• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 1 hour Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 6 hours Shale profitability
  • 23 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 52 mins Europe: The Cracks Are Beginning To Show
  • 11 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 13 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 2 hours Hong Kong protesters appeal to Trump for support.
  • 44 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 18 hours Let's shut down dissent like The Conversation in Australia
  • 21 hours New designs will reduce transport fuels consumption
  • 12 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 18 hours A little something for all you Offshore swabbies
  • 4 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 22 hours Democrats and Gun Views
  • 9 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

As Prices Tank, This Natural Gas Exporter Became A Net Importer

The natural gas market is growing interesting. Not in North America where prices continue to languish — but internationally, where the fall in oil has caused a knock-on drop in E&P valuations even as many gas markets are getting tighter.

News this week suggests that’s the case in northern South America. Where one nation officially announced it will become an importer of natural gas for the first time ever.

That’s Colombia. Where state oil company Ecopetrol told local press Monday that the firm has struck a groundbreaking deal to import natgas from Venezuela starting in January. Related: Weak Demand From Major Consumers Puts A Cap On Oil Price Growth

As reported by Platts, Ecopetrol’s head Juan Carlos Echeverry told reporters that Colombia will start importing 39 million cubic feet per day of natural gas from Venezuela in the new year.

The move is aimed at shoring up domestic natgas demand. Which is rising in Colombia due to increased use of gas for power generation, as hydroelectric output across the country has been falling.

At the same time, Ecopetrol’s gas production has stagnated. With output dropping 6% in the third quarter as compared the same period of 2014, to 128,900 boe/d. Related: Big Oil: Which Are The Top 10 Biggest Oil Companies?

The move toward imports in Colombia is important for a number reasons.

First because it shows a shift in market dynamics in this part of South America. Where Colombia used to be an important exporter — but is now flipping to being a net consumer.

That’s happening at the same time as other big markets like Brazil are also struggling with hydropower generation. And Pacific nations like Chile are rapidly increasing gas use via sources like liquefied natural gas. Related: U.S Drillers’ Operating Loses Could Surge In 2016

There are potential exporters here — Venezuela to some degree, and also countries like Bolivia and Ecuador. Supply in these places could get tighter quickly.

It will now be critical to watch natural gas prices in Colombia — which could drive up power costs in the country (for industries like mining), but could also provide an unexpected opportunity for E&Ps here.

Here’s to reversing the flow

By Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play