The 2014 Round of bid auctions and the associated VI Colombia Oil and Gas Investment Conference in Cartagena was the most anticipated event in the industry calendar so we devote a number of articles to that, including our unofficial, unsanctioned analysis of who won what and the translation (with our commentary) of MinMinas Amylkar Acosta’s defense of the outcome.
On Wednesday, July 23rd in Cartagena, 38 companies will look at 95 blocks and place their bets. What do we think they will do?
Without really planning it this way, this month’s report has several articles on the same topic: the relationship between the industry and the community.
Royalty reform or rather counter-reformation is the subject of a long article this month partly because MinMinas Acosta brought it up but mostly because we believe that the current system is the cause of much community conflict.
(Due to technical reasons beyond our control, we were unable to publish the usual Heavy Crude Oil Markets column in our May Inner Circle Monthly Report. We apologize for the inconvenience and hope our readers find this month’s report useful.)
This month we start with an interview with Independence’s Rose Marie Saab. She gives an optimistic view of the industry but a realistic one, based both on her role as the leader of Independence – a leading oil services company –but also as the chairperson of the board of Campetrol, the services industry association.
The gap between WTI and Brent opened in late 2010 and from mid-2011 to mid-2013 average Colombian realized oil prices moved in the gap. The gap has closed somewhat in the past few quarters but, for unrelated reasons, average Colombian realized oil prices have moved to or below WTI.
The United States’ shale gas revolution has awakened in other countries around the world the desire to repeat it, and the United Kingdom is one of the front-runners.
This month we start with an interview with Barry Larson, COO of Parex and Lee DiStephano, Parex’s leader in Colombia. They give us a clear-eyed view of the challenges but the overall tone is positive.
This month we have a number of interviews on a variety of topics.
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