Much of Latin America has rebelled against its political leaders in recent weeks. Colombia has not been immune but neither has it been as violent as Chile or Ecuador. When polled, most Colombians identify corruption as the issue that most concerns them. To understand this better, we looked at a recent Transparency International corruption study which compares 18 Latin American and Caribbean countries.
I probably got your attention out of morbid curiosity but I will not be writing about some sordid tale of shenanigans in the back streets of Barrancabermeja. Instead, I have been reading a number of articles about ethical investment lately, and companies that ethical investors are expected to shun are referred to as “sin stocks” or “vice stocks”. Shades of Crockett and Tubbs!
This was not a good quarter for oil prices and investors seemed to take it out on oil stocks. The good news is that Colombia-focused shares were not punished any worse than their global peers.
I had to reread last week’s articles and, in doing so, I discovered an inadvertent theme. We did not plan it this way but we had a lot of articles on the environment, especially the evolution of Colombia’s energy matrix.
Nelsen Navarrete is well known in the oil and gas community. In his spare time, he supports the Colombian Engineers’ Association, ACIEM in a number of ways most importantly as the Chairman of the Board of the Cundinamarca Chapter and President of the Organizing Committee of the association’s annual energy conference, ENERCOL. In his opening speech to the congress, Navarrete and ACIEM steered a course between recognition of climate change and support for Colombia’s extractive industries.
A couple of weeks ago we wrote about oil prices concluding that “Your CFO is unhappy because prices are low and appear to be falling.” CFOs were no doubt happy in 2Q19 because netbacks (on average) were up.
Last week, the Externado University held a half-day conference on how Colombia was dealing with its climate change commitments under the Paris Accords. I went because I was interested, because I wanted to see how the oil and gas industry was treated and because I knew Ed Caldwell of Gran Tierra was going to speak.