Oil production drops following pipeline rupture as extent of environmental damage grows

Petroecuador and private oil companies are conducting a partial closure of Amazonian oil wells following the rupture and spill of the Trans-Ecuadorian Pipeline. As a result, according to the country’s Daily Oil and Gas Production Report, daily production has dropped by from 480,000 barrels a day to 350,000.

Environmental Ministry biologists are assessing the extent of oil spill contamination in the Esmeraldas Estuary Mangrove Wildlife Refuge.

On Tuesday, the Environmental Ministry and the Risk Management office said extent of the oil spill damage is “increasing by the day” as oil contamination extends further in rivers and tributaries, marshes and the ocean. On Tuesday afternoon, the ministry increased the extent of contaminated tributaries from 32 kilometers to 90, but said the full impact of the spill was reaching “far beyond” waterways.

According to the Energy Ministry, the economic losses to oil production will affect national revenue. “The major issue at the moment is that we are not sure when the pipeline can be rebuilt and restored to service,” a ministry statement said. “We must consider long-term stability of the pipeline which means we must rebuild to avoid vulnerability to landslides in the future. Our engineers are working on reconstruction plans.”

The statement added: “Our first objective, of course, is to help repair the damage caused by the rupture. The oil spill is affecting the lives and livelihoods of thousands of people in Esmeraldas Province.”

The Energy Ministry said some of the oil carried by the Trans-Ecuadorian line could be rerouted to three smaller pipelines connecting the Amazon oil fields in the coast. It said, however, it expects the current production deficit to grow.

In addition to production cuts at Petroecuador fields, Singapore-based Orion Energy and Chilean Enap Oil have reduced or shut down oil production. In total, the ministry says 142 oil wells have stopped pumping.

The Environmental Ministry reports it is conducting damage surveys but says it will be days before the full extent of the damage is known. Ministry biologists say contamination of the Esmeraldas Estuary Mangrove Wildlife Refuge, near the mouth of the Esmeraldas River is “extreme,” endangering populations of monkey, sloths, otters, ocelots in the refuge.