Ecopetrol (NYSE:EC) grew its P1 reserves to 2,084mmboe in 2014, an increase of 5.7% compared to the previous year. Growth mainly came from revisions in existing fields and its reserves/production ratio is now 8.6 years.
Like anyone in the oil industry, suppliers to oil services companies are feeling the impact of cost cutting and the fall in the price of oil, and in some cases, are feeling it even worse.
In an apparent effort to avoid a truckers strike and ward off critics of its fuel pricing policy, the central government made a surprise announcement to cut both diesel and gasoline prices by CoP$300 (US$0.12), bringing gasoline to its lowest level in almost five years.
Despite the fall in oil prices companies must not simply “discard workers” and cut “the more fragile half” of the business to reduce costs says the Labor Minister Luis (Lucho) Eduardo Garzón.
Incident counts went up again this week (to 38) but that was due to increased Armed Forces activity. As the graph shows, our proxy for guerrilla-initiated activity went down.
Ecopetrol (NYSE:EC) has deeply cut its 2015 Capex and wants to reduce its operational costs by 30% as well, but it will still destine US$200M to offshore development and drilling.
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