We originally thought it was just Pacific Rubiales (TSX:PRE) that had taken its shareholders on a ride this month but a closer look shows Ecopetrol (NYSE:EC) on somewhat the same journey.
Led by the Governor of Casanare Marco Tulio Ruiz and the director of social responsibility for the Colombian Petroleum Association, Miguel Angel Santiago, members of the Casanare Oil Industry Committee (CINPAC) met to evaluate the advances of a social investment agreement for 2013-2014.
A poll of 20 different industry associations in Colombia found that that more than half want to see the Finance Minister (MinHacienda) Mauricio Cardenas continue in his role, with similar support for the Minister of Mines and Energy (MinMinas) Amylkar Acosta and the Commerce Minister Santiago Rojas.
An academic review of hydrocarbons and mining sectors and their role in Colombia’s post-conflict era expects the industries to be highly controversial, but says that there is existing legalization to deal with the issues and that the benefit to the economy is too great to stop the train.
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.
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