Insider Secrets

Insider Secrets

Learn how the PROs are making money from the oil and energy market.

Loading, please wait

COLOMBIA: Two New Oil Discoveries and Investor Incentives in the Works

By
Posted on Fri, 05 April 2013 18:10 | 0

Bottom Line: The Colombian president unveils plans to eliminate the 8.9% tax on natural gas and other potential initiatives such as free-market gas pricing that will increase investor optimism at a time when shares in state-run Ecopetrol are sliding despite two new oil discoveries.

Analysis:  Riding the optimism over two new oil discoveries at wells in Meta that could produce over 800 barrels per day, the Colombian government  appears to be earnestly pursuing an improved investment climate to lure in more foreign oil and gas explorers and producers. Last week, state-run Ecopetrol announced that initial tests in its Meta wells showed production potential of 202 bpd of heavy crude in one and 630 bpd in another. Despite the finds, Ecopetrol shares continue to slide, in part due to sustained attacks on its infrastructure by rebels.

Over the past two weeks, Colombian President Juan Manuel Santos has met with business leaders to discuss improving the country’s economic competitiveness. Those executives suggested reducing taxes on energy, and Santos appears to be heeding their advice. On 20 March, Santos unveiled plans to eliminate the 8.9% tax on natural gas as quickly as possible.

At the same time, Federico Renjifo, Minister of Mining and Energy, has discussed a number of other new energy initiatives, including the construction of a liquefied natural gas (LNG) plant on the Caribbean coast and allowing the price of gas to track with market demand…

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

Special Reports

8 Mega Trends

8 Mega Trends

By Oil & Energy Insider Analysts

8 OIL & GAS INDUSTRY MEGA-TRENDS AND HOW TO PROFIT FROM THEM
Here's what our 400 global energy assets are telling us to be prepared for right now...

LNG Technology

LNG Technology

By Oil & Energy Insider Analysts

THE "FLOATING REFINERY" STOCK THAT COULD FUND YOUR RETIREMENT
This company's incredible tanker technology could eliminate many of the world's offshore pipelines...

Subsea Production

Subsea Production

By Oil & Energy Insider Analysts

THE END OF OFFSHORE DRILLING?
This disruptive market will grow 84% to 270% over the next five years: Discover the 6 equipment suppliers set to profit.

Related Articles


Martin tiller