ACP as a source of information
Source: La República – National
Date: March 31
Headline: Brent at US$20 decreases by $16 trillion oil revenue
The geopolitical crisis between Russia and Saudi Arabia, following the failed OPEC agreements, increasingly exacerbates the situation of the oil industry. The effects of the dispute have reduced the WTI price to 17-year lows (US$20) and caused Brent to reach a price of US$22 per barrel, a quote that already alarms the National Government and represents significant fiscal impacts. The reduction in revenue, the increase in the current account deficit, and the financial situation of Ecopetrol are three of the five effects the country faces with low prices. (…) The figure corresponds to the fact that for every dollar the crude price falls, between $300,000 million and $400,000 million are not received, according to the ACP and Campetrol. (…) “With a price below US$25 compared to a price of US$50 per barrel, revenues from royalties, taxes, and participations can easily be reduced by between $6 trillion and $9 trillion,” said Julio César Vera, former president of Acipet and hydrocarbon expert. Responded in: larepublica.co (March 31).
Source: laschivasdelllano.com – Regional
Date: March 31
Headline: Oil companies donate protective equipment for COVID-19 management in Casanare
Personal Protective Equipment (PPE) to control and reduce the risks of COVID-19 spread was received by the Public Health Surveillance team of the Department and the managers of Red Salud Casanare and the Regional Hospital (HORO), Leider Yesid Daza and Ronald Roa, respectively, as a result of the efforts made by Governor Salomón Sanabria before the Colombian Petroleum Association (ACP), representing the hydrocarbon sector, in its commitment to managing and mitigating the health emergency facing the country. (…) Additionally, it will be delivered to public health technicians in the municipalities, so they can carry out their field activities using personal protective equipment, safeguarding their health and life. Responded in: millanotv.co (March 31).
Source: Manantial Stereo – Regional
Date: March 30
GREMIO
Source: El Tiempo
Date: March 31
Headline: Oil at US$22, a hard blow to the country's finances
The 8.7 percent drop this Monday in the price of Brent oil, which has the barrel at lows not seen in 18 years, $22.76, is increasingly leaving the Government with less room for maneuver, since although the country is not a major crude producer, its finances do depend heavily on this raw material. (…) It refers to the fiscal implications of covid-19. In his opinion, there is the effect on Ecopetrol's finances and the loss of competitiveness of many oil wells that require breakeven points above $30 per barrel to continue operating. Thus, losses are expected for Ecopetrol and lower income taxes for 2021 for both that company and the rest of the oil firms operating in Colombia. There is also the channel of external public debt whose service (interest plus amortizations in dollars) will become more expensive.
Source: El Espectador
Date: March 31
Headline: The dark move of a Russian oil giant in Venezuela
Some believe that the exit of the Russian oil company Rosneft from Venezuelan lands is a victory for the U.S., but others see it as a strategic maneuver by the Russians. Venezuela is one of those corners of the current world that, even in the worst moments, remains in the sights of the great international powers. The last media bomb dropped last Saturday when, amid the uncertainty and frantic speculation unleashed by the new coronavirus, the largest Russian oil company, Rosneft, announced the cessation of its operations and the sale of its assets in the country (joint ventures of Petromonagas, Petroperijá, Boquerón, Petromiranda, and Petrovictoria, among others). (…) The Russian government knows that a subsidiary in its hands does not have to answer to its private investors like a giant like Rosneft, whose main shareholders are state-owned Rosneftegaz (50.1% plus one share), British Petroleum (BP), with 19.75%, and the Qatari company QH Oil Investments, with 18.93%.
Source: El Espectador
Date: March 31
Headline: Due to the Covid-19 crisis, Sarmiento Angulo will donate 180 billion
Businessman Luis Carlos Sarmiento Angulo informed the President of the Republic, Iván Duque, of his donation totaling 180 billion. The donation, according to a letter sent by Sarmiento Angulo to the head of state, «will be distributed in three fronts that we have identified as priorities, namely: the acquisition and distribution of markets for the most vulnerable population; the acquisition of 300,000 kits (initially) for conducting diagnostic tests for the detection of the coronavirus COVID-19, which will be delivered to the Ministry of Health and Social Protection and the INS so that they can be applied as soon as possible, and the acquisition of ventilators for the care of patients with pulmonary insufficiency.» The donations from Sarmiento Angulo and the Aval Group add to those announced by other companies such as Terpel, Ecopetrol, Bavaria, Postobón, and Éxito, in order to address the health, economic, and social crisis.
Source: La República
Date: March 31
Headline: For the CEO of the Aval Group, it is still early to make ‘apocalyptic’ predictions’
During the General Shareholders“ Assembly of the Aval Group, the president and CEO of the holding, Luis Carlos Sarmiento Gutiérrez, warned that, given the situation due to the state of economic emergency that the Government declared as a result of the expansion of Covid-19, the situation will affect the national economy, especially the deficits in the trade balance, fiscal balance, and current account. (…) In addition, he added that the crisis in oil prices, which places the WTI barrel at around $20 and Brent (the benchmark for the Colombian economy) at $23, also generates a negative impact on the country's finances and, especially, on Ecopetrol's revenues. ”The price of oil will have negative impacts for the country, as it represents 40% of Colombian exports. This level would decrease Ecopetrol's income and its dividends to the Government, which would pose additional challenges to comply with the fiscal rule. This will be known when the world’s producing powers agree to regulate market supply," he emphasized.
Source: La República
Date: March 31
Headline: Terpel will donate gasoline amid the crisis
The Terpel Organization, led by its president Sylvia Escovar, will donate about 34,000 gallons of diesel, 5,000 gallons of regular gasoline, and 6,000 m3 of vehicular natural gas to the Association of Food Banks of Colombia (Abaco). This will be all the fuel required by the entity to deliver more than 108,000 tons of food to the most vulnerable populations in the country.
Source: El Colombiano
Date: March 31
Headline: Oil continues to plummet and is already approaching $20
Brent and WTI reference prices reached levels not seen since 2002. The low demand due to quarantine is one of the causes. The average oil price last year, in its Brent reference, was $64.37, according to figures from the U.S. Energy Information Administration. Nowadays, this commodity is trading at about a third of that record. In fact, according to information from the AFP Agency, the Brent reference, which is the one considered in the country's fiscal accounts for oil, fell again yesterday. In total, the decrease was 8.7%, which brought it down to $22.76. (…) Ecopetrol is the flagship company of the Colombian state, which last year showed record figures, achieving a profit of 13.3 trillion, which represented 26.3 trillion pesos for the State in dividends, taxes, and royalties. This year, Ecopetrol's stock has fallen sharply in this scenario (see Parenthesis).
Source: Vanguardia Liberal
Date: March 31
Headline: Human settlements, the first to receive aid
The first delivery day was accompanied by public force and took place in Comuna Tres, where the community orderly and without any setbacks opened its doors to this benefit. A total of 25,000 social aids were allocated as oxygen for the same number of families in Barrancabermeja, which will be a relief amid the crisis generated by the coronavirus. The first to receive these food aids and hygiene kits were 2,500 households located in the 85 human settlements in the city, such as Miradores del Palmar, Altos del Salvador, Villa de Dios, 12 de Agosto, and the Cabildo Zenú, among others. (…) The official highlighted Ecopetrol's contribution of 1.5 billion and invited other companies and individuals who are able to do so to contribute, to continue mitigating the economic needs of the vulnerable population during the mandatory social isolation due to COVID-19.
Source: elmundo.com
Date: March 31
Headline: Maduro and Trump's political maneuvers
At a time when the United States became the country with the highest number of COVID-19 coronavirus infections in the world with 100,717 cases and more than 1,544 deaths, surpassing China where the infection originated, it faces one of the worst health and economic crises that threaten the legacy and re-election of President Donald Trump. Federal Justice and the Trump administration ordered the capture of Venezuelan President Nicolás Maduro on charges of drug trafficking, and at the same time announced a million-dollar reward for his capture of USD 15 million. (…) On Monday, March 16, when the major stock markets in the world collapsed, Occidental Petroleum, one of the largest oil companies in the United States, saw its shares fall and was forced to reduce its dividend by 90% and cut its capital expenditures. That same day, the Dow Jones index fell by 12.9%, the largest daily drop in the last three decades, the second-largest drop in its 124 years of operations, and accumulated losses that erased all gains since Trump took office.
Source: meridiano70.co
Date: March 31
Occidental de Colombia, LLC, (Occidental) expressed solidarity with the Araucanians and their authorities, in light of the health emergency that the country and the world are facing due to the Covid-19 virus. In this context, Occidental will channel all its efforts towards preventing contagion and improving medical assistance and treatment services, necessary to efficiently care for the population of Arauca that may be affected by the virus. (…) «We will direct our efforts to protect our employees and contractors, and to work hand in hand with national, departmental, and municipal authorities, to strengthen the health system of Arauca,” said Ed Hanley, President and General Manager of Occidental in Colombia.
Topics
Source: El Tiempo
Date: March 31
Headline: Reader's forum. Fracking, we need to think it through better
Mr. Director: EL TIEMPO of 3/29/2020 talks about fracking. Since school, I heard that oil revenues should be invested in agricultural development. I am now of the age of preference due to the coronavirus, and this was not done. Oil tends to run out – of course, they also said this when I was in my rural school. Now that supposedly we have to resort to fracking, which has economic, social, environmental, health, and climate change impacts, according to experts from the National University. From the pilot project, it was concluded that the waters needed to bomb the rocks affected nine indigenous reserves, a community council, and a peasant reserve. Does such a catastrophe justify the current oil prices? It is better that we think, for by disrespecting nature we are where we are. Fidel Vanegas Cantor.
Source: La República
Date: March 31
Headline: Consumptions affected by volatile dollar
On Monday, the dollar reached an average price of $4.065,11, which represented an increase of $22,31 against the Representative Market Rate (TRM), which was set today at $4.042,8. (…) Given the uncertainty surrounding the future of the economy due to the spread of Covid-19 and the sharp declines in oil prices due to the war between Saudi Arabia and Russia, the exchange rate has shown highly volatile behavior in the last month, reaching quotes above $4.000 and trading at historic highs.
Source: La República
Date: March 31
Headline: Oil prices. By: Luis Fernando Vargas-Alzate
Closing Friday with a really depressed price per barrel (Brent US$24,13 and WTI US$21,51), the fall of international crude values continues to attract attention. Yesterday, the quotation fluctuated below US$20, a highly concerning fact in nations like Colombia, which are dependent on this cost to plan and develop their fiscal and financial activities in general. At this point, the historical aspect is relevant; given the circumstances and events that occurred more than 45 years ago, which raised the price of crude oil to levels that at the time were unsustainable, but which particularly over time became part of the landscape, and both the international productive systems and the economic and financial systems ultimately accepted such an increase.
Source: Portafolio
Date: March 31
Headline: Looking ahead. By: Rosario Córdoba Arces
We are at home, confined, overwhelmed by the amount of information coming in and hoping that the Government's measures to flatten the curve of infections and postpone the peak of the coronavirus will have the expected results. The health system is preparing, within its possibilities, with initiative and innovation to face the situation when it reaches its worst moment. This is essential, and neither resources nor efforts can be spared to achieve it. (…) The Government faces the double impact of the collapse of oil prices and has fewer resources than anticipated in the Medium-Term Fiscal Framework. It will have to restructure spending to address the situation, and it is not ruled out that it may have to present another tax reform, eliminating exemptions and benefits granted in the Growth Law.
Source: Portafolio
Date: March 31
Headline: Oil price at its lowest since 2002
The price of crude oil continues to decline and yesterday reached lows not seen since 2002. This is due to the drop in global demand and the price war intensifying between Russia and Saudi Arabia, compounded by the coronavirus pandemic. While the WTI benchmark barrel for May delivery ended at US$20,09, a 6,6% drop from its Friday close; the Brent benchmark reached US$22,76, representing a decrease of 8,7%.
Source: El Colombiano
Date: March 31
Headline: Coronavirus and the black swan. By: Juan Camilo Quintero
Nassim Taleb, the Lebanese essayist, defined a Black Swan as a rare event that is outside of normal expectations and simultaneously produces a very large impact. I believe this is the best definition for what we are currently experiencing. (…) Multilateral institutions are already acting, and countries like the United States are injecting aid to their population of US$2 trillion, Germany for €$700.000, countries with strong economies. But Colombia, with higher poverty levels, with informality around 48 %, with uncertain income with oil at US$20 faces a problem of greater dimensions, especially when the fiscal deficit is 2,7 %. This crisis then forces us to reinvent ourselves, to be more creative in how to manage the virus while also reducing the impact on the economy and on the poorest people.
Source: El País
Date: March 31
Headline: «There is no evidence that fracking does not threaten health»
The report from the National University warning about the risks of fracking practices in the country is now in the office of the magistrate of the Council of State, Ramiro Pazos, who must decide whether this initiative can proceed in the national territory. The magistrate had requested such a report since June of last year, in which he asked the higher education center to provide insights to the court about the risks that human health and the environment could suffer if this practice were authorized in the country. (…) In addition, the document states that pollution from the dust raised by the tanker trucks required to transport water and other supplies for fracking could cause respiratory ailments to people near unpaved roads.
Source: prensalibrecasanare.com
Date: March 31
Headline: In El Morro, they demand more preventive measures to avoid the entry of Covid-19.
The community of the El Morro district in Yopal questioned the passage of cargo vehicles and personnel coming from Bogotá and abroad to the CPF of Floreña and Termoyopal, without the necessary protection and disinfection measures being taken. Leaders from that oil region indicated that so far there has not been a single case in the district, which is why they fear that with the passage of vehicles from Bogotá, where the highest number of Covid-19 cases is recorded, the virus could arrive at any moment.
Institutional
Source: sostenibilidad.semana.com
Date: March 31
Headline: Interdisciplinary commission warns that it is not possible to do fracking responsibly.
The Council of State already has in its possession the conclusions of the expert report requested from the National University within the process of nullifying the regulatory framework of that technique in the country. Is it a setback for the government? On several occasions, the Minister of Mines and Energy, María Fernanda Suárez, has stated that the extraction of gas and oil through hydraulic fracturing in unconventional deposits, also known as fracking, can be carried out responsibly and safely. (…) In the document, the experts highlighted that several of the 12 blocks of unconventional deposits assigned by the National Hydrocarbons Agency, based on data from the Land Map updated to July 2019, overlapped with Andean and high Andean rainforests, tropical dry forests, and wetlands.
Source: caracol.com.co
Date: March 31
Headline: Expert report concludes that fracking is not advisable.
The Council of State received an opinion from a group of experts from the National University regarding the use of fracking in the country. According to the academics, this practice is not advisable for the exploitation and exploration of oil and gas, as it can jeopardize human health. This evidence will be taken into account in the decision that the high court must make on whether to allow the use of the practice in Colombia. It is magistrate Ramiro Pazos who is handling this process. According to the group of experts on the use of fracking, it is also not advisable because the regulations issued so far do not meet technical requirements and do not take into account the Ministry of Health.
Source: Heavy Load
Date: March 30
Headline: Environment and energy transition.
In the framework of the World Economic Forum held in Davos, Switzerland, from January 21 to 24, Colombia participated with the presence of the ministries of Mines and Energy, Environment and Sustainable Development, Commerce, and the presence of ProColombia; President Iván Duque and his team achieved the best performance in terms of growth in Latin America (…) The Ministry of Mines estimates that a potential development of fracking would increase natural gas and crude oil reserves, which could go from 9.8 years to 35 or 50 years, and from 8 to 22 years, respectively. It would also be a source of income for the treasury. MinMinas believes that GDP could increase by 10 percent, foreign direct investment by 40 percent, and 68,000 jobs would be created; however, it should be noted that the Council of State has suspended fracking in the country due to the precautionary principle.
Colombian Association of Oil and Gas