News and AnalysIs for

Photo: MinMinas
MinMinas Federico Renjifo has a big smile as he helps an unidentified citizen of Valle de Cauca cook on her new gas stove. Maybe it is a sign that he believes more in the concept that there are over 16 years-worth of gas reserves than the concept that the country will run be in shortages by 2019. From a MinMinas press release, translated and with commentary by Hydrocarbons Colombia.

This article in on a website that frequently criticizes the extractive industry is perhaps exaggerated, but at root there is also an issue: local communities do not perceive direct benefits from oil and gas activities in their communities.

When we saw this, we thought it was a garbled rumor but it appeared on the National Planning Department (DNP) website. Then on TV we saw Blair sitting with senior DNP officials and smiling to the press at the foot of the main staircase in the presidential palace. The story passed from rumor to theater of the absurd. From a DNP press release, translated and with commentary by Hydrocarbons Colombia.

Ecopetrol’s results always grab our attention because they come out first. It is tempting to think of them as a bellwether for the industry if only because of the weight the state-owned-enterprise (SOE) has in total Colombian market calculations. So when the giant disappoints, as it did in 1Q13, it is worth asking the question if the causes are common to the industry in general or are unique to Ecopetrol.

The Colombian Petroleum Workers Union, USO, always goes for the big targets: Ecopetrol and Pacific Rubiales. Ecopetrol is open to political pressure from the President of the Republic on down. Pacific annoys them perhaps because it is less subject to political pressure which is why the union went to Canada to protest. The union says Ecopetrol workers in Meta will be on strike this week because contractors pay workers below agreed wages.

Counts were down to 32 which 10% above the recent average and just slightly below the long term average. Our 4-week Moving Average incident count was down slightly at 33.5 incidents but the 52 week average was up marginally to 37.1 incidents per week.