News and AnalysIs for

The earnings statement of Ecopetrol (NYSE:EC) confirmed that the Asian market and Far East is now well installed as the prime receiving market for Colombian crude, and the Ministry of Mines and Energy says the trend is true for the mining industry as well.

Fuel prices dropped in May as the Ministry of Mines and Energy adjusts its formula to set them, while the issue continues to gain traction on different fronts.

In order for Colombia to achieve self- sufficiency for its own oil supply, an important and dramatic discovery of reserves must happen this decade, otherwise keeping along current trends the reserves logged would not supply the country past 2018, according to a government report.

An innocent question – are there official forecasts of natural gas production? – led to an interesting discussion of the definition of ‘production’ at least as used by industry in Colombia.

The government has received substantial political pressure to lower fuel prices, but Ecopetrol (NYSE:EC) says it will continue to produce fuels despite a price that cuts into their margins and in turn, their ability to invest.

Despite higher average temperatures and droughts in regions such as Casanare, authorities say that the national energy grid should have no problem covering energy demand from hydroelectric dams, even if rainfall over the next couple of months is lower than expected.

This week the Ministry of Mines and Energy (MinMinas) issued a number of statements covering policy items, including a lesson on international price trends, a message of support for the mining and energy sector from President Juan Manuel Santos and a forecast that fuel prices would fall.

The first quarter has just ended and WTI was, on average, 1.3% higher than 4Q13 while Brent was 1.2% lower. What does that mean for average Colombian realized oil prices?

The Ministry of Mines and Energy (MinMinas) says that it is looking to achieve greater stability in the final price of fuel and issued a list of objectives for talks with the transportation sector. But it says the changes must be gradual and linked to market prices.

As the date to announce fixed fuel prices for April approaches, pressure has increased on the national government to lower fuel prices, while the Minister of Mines and Energy Amylkar Acosta insists that the public should not be expecting further cuts.