Already a number of wells have been shuttered for the low price of oil, prompting speculation on how the decline will impact the industry and communities in the short and mid term.
Minister of Labor Luis (Lucho) Garzon has noted the recent announcements of well closures and project cancelations and wants to find a way to prevent unemployment from increasing.
We are not yet plumbing new depths – prices have been lower even in this century, even since the founding of the ANH – but likewise there is little beyond perhaps wishful thinking that this is going to stop soon.
A number of recent announcements of closures of wells in Casanare communities like Maní, Trinidad and Aguazul due to the low price of oil has authorities worried that the impact to local hiring and social investment could wreak havoc on the department.
Oil pipelines could become a crucial element in today’s price scenario as companies, will be forced to find ways to lower their operational costs, something which pipelines could offer with greater efficiency than tankers.
The Colombian National Association of Business Owners (ANDI) says rethinking the action plan and policies that govern the energy and mining sectors is an urgent task for the authorities due to the fall in international prices.
The ELN played a leading role as the overall count increased once again to 27 this week (below the long-term average but above recent averages), driven mostly by an increase in non-Armed Forces-reported incidents.
The USO this week returned to its push to return the Rubiales Field to Ecopetrol (NYSE:EC) and also alleged that powerful forces are using the low price of oil to restructure Ecopetrol and the Ministry of Mines and Energy (MinMinas) against unionized workers.
The exit of National Hydrocarbons Agency (ANH) president Javier Betancourt, though not official via an ANH statement, appears to be a fact, leaving a key vacancy in one of most influential institutions of the hydrocarbons industry in Colombia.
A number of bills affecting the oil & gas industry which were filed in 2014 are set to advance this year along with other pending topics like the low price of oil as Colombia’s congress gets started in 2015.
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