The Biennial General Royalties System (SGR) budget for 2015-16 has been presented, contemplating CoP$18.27T (US$8.97B) for 2015-16 for investments and savings. While the amount has increased, it depends on meeting tough production goals, and has left producing regions feeling shortchanged.
After rising two weeks in a row, articles on fracking or unconventional hydrocarbons fell last week. Positive articles exactly balanced negative ones.
The Colombian Petroleum Association (ACP), criticized a proposed increase of the wealth tax which it says would deter exploration activities and investment just at a time when the industry and country need it. Instead the government should address issues of security, protests and licensing to increase production.
The National Environmental Licensing Agency (ANLA) has rejected 48% of the licenses presented to it for approval, and 118 projects are on standby due to the approval process. The majority are related to the oil industry.
Most of the debate surrounding fracking and unconventional production has centered on the extraction of crude, but the Colombian Association of Natural Gas (Naturgas) Eduardo Pizano says its just as important for the future of the gas industry as well.
The outgoing director of the Energy and Gas Regulation Commission (CREG) Carlos Fernando Eraso says that the new regulatory framework in place for the natural gas industry means that companies have no impediment to investment in the sector.
Meta Senator Maritza Martinez continues her push to modify the laws governing the General Royalty System (SGR), and said in a press interview that only 6% of approved royalty funds have been executed since the entry of the new system.
A number of Senators have dragged up old, incorrect and unsubstantiated claims, accusing the mining and oil industries of dodging taxes and hurting the national economy, claiming that up to CoP$30T (US$14.8B) of state funds have been lost. The senators also rejected the presence of vice ministers to comment on their accusations.
The Ministry of Mines and Energy, Ecopetrol (NYSE:EC) and local authorities have established a fixed price for fuel on the shared border with Venezuela, as authorities from both countries look to limit the contraband fuel market.
Articles on fracking and unconventional oil and gas technologies in the Colombian press increased for the fourth week in a row. But this past week, the balance was positive.
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