There is much cause for concern that Colombia’s crude oil production peaked in August 2013 and has declined since that time. Here is another look at the issue which suggests the problems are limited not widespread.
The Finance Minister (MinHacienda) Mauricio Cárdenas says that the production decreases due to the potent trio of problems facing the industry — infrastructure attacks, community conflicts and environmental licensing delays — are the number one economic concern as President Juan Manuel Santos starts his second term.
The Colombian Petroleum Association (ACP) head Alejandro Martínez was interviewed by well-known journalist Salud Hernández. With retirement from the ACP coming in August, Alejandro is taking of the kid-gloves.
As newly reelected President Juan Manuel Santos finishes celebrating, the hangover is probably starting to settle in. He may not even remember all the promises he made as the campaign got tougher but he soon will and voters will certainly remind him.
In the run up to the 2014 Round auctions in late July, the head of the National Hydrocarbons Agency (ANH), Javier Betancourt, and the Vice-minister of Mines and Energy, Orlando Cabrales, have been talking to the press.
True, he is not going to give any more money to producing regions but they will be able to spend direct royalty money as they please, without having to go through the OCAD approval process.
After a brutal campaign that left many Colombians thinking about voting for ‘none-of-the-above’, President Juan Manuel Santos was reelected meaning we expect continuity in the current government’s policies.
Using Occidental (NYSE:OXY) as an example, an outspoken critic of the oil industry argues in a column that the government and controller must review association contracts renewed during President Uribe’s term because the formula to figure the state’s share is outdated, and apply the lessons to contracts up for renewal, such as Rubiales.
Colombia’s state training agency Sena has unveiled the installation of a specialized “industrial instrumentation room” in Huila, the fifth such facility in the country and part of a strategy to improve local talent in hydrocarbon matters.
A study by UK firm Arthur D. Little commissioned by the National Hydrocarbons Agency (ANH) gave Colombia a 3.9 out of 5 for its investment attractiveness to oil companies, ranking it behind Brazil and Mexico.
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