The hydrocarbons sector must continue to be the vehicle for the country's energy development: President Iván Duque

The president of the Colombians gave a boost to the oil and gas industry, and rejected the voices of those who have wanted to demonize the sector.

 The hydrocarbons sector of Colombia celebrated its first century at the I Oil and Gas Summit, «100 years driving the development of Colombia.» During the event's opening, the President of the Republic, Iván Duque Márquez, highlighted that this sector has been a driver of economic development for the country and the regions, and stated that the hydrocarbons industry will be fundamental for the fiscal challenges of the next decade.

«What Colombia needs is to understand that we must know how to take advantage of the wealth of the subsoil, to defeat the poverty of the soil. I believe that the country must assume that, in the face of the fiscal challenges of the next ten years, we cannot disregard oil,» the president assured.

Duque pointed out that he is surprised by the way the industry has been demonized and that «some try to say that the best blessing Colombia could have is for oil to run out, and then we would return to the question of how much we would have to export in other raw materials to import barrels.».

According to the President of the Republic, the hydrocarbons industry represents more than 20% of the Nation's fiscal revenues, about 40% of the foreign exchange market, approximately 46% of the capitalization in the stock market, and more than 50% of exports, which is why he invited the sector to remain in constant reinvention, to bet on best practices, and to continue being an allied sector of the regions.

In the face of an energy transition in Colombia, the President stated that the hydrocarbons industry can maintain and strengthen itself without this meaning that the country does not diversify its matrix. In this regard, he stated: «What I want is for this sector to continue being the vehicle for the country's energy development» and that, in turn, «Colombia diversifies its energy matrix and manages to combine conventional energy with non-conventional renewable energies.».

The President of the Colombian Petroleum Association (ACP), Francisco José Lloreda Mera, also referred to this topic during his opening speech, stating that energy diversification is not incompatible with the development of fossil fuels. «The International Energy Agency (IEA) establishes that with the ongoing diversification policies, by 2040, 75% of energy will be fossil, and in a scenario of lower consumption and more renewable and sustainable sources, these will represent 61% of the demand.» He added that in countries like Saudi Arabia, the Emirates, and Russia, hydrocarbons are being developed.

Therefore, Lloreda invited President Duque to promote the hydrocarbons industry and to take advantage of the opportunity that this sector can offer for the country's development. «We are facing a historic, unique, and unrepeatable moment. Foreign companies want to invest in Colombia, but if we continue as we are, they will stop doing so. We need a new transformative push, a better understanding from Colombians of what is at stake, and a state decision, which can only be achieved if the Government leads it,» emphasized the union leader.

Lloreda reiterated that the industry wants to be a partner of the national government and an ally of the country's economic reactivation, and for that, the sector is in a position to contribute in the next four years $100 billion, in taxes, royalties, dividends, and economic rights, and «for this, investments of $7 billion dollars per year are required, which will only come if there are conditions, and the areas and projects to invest in. According to Francisco Lloreda, to achieve these investments, crucial decisions must be made such as reforming the general royalties system, ensuring legal security, establishing competitive regulation in transportation tariffs, and gradually and comprehensively advancing in the liberalization of the fuel market.".

In his speech, the President of the ACP gave a detailed account of the history of oil in Colombia, highlighting that it is the oil and gas industry that drives the country, «by land, rivers, sea, and air; it provides electrical reliability to industries and homes, allows the countryside to be more productive, and contributes resources to the State like no other economic activity.».

The Presidents of the Oil Guild Committee, organizer of the Summit, and the Minister of Mines and Energy, María Fernanda Suárez, were also present at the installation event.