• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 7 mins Why Trump will win the wall fight
  • 4 hours Prospective Cause of Little Ice Age
  • 6 hours L.A. Mayor Ditches Gas Plant Plans
  • 6 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 min is climate change a hoax? $2 Trillion/year worth of programs intended to be handed out by politicians and bureaucrats?
  • 7 hours students walk out of school in protest of climate change
  • 8 hours Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 23 hours Ford In Big Trouble: Three Recalls In North America
  • 1 hour And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 23 hours Why Is Japan Not a Leader in Renewables?
  • 7 hours IT IS FINISHED. OPEC Victorious
Emerging ‘Quality’ Problem To Haunt Oil Markets

Emerging ‘Quality’ Problem To Haunt Oil Markets

The divergence between lighter and…

Hedge Funds Unsure Where Oil Prices Are Going

Hedge Funds Unsure Where Oil Prices Are Going

After a stellar January, oil…

Colombia Boosts Oil & Gas Investment

oil

Colombian oil companies plan between $4.5 billion and $4.9 billion in investments in 2018, increasing their budgets from this year, but still missing the mark on how much capital is needed to maintain an active fossil fuel industry, according to a new report by Reuters.

The new figures reflect a jump of roughly a third compared to last year’s figures, the Colombian Petroleum Association said on Wednesday.

Usually, twenty percent of government revenues come from the exploration, production, and taxation of petroleum products in the country, but three years of low oil prices have lowered that proportion to almost zero. Colombia’s oil and gas is difficult to extract, and trades at a significant discount to Brent. Ecopetrol and foreign field operators need prices to be higher than $50 to turn a profit.

Last year, Colombia was one of several South American countries selling oil below the cost of production.

“We value the process of recuperation of the industry, but it’s a recuperation that is lower than expected and lower than what the country needs to look toward the future,” ACP President Francisco Jose Lloreda told journalists.

“We look at 2018 with moderate optimism - there is interest from companies in making an important investment in production and exploration, that hopefully will be firmed up, but it’s short term. At medium and long term there is great uncertainty that we hope will dissipate,” Lloreda said.

Related: Brent Pipeline Closure Confuses Oil Markets

Colombia’s oil production has been falling for the last four years. It’s not just the 2014 price crash that pressured output: The country’s fields are depleting and new discoveries are hard to come by because of high production costs, security challenges, and opposition from the population.

Earlier this year, Colombia’s Comptroller General warned that the country could lose its energy independence by 2021 if this state of affairs continues. If production continues to fall, state-run Ecopetrol will find it hard to service its refineries, which have a combined daily capacity of 420,000 barrels.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News