Image by Zbynek Burival via Unsplash
Ecuador’s oil sector is facing significant losses due to increasing fuel thefts by criminal groups, with organized crime syndicates tapping into state-owned pipelines to supply their drug trafficking activities, according to Reuters. The illegal fuel siphoning is a major drain on the country’s oil industry, costing millions in lost revenue, and is contributing to the growing violence surrounding Ecuador’s oil fields.
Fuel, including gasoline and diesel, is stolen by criminals who tap into Petroecuador’s pipelines. The stolen fuel is then used to aid the production and transportation of cocaine. These criminal groups are not only taking fuel but also engaging in violent acts against oil field workers, including extortion, physical assaults, and theft of equipment such as copper cables.
Petroecuador reported that fuel thefts have resulted in cumulative losses of $215.1 million from 2022 to October 2024. The number of illegal taps on the state pipelines has surged from 32 in 2022 to 773 by October 2024, highlighting the growing scale of the issue. While the stolen fuel represents a small fraction of the $7.5 billion in revenue generated by Petroecuador, which accounts for nearly 25% of the national budget, the long-term economic impact and the boost it gives to drug cartels are deeply concerning.
Though Ecuadorian authorities have not disclosed overall earnings from drug trafficking in the country, the criminal activity continues to escalate. The nation is home to 1,655 kilometers (1,030 miles) of fuel pipelines, stretching along the Pacific coastline and through the remote Amazon region. These areas are also known for local resistance to the oil industry.
During a visit to the Esmeraldas-Santo Domingo pipeline in late November, observers identified at least nine illegal taps within just 25 meters of the pipeline. This is one of 11 such pipelines in Ecuador. As of October 2024, at least 136 illegal taps have been discovered on this particular pipeline, which covers 166 kilometers (103 miles), leading to losses of around $17 million from this section alone.
The process of detecting and removing these homemade taps is costly and time-consuming, and the taps present serious risks of fuel spills. The increase in pipeline attacks underscores the challenges faced by President Daniel Noboa, who pledged to improve security during his 2023 election campaign and is seeking re-election in February 2025.
The Noboa administration has responded by bolstering security at oil installations. Military patrols, including nighttime operations, have been increased, and drones are being used to monitor fuel pipelines. Petroecuador has confirmed the deployment of these security measures and is exploring new technologies to detect illegal taps more efficiently. Additionally, the government is considering the creation of a joint command center to enhance coordination between the police and other agencies to respond more quickly to pipeline breaches.