Ecuador’s oil industry is confronting a severe downturn, with official data revealing a significant 8.5% annual decline in crude production for 2025. Total output amounted to 127.4 million barrels, averaging just 349,167 barrels per day. This production slump has been compounded by a parallel decrease in domestic refining capacity, forcing the nation to dramatically increase its reliance on imported fuels. Imports surged by 16.8% year-on-year to 74.3 million barrels, a dependency that analysts warn undermines national energy security and places strain on the economy. The situation is further exacerbated by a drastic 72.97% contraction in public sector investment, with budget execution plummeting to $485.4 million compared to the previous year. The human cost of this crisis has also been severe, with 1,379 workers dismissed, constituting a 13.7% reduction in the industry’s workforce. Adding to these operational and financial concerns, serious legal questions have been raised regarding contracts signed by OCP Ecuador S.A., the state-managed entity overseeing the Heavy Crude Oil Pipeline since its transfer to public ownership on December 1, 2024. Industry groups are now issuing urgent calls for heightened scrutiny from both authorities and the public into the management of the country’s vital energy resources, cautioning that the current trajectory threatens to inflict irreversible damage upon the national oil industry.