ACP as a source of information
Hydrocarbons Sector
Source: El Tiempo
Date: October 29
Headline: The country will remain among those that grow the most in 2020: IMF
Two ideas summarize what the International Monetary Fund (IMF) sees in America: the prospects for growth are clouded by the global environment, and internal engines are needed to respond. And there is a third idea: Colombia is among those who navigate this challenge, with the possibility of growing this year by 3.4 percent, and next year, even more: 3.6 percent. (…) The unemployment rate allows space in the labor market. But this context, with relatively stable oil, should continue next year, but with a clear downward bias. Colombia's forecasts, on the margin, benefit from the recovery we are anticipating for the region next year, which also has a significant level of uncertainty. (…) Colombia will once again be one of the fastest-growing economies in Latin America, growing slightly above potential, closing the gap in output that may have opened due to years of low growth after the fall in oil prices.
Source: El Espectador
Date: October 29
Headline: The president of Ecopetrol, Felipe Bayón, shares the plans of the largest company in the country…
The president of the oil company talks about participation in “fracking” in the U.S. and the lessons this could bring for similar exploration in Colombia. He also comments on the company's international strategy and how it is entering the world of renewable energies. Following the path of the world's major oil companies, Ecopetrol is firmly venturing into the field of green energy. To develop new projects, in addition to the Castilla solar plant, an investment of US$200 million is estimated. (…) This, combined with our entry into the (unconventional) fields in the United States alongside Oxy, amounts to nearly 100,000 barrels, and with those from Brazil, it could reach 120,000 potential barrels from Ecopetrol abroad. Ecopetrol produces here 730,000 equivalent barrels and about 20,000 barrels abroad. (…) With the clarification process carried out by the Council of State and the protocols established by the Ministries of Mines and Energy and Environment for the development of unconventional resources, many things will be defined.
Source: La República
Date: October 29
Headline: Oil price and global real GDP slowdown. By: Sergio Clavijo
The global economic weakness has impacted crude oil prices, bringing it to an average of US$64/barrel-Brent so far in 2019 (-12% annually). Now, this price seems close to what dictates global equilibrium, where there is lower demand (especially from Asia) and higher supply (coming from U.S. fracking). (…) The recent correction in crude oil prices would imply averages in the 2019-2024 horizon below the assumptions contemplated by the Duque Administration in the 2019 Medium-Term Fiscal Framework (US$70/barrel-Brent). This highlights the untimeliness of basing hopes for economic recovery and revenue on expectations of higher oil prices.
Source: La República
Date: October 29
Headline: Ecopetrol inaugurated a plant in Casanare
Yesterday, Ecopetrol announced the start of operations of the new Liquefied Petroleum Gas (LPG) plant located in the municipality of Aguazul, Casanare, which will produce between 7,000 and 8,000 barrels per day of this fuel. The state company explained in its presentation report that “LPG, better known as the gas distributed in cylinders or tanks, allows millions of Colombians to replace other energy sources such as firewood and coal in their daily tasks.” In fact, they base this on the fact that today about 20,000 barrels of LPG are consumed daily at the national level. (…) “The main benefit of this new plant is to allow thousands of families to have access to a reliable and safe fuel,” added Felipe Bayón, president of Ecopetrol.
Source: Portafolio
Date: October 29
Headline: Circular economy, social and environmental duty of companies
Like financial results, sustainability management is one of the aspects that companies focus on the most, regardless of the economic sector they belong to or their size. The tightening of legislation around environmental issues, the consensus of most nations on the need to conserve the planet (…) Most Colombian companies have adopted the circular economy model for their activities. Some of the largest, such as Ecopetrol, Grupo Nutresa, Grupo Éxito, EPM, Organización Terpel, Grupo Argos, Claro, and Bavaria have sustainability reports available to the public on their websites, which nowadays carry equal or greater weight than financial results reports.
Source: Portafolio
Date: October 29
Headline: Ecopetrol would exceed 2.7 trillion pesos in profits.
Ecopetrol's profits, at the close of the financial year for the third quarter of 2019, would exceed $2.7 trillion. That is the bet made by some analysts in the country's hydrocarbon sector in anticipation of the results report that the Colombian oil company will announce this Tuesday afternoon to the market. “The market's question is whether the oil company will surpass this target and is on track in the third quarter of 2020 towards the $3.2 trillion it obtained in the same period of 2012,” said one of the experts. (…) Likewise, and as Portafolio anticipated last Friday, Ecopetrol inaugurated the new Liquefied Petroleum Gas (LPG) plant in the Cupiagua field, municipality of Aguazul (Casanare), which will produce between 7,000 and 8,000 bpd of this fuel.
Source: Portafolio
Date: October 29
Headline: The collection of municipalities would rise by almost 3 trillion with the new cadastre.
In January, data collection will begin to update the cadastre of Colombia, after decades without information on rural and urban properties. (…) There are three important projects: the monitoring and implementation of the goals of the National Development Plan. The second relates to royalties, where we seek to execute them better, faster, and therefore change the quality of life for people in the regions, and includes the legislative act we are supporting and the subsequent regulatory laws. (…) For example, the Minister of Mines has done a remarkable job reaching places without connectivity, because while there are still subsidies in large cities, there are populations that do not receive them basically because they do not have the services.
Source: El Nuevo Siglo
Date: October 29
Headline: Standard & Poor’s maintained the country's stable rating.
The risk rating agency Standard & Poor’s (S&P) announced its decision to maintain Colombia's rating as a sovereign debt issuer in foreign currency at BBB- and in local currency at BBB, with a stable outlook. The decision, at the investment grade threshold, was supported by the stability of the institutions and the macroprudential management that the nation has maintained. (…) Likewise, S&P projects that the current account deficit will be at 4% of GDP this year, and that starting in 2020 (3.9%) a correction path will begin such that by 2022 this item would account for 3.6% of GDP, a level close to that observed before the oil price shock.
Regional News
Source: El Colombiano
Date: October 29
Headline: Ecopetrol launches plant in Casanare.
The plant was installed after an investment of 125 million dollars and expects a production of between 7,000 and 8,000 barrels per day of Liquefied Petroleum Gas. This is 30 % of national demand. This was assured by the company through a statement. This allows people to replace the use of firewood and coal.
Colombian Association of Oil and Gas