The Intersection of Economics and Politics in a Small OPEC Country: the Case of Ecuador, 1990 - March 2014

Today, crude oil remains a vital resource all around the world. This non-renewable resource powers countries worldwide. Besides serving as an energy source, crude oil is also the most important component for different world economies, especially in developing countries. Ecuador, a small member of the OPEC oil cartel, presents a case where its economy is oil dependent. A great percentage of the country¿s GDP and government¿s budget comes from oil revenues. Ecuador has always been a primary exporter of raw materials. In the last centuries, the country experienced three important economic booms: cacao, bananas, and, ultimately, crude oil. In this sense, the country has not been able to fully industrialize and begin to export manufactured goods, i.e., Ecuador suffers from the Dutch disease. The latter has deterred Ecuador from achieving broad-based economic development. Given crude oil¿s importance for the Ecuadorian economy, the government has always tried to influence the oil industry in search of profits and benefits. Therefore, this thesis, explores the question: how and to what extent have political interventions affected the oil industry in Ecuador from 1990 until March 2014? In general, this thesis establishes an economic history context during the last twenty-four years, attempting to research how political interventions have shaped Ecuador¿s oil industry and economy. In the analysis, it covers a period where political instability prevailed, until Rafael Correa became president. The thesis examines Ecuador¿s participation in OPEC, trying to find explanations as to why the country voluntarily left the organization in 1992, only to rejoin in 2007 when Correa rose to power. During the ¿Revolución Ciudadana¿ period, the thesis researches reforms to the Law of Hydrocarbons, variations in the relations with other nations, the controversy surrounding the Yasuní-ITT oil block, and the ¿Refinería del Pacífico¿ construction. The thesis is an Industrial Organization detailed case study that analyzes, updates, and evaluates the intersection of economics and politics in Ecuador¿s crude oil industry during the last 24 years. In this sense I have consulted past theses, newspaper articles, books, and other published data about the petroleum industry, both from a global and Ecuadorian perspective. In addition to published sources, I was able to interview sociologists, public figures, history and economics academics, and other experts, accessing unique unpublished data about Ecuador¿s oil industry. I made an effort to collect information that shows the private and public side of the industry, i.e., from government-related and independent sources. I attempted to remain as objective as possible to make conclusions about the appropriate Industrial Organization policy for Ecuador¿s oil industry, addressing the issue from an economic, social, political, and environmental point of view. I found how Ecuador¿s political instability caused public policy to fail, molding the conduct and market structure of the crude oil industry. Throughout history, developed nations have benefited from low oil prices, but things shifted since oil prices began to rise, which is more beneficial for the developing nations that actually possess and produce the raw material. Nevertheless, Ecuador, a victim of the Dutch disease due to its heavy reliance on crude oil as a primary product, has not achieved broad-based development.

Revision of a Liquid Fuel Airblast Atomizer and Installation of a Laser Extinction System for Measurement of Soot Produced During Liquid Fuel Combustion

Studying liquid fuel combustion is necessary to better design combustion systems. Through more efficient combustors and alternative fuels, it is possible to reduce greenhouse gases and harmful emissions. In particular, coal-derived and Fischer-Tropsch liquid fuels are of interest because, in addition to producing fewer emissions, they have the potential to drastically reduce the United States' dependence on foreign oil. Major academic research institutions like the Pennsylvania State University perform cutting-edge research in many areas of combustion. The Combustion Research Laboratory (CRL) at Bucknell University is striving to develop the necessary equipment to be capable of both independent and collaborative research efforts with Penn State and in the process, advance the CRL to the forefront of combustion studies. The focus of this thesis is to advance the capabilities of the Combustion Research Lab at Bucknell. Specifically, this was accomplished through a revision to a previously designed liquid fuel injector, and through the design and installation of a laser extinction system for the measurement of soot produced during combustion. The previous liquid fuel injector with a 0.005" hole did not behave as expected. Through spray testing the 0.005" injector with water, it was determined that experimental errors were made in the original pressure testing of the injector. Using data from the spray testing experiment, new theoretical hole sizes of the injector were calculated. New injectors with 0.007" and 0.0085" orifices were fabricated and subsequently tested to qualitatively validate their behavior. The injectors were installed in the combustion rig in the CRL and hot-fire tested with liquid heptane. The 0.0085" injector yielded a manageable fuel pressure and produced a broad flame. A laser extinction system was designed and installed in the CRL. This involved the fabrication of a number of custom-designed parts and the specification of laser extinction equipment for purchase. A standard operating procedure for the laser extinction system was developed to provide a consistent, safe method for measuring soot formation during combustion.