The falling price of oil might be what hurled the oil industry into a crisis that looks to bring layoffs in the sector, but there are a number of issues that have been in the works for some time, along with the recent tax reform, that have also weakened the sector, according to the heads of two oil industry associations.
The devaluation of the Colombian peso against the dollar has helped lessen the impact of falling oil prices on company balance sheets as their costs in Colombia drop, but for the government it could have a multi prong effect that will leave its revenues short and increase its debt.
The National Planning Department (DNP) has warned that projects that look for royalty funding will have to be prioritized considering the drop of oil prices and the consequences on royalty payments received by the government. This and other royalty related stories in our periodic wrap.
Colombia’s Senate is back in session for 2015 and its first priority involving the hydrocarbons industry is natural gas prices.
The Minister of Labor Luis (Lucho) Garzon led a meeting on Wednesday with workers, company representatives and government officials to address to potential impact that labor cuts could have on the oil regions. This is a follow-on to an article we published yesterday.
State owned Turkish firm Turkish Petroleum International Company has received its environmental license from the National Environmental Licensing Agency (ANLA) to proceed with a project in Norte de Santander.
Minister of Labor Luis (Lucho) Garzon has noted the recent announcements of well closures and project cancelations and wants to find a way to prevent unemployment from increasing.
The Colombian National Association of Business Owners (ANDI) says rethinking the action plan and policies that govern the energy and mining sectors is an urgent task for the authorities due to the fall in international prices.
The exit of National Hydrocarbons Agency (ANH) president Javier Betancourt, though not official via an ANH statement, appears to be a fact, leaving a key vacancy in one of most influential institutions of the hydrocarbons industry in Colombia.
A number of bills affecting the oil & gas industry which were filed in 2014 are set to advance this year along with other pending topics like the low price of oil as Colombia’s congress gets started in 2015.
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