts and climate change effects.