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Long Form Reports

ECP Line-of-Business results are no surprise

ECP Line-of-Business results are no surprise

Last week we discussed pipeline tariffs using figures from Ecopetrol’s Line-of-Business (LoB) results. This week we present our full set of graphs for all of the LoBs.

Monday, May 4th, 2020
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“Oh, how the money rolls in!”

This week the Colombian Petroleum Association (ACP) raised the issue of oil transport costs and in particular, pipeline tariffs. Given the government’s stake in the Cenit, which owns virtually all of the pipelines, the request for lower tariffs will likely be ignored. But Cenit’s victory may be pyrrhic this time.

Monday, April 27th, 2020
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Things were already slipping in 4Q19

Things were already slipping in 4Q19

We know that it is already the second quarter of 2020 and that companies will soon start publishing their 1Q20 results. But year-end results are always a little bit delayed and we have had other, higher priority things to write about. So here are our 4Q19 Netback graphs.

Sunday, April 19th, 2020
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Agreement 01 of 2020 – Help in troubled times?

Frankly, the last time oil prices tumbled, the ANH was less than helpful. There was a grand event where the ANH and the then-minister announced great things! Only to have the agency’s lawyers and the board rip these ‘great things’ to shreds and create regulations that were more onerous and more costly than the ones from which the industry was supposed to have relief. Here Marianna Boza and the team from Brigard Urrutia give us an overview of the latest ‘help’. It does appear to help companies optimize their exploration portfolios but we will leave it to the firms themselves to decide if this is enough to compensate for Brent in the low 30’s.

Monday, April 13th, 2020
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Reimagining Colombia

Some of you may have received an atypical Christmas gift, different from the gourmet baskets or glossy calendars that usually represent “thank you” from suppliers to customers. McKinsey & Company distributed an over 400-page traditional book entitled Reimagining Colombia: Visions of the country we can construct.

Monday, April 6th, 2020
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In the year 2025

In the year 2025

Between Covid-19 and the Russia / Saudi Arabia fight, the short-term prospects for oil prices are not great. But what happens after the pandemic passes, demand picks up and Saudis stop pumping as if there was no tomorrow?

Monday, March 30th, 2020
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Loan me a dime

I arrived from the UK on March 5th. On March 9th, my wife went to the dentist and was refused treatment because I was so recently returned from Europe (sorry Brexit sympathizers). Except for a trip to the grocery store, I’ve been in our apartment ever since. That has given me lots of time to think about the medium- and long-term economic consequences of the current problem.

Monday, March 23rd, 2020
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Do it again

Do it again

Last Friday, Brent closed at US$33.85 by our accounting the lowest weekly closing value since February 2016. Logic and the data suggest things will not get better quickly. The question we focus on here is how companies will react and whether they will be successful.

Monday, March 16th, 2020
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The Coronavirus and the Colombian Industry

Unless your idea of a winter vacation was a solo trek across Antarctica or the Sahara Desert, you are aware that 2020’s top story so far is the Coronavirus aka Covid-19. While health concerns are primary, the economic impacts are not inconsequential.

Monday, March 9th, 2020
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Foregone Conclusion Part 2 of 2

Foregone Conclusion Part 2 of 2

Two weeks ago we looked at the UPME’s demand scenarios, pointing out that 70% of the forecast growth comes from the Oil+Gas sector, a fact we found surprising, especially considering that the forecast was not well explained and seemed to be way off in the first year of the study (2019). This week we look at supply and the ‘balance’ or the difference between supply and demand.

Monday, March 2nd, 2020
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