News and AnalysIs for

Ecopetrol (NYSE:EC) produces 62% of Colombia’s crude so perhaps not surprising that it is the leading producer in almost every major oil department.

The Ministry of Mines and Energy (MinMinas) released fuel prices for the month of June and immediately tried to counter skeptics that would question why the public price of fuel has stayed the same in an election season.

The General Royalty System (SGR) continues into its second year and there is no shortage of critics for the system, but it also has its supporters as well. Over the week a lineup of editorial opinions and press reports have addressed the royalties and the system used to control and award them.

Starting at the beginning of May Colombia cut off gas exports to neighboring Venezuela to guarantee a constant supply of the resource considering the El Niño weather phenomenon. Venezuelan authorities are less than pleased and say the decision could impact its supply to Colombia in the future.

Through a joint effort between the Ministry of Mines and Energy (MinMinas) and the Ministry of Environment (MinAmbiente), a new process including additional requirements will be required for companies to perform seismic tests for exploration.

Rainfalls have fell short of expectations to keep hydro-energy on at full, but authorities say that the energy is well shielded against issues that could cause supply shortages, mainly due to a strong supply of gas. However generators do not want to see gas exports to Venezuela resume just yet.

Criticism of the General Royalty System has not stopped the National Planning Department (DNP) director from promoting its impact and future, the head of the DNP royalties department visits to inspect projects in Casanare and a VP candidate lashes out at a event after receiving questions about the royalty issue. These stories in our roundup of royalty related events and reports.

Through the Business Association for the Development of Orinoquia (Asorinoquia), regional government entities are looking to create public-private initiatives that would compensate for the lack of hydrocarbons royalties and finance needed infrastructure investments.

China’s role as the world’s leader in the consumption of raw materials and its growing interest in the Latin American energy and commodities sectors make Colombia an attractive partner, but today the Asian nation sees Colombia as only a coffee maker, says an expert on China-Latin American relations.

The director of the Energy, Petroleum and Mineral Laws of the Dundee University in the UK, Peter Cameron, visited Colombia to meet with members of the oil, and said that the industry needs more than just a few supermajors to develop its off shore potential.