At the natural gas industry’s annual conference a few weeks ago, ex-ANH head and now Vice-minister of Energy, Orlando Cabrales, talked about the Coal Bed Methane (CBM) opportunity. The only National Hydrocarbons Agency (ANH) auction planned this year is for CBM and the next big oil and gas auction is not expected until 2014. Based on the data which we show in the above chart, Cabrales expects 23TCF of CBM to be available from the six top areas.
The Environment section of national newspaper El Espectador devoted nearly a full page of today’s edition to a report (from Spain’s El País) on a 5.7 magnitude quake in Prague, Oklahoma in 2011. The El País story in turn is based on a report in Geology magazine which concludes the quake was caused by the accumulated impact of 20 years of water reinjection from a conventional gas well. The photo used to illustrate the story, and indeed most of the story, has to do with the fracking debate and the relevance of this incident to nonconventional hydrocarbons development.
Last week was the natural gas industry association’s annual conference and he minister’s speech is a much anticipated event. MinMinas Renjifo did not disappoint the crowd with the breadth of his speech but we understand the content has the industry concerned over certain points. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.
Maybe he took vacation or maybe these things just take time. The changes were announced weeks ago and the former head of the ANH, Orlando Cabrales, has already made a few speeches in his new capacity as Vice-Minister of Energy. The new head just took possession last week and has made no public comments. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.
As reported by RCN Radio, road blocks were lifted around Yopal, capital of the Casanare department (which produces 18% of the country’s oil and 70% of its gas) after citizens barriaded them to protest the lack of water. According to Ivan Mustafa, Deputy Minister of Water, an agreement between the government and the people of Yopal was reached. Meanwhile, people will continue to receive water in tanker trucks.
A few weeks ago we reported a La Republica article outlining a number of potential changes. But nobody else but Reuters picked up the story and the ANH (unusually) started issuing press releases on Orlando Cabrales’ activities. Directly after the news report he was to represent Colombia at an unconventional hydrocarbons conference in Buenos Aires and present at the global industry’s biggest event, Cera Week in Houston. Now, on the second day after he gets back, he finds himself with a new job. From a MinMinas press release translated and with commentary by Hydrocarbons Colombia.
The ‘Qifa case’ has acquired a life of its own. This lawsuit between Pacific Rubiales and Ecopetrol turns on a clause that triggers an increase in Ecopetrol’s participation once production hits a certain level. The fight is over whether the trigger is defined by total production or just Pacific Rubiales’ net production. So much has been published on such little understanding that a number of ‘myths’ have arisen that Pacific has gone public to deny.
According to Mercedes Rincón, member of Congress, in view of the profits that currently Ecopetrol earns, it is clear that the government was wrong when, two years ago, it tried to sell 10% of the company’s shares that owned. As reported by El Nuevo Siglo, the congresswoman believes that the government’s aborted attempt to sell another 10% would have been a bad idea and it has proven better to have held onto the shares.
National business magazine Dinero reported that despite the country achieved an average production of 1,011,992 bpd; the priority now is to find oil reserves. Reserves in Colombia are of 2.259M barrels, which virtually allow a production for four or five years; however, according Amylkar Acosta, member of the board of Ecopetrol: “On average, in the world, the relationship between production and reserves is for a horizon of 10 years. But in Colombia, in 2012, that equation has declined for the fourth consecutive year, as production increases faster than the amount of reserves.
As reported by business newspaper La Republica, Colombia will participate in the Mining Investment Show, to be held in Toronto, Canada. A Ministry of Mines and Energy committee, the National Mining Agency and Invest in Bogota, a subsidiary of the Chamber of Commerce will attend.