Statements on Ecuador's oil

Abstract

The economy of twentieth-century world societies recognized oil as their main source of energy. In the 21st century, the now-global economy has identified important changes in the oil industry, from new possibilities of petroleum depletion to unexpected price fluctuations. Social scientists have been studying the social impacts of these processes, concluding that, despite climate change, oil may remain relevant in the capitalist economy in the foreseeable future. Then, despite the decline of foreign exchange from oil exploration in Latin America, left-wing governments in recent decades have still chosen to adopt this energy matrix as the main source of financing for their social development programs. The great Latin American leftist bet on the extractivist industry to reduce social inequalities is analyzed here through the case of Ecuador, which after a period of oil bonanza (2006-2013) failed the expectations of breaking with the structures that hold it back from development.