Headlines August 24th through 30th
There is a lot to know about oil and gas, its future,current situation, and here’s is where you will find the most valuable news.
Minimal guerrilla activity
Guerrilla-initiated incidents by both groups stayed down this week and the Armed Forces also cut back their activities, at least in oil-and-gas areas. As a result, total incidents fell to 22.
MinMinas approves Agreement 03
The Ministry of Mines and Energy (MinMinas) has approved three more measures to promote exploration and production and confront the fall in oil prices. The Agreement 03 is part of its “PIPE” stimulus for the industry.
Caño Limón Coveñas hit hard by past attacks
Even though the Farc has backed off and not attacked any pipelines since the start of its July 20 truce, the Coveñas/Caño Limón Pipeline (CCL) has suffered in the month of August due to the attacks over the last two months.
USO says monitoring Reficar
The USO says it has been observing the Cartagena Refinery (Reficar) project to make sure it has been meeting quality and labor standards as the process to finish the plant winds down.
Without oil there will be no peace
‘The Mad Economist’ is the nom-de-plume of Camilo Vega Barbosa, Director of the economic blog El Mal Economista (EME). (See his coordinates at the end of the article.) We thought his observations were spot-on for a topic we find concerning: paying the bill for the post-conflict when low-oil prices and lack of government support have pushed government oil revenues into a tailspin.
(Almost) everything peaked in 2012
Clients ask us for quick graphs from our statistical databases for their presentations or other studies. (You can too!) Having done a number of these lately, it struck our Analyst that the peaks all occurred at the same time (roughly) 2012. But sometimes our eyes and minds can play tricks on us so we decided to index a number of key indicators for the industry and pu them all on the same graph. We started in 2006 because we like to start looking at things before the economic crisis which started in about 2007 and to span the commodity price spike in 2008.
By 2017 production could fall to 750,000bd
Considering a fall of 70% and 80% in seismic work and exploratory wells and declining mature fields, Colombia’s daily production could fall as low as 750,000bd in just two years, says the executive director of Colombian Association of Oil Engineers (ACIPET), Carlos Leal.
Barrancabermeja sees improved results despite problems
Record production from nearby fields, along with optimized contracts, processes and operations have helped the Barrancabermeja Refinery report operational profits, despite facing a rocky labor scenario within.
Transportation costs hurting competivness
Issues like the lack of adequate roads and poor advancement of infrastructure safety mechanisms have caused some to consider Colombia the most expensive country for oil operations in the region.
Peace Process: Debate continues over agreements, “Congresito”
Havana chief negotiator Humberto de la Calle announced some of the options being considered for the development of agreements with the Farc and defended the “sovereign powers” of the executive to submit agreement proposals.