ACP as a source of information
Source: El Colombiano – Regional
Date: April 14
Headline: An oil that still does not excite
On Sunday, the decision of the Organization of the Petroleum Exporting Countries (OPEC) to reduce production by 9.7 million barrels per day was received as a breath of fresh air, to stimulate prices –which have fallen 32% in the last month– and thus improve the income of countries that depend on this industry, such as Colombia. (…) “Under other circumstances, a cut of 10 million barrels would have skyrocketed prices. Especially considering an agreement from OPEC, Russia, and G20 countries, which if everyone complies, could reach 15 million. This should give confidence to the markets. But that is not the case, at least as of now. The slight rebound in prices is a clear sign of this: the markets are skeptical,” added Francisco Lloreda, president of the Colombian Petroleum Association (ACP). Graph. Source: Bloomberg and MinMinas. Replied at: elcolombiano.com (April 14).
GREMIO
Source: El Tiempo
Date: April 14
Headline: Gasoline supply for Nariño opens up from Tumaco
On April 8, during the quarantine, the Ministry of Mines published a draft resolution outlining what the transition scheme for the fuel supply plan in Nariño will be. The goal is for distribution to be done from a plant in Tumaco, reducing costs and decreasing the subsidy that the Government pays to transport fuel from Yumbo and Cartago (Valle). (…) Additionally, according to an ongoing investigation by the Prosecutor's Office, there are mafias that divert fuel to cocaine laboratories or collect the subsidy without delivering gasoline and ACPM. Apart from this, in early April, the governor of the department, Jhon Rojas, asked Ecopetrol to authorize the shipment of fuel, so that Tumaco does not run out of supplies during the health emergency due to the coronavirus.
Source: La República
Date: April 14
Headline: Stock market lost 6.51% of its shareholders in 2019
For the past eight years, the stock market has been experiencing a constant loss of shareholders due to various factors. At the end of last year, 6.51% of those who were in that market at the end of 2018 withdrew, which means 35,595 investors. (…) In fact, of the number of shareholders in the stock market that closed 2019, most were concentrated in Ecopetrol, which with 260,862 had 521%; in Grupo Aval, which among ordinary and preferred shares totaled 63,758 investors (12.71%); and in Bancolombia, which with ordinary and preferred shares recorded 28,481 (5.71%).
Source: El Nuevo Siglo
Date: April 14
Headline: «Sweating oil,» an analysis by Juan Camilo Restrepo
The marathon virtual meetings held last weekend by OPEC member countries and other invited producers highlighted the fragility of the international crude market, almost as fragile as the public health situation worldwide. (…) Two conclusions are relevant for Colombia: The first is that a long period of low prices awaits us. And that Ecopetrol, like most oil companies in the world, will have to minimize its investments in exploration and exploitation. In fact, it has already announced a significant reduction in its investment programs for this year and the next. Now, the prevailing motto is “to protect the cash” at all costs.
Source: El Universal
Date: April 14
Headline: The gas shortage in the country. By: Wadi Romano Jácome
Scientists agree that the shortage is due to the excessive use of fossil fuels in industries and homes to generate heat and electricity, through coal, oil, and natural gas as fuel, among other derivatives. (…) According to the Mining Energy Planning Unit, if the current pace of natural gas demand in Colombia continues, its importation will be necessary by 2024. According to calculations by the National Hydrocarbons Agency, the respective fields are in the stage of productive decline, decreasing their proven gas reserves from 13.5 years to 9.8 years. (…) In addition to this, there are the findings of Ecopetrol in the waters of the Colombian Caribbean, between 3,675 and 4,415m deep. Naturgas stated that we will have enough natural gas to ensure the supply for homes, transportation, businesses, and industries.
Source: Vanguardia Liberal
Date: April 14
Headline: Joining forces to contain coronavirus infections
The National Institute of Health, the District, and Ecopetrol are joining forces to contain coronavirus infections in the Oil Port. Training, contractor control, and facility adjustments are some steps. Barrancabermeja continues the work of reinforcing medical care services to contain the coronavirus pandemic, especially as the number of infections rose to four, including the first fatal victim from Santander. (…) Work with Ecopetrol. Alongside the INS training, the District Mayor met with the manager of the Barrancabermeja Refinery, Carlos García, to strengthen the company's action plan to contain the pandemic. It is worth remembering that the first fatal victim in Barrancabermeja was a worker in the oil industry.
Topics
Source: El Tiempo
Date: April 14
Headline: Dollar falls to levels of a month ago and stands at 3,870 pesos
So far in April, it has lost $211. The dollar has again retreated in the Colombian market, which has its quotation this Tuesday at around $3,870, that is, 16 pesos less than the official rate (TRM) that was in effect on Monday. Just in April, the US currency has fallen $211. This favorable movement for the peso occurred after the officialization of the OPEC agreement on reducing the level of oil supply in 20%. In fact, the Brent reference recorded an increase of 0.83% and has managed to stay above US$31 in recent sessions.
Source: La República
Date: April 14
Headline: In May, oil would be above US$40
After oil prices recorded their largest declines since 2001, Saudi Arabia, Russia, and the United States led an agreement that concluded with the announcement of a total cut of 9.7 million barrels of crude per day. (…) Despite the behavior of the oil market, analysts say this is good news as “the agreement will not allow the price to collapse below US$20 per barrel,” said Julio César Vera, former president of Acipet, (…) Regarding a possible increase in oil prices and their stabilization, Germán Espinosa, executive president of Campetrol, recalled that crude pricing has responded more to demand movements since 2019, so the uncertainty about its direction in the coming months prevents the price from rising above US$40.
Source: La República
Date: April 14
Headline: The time has come to talk about the new tax reform
Many pontificate about the consequences of Covid-19 on the healthcare system of Colombians, but few dare to face the new reality of state finances post-coronavirus. The truth is that it is easier to talk with facts or generous actions in times of tribulations of cooperation and solidarity, but when more or new taxes are mentioned to support the crisis, faces begin to change. It is no secret to anyone that Colombia's fiscal outlook had been improving in recent years, not only due to the good performance of the economy but also because the central government was already showing a surplus of 0.5% of GDP during the last year and it was expected to reach 0.6% of GDP; figures not seen in several years. (…) Even no one saw the drop in oil prices coming, circumstances that force an urgent macroeconomic adjustment for the country.
Source: Portafolio
Date: April 14
Headline: National University professors divided over 'fracking'
The polarization triggered by the initiative to develop unconventional deposits (YNC) through fracking in the country is affecting scientists at the National University of Colombia. The reason is a study requested by the Council of State from this educational institution to clarify questions about the mentioned technique, which ultimately divided the team of nine scientists chosen by the alma mater for the task. (…) Furthermore, it indicates that it is necessary to have a detailed understanding of hydrodynamics so that the river systems and bodies of water in each basin are known and the impact that can occur on the surface when fracking exploitation is carried out.
Source: Portafolio
Date: April 14
Headline: Historic OPEC+ cut failed to boost prices
OPEC and its producer allies, including Russia, reached the largest oil production cut agreement in history over the weekend to reduce supply in the international market—a measure that, however, did not significantly boost prices. Specifically, the alliance known as OPEC+ agreed to a reduction of 9.7 million barrels per day, practically one-tenth of total global pumping. Yesterday, however, the increase in Brent price was 0.83% to US$31.74 per unit, while WTI showed a decrease of 1.49% to US$22.42. (…) However, analysts make it clear that production cuts will not only come from this agreement, but that low international prices could lead to further declines because many companies will not produce at a loss, »For example, fracking companies in the United States are not profitable, so it is estimated that about 2 million barrels per day could stop being pumped in that country,« points out Ballén.
Source: El Nuevo Siglo
Date: April 14
Headline: Sovereign debt rating downgraded. By: Amylkar Acosta
First, it was the risk rating agency S&P Ratings that downgraded the outlook from stable to negative for the Nation's sovereign debt, warning that “the negative outlook indicates our view of the downside risks to Colombia's fiscal and external metrics over the next 18 months. The recent drop in oil prices, along with the broader negative global impact of Covid-19, has raised concerns about its economic growth prospects.” (…) Although the director of public credit, César Arias, claims otherwise, stating that “it is a premature moment to worry about losing the investment grade,” this is not irrelevant; this is a severe setback for fiscal policy and reduces maneuvering room at a time when public finances are under greater strain and at their highest level of stress due to the combined effect of the pandemic and the drop in international oil prices.
Source: Vanguardia Liberal
Date: April 14
Headline: Primacy of the species over the individual? By: Jaime Calderón Herrera
No one knows what will happen after the pandemic, because there is no one who can accurately know how it is happening or its intrinsic complexity. Experts in disciplines dependent on data may end up predicting retrospectively. I prefer to believe the philosophers and poets. We know about the recurring past pandemics and have a list of problems to solve: economic recession, climate change, wars for oil, and soon, those for water, social upheavals, etc.
Institutional
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Source: Vanguardia Liberal Despite the agreement reached by the Organization of the Petroleum Exporting Countries, OPEC, and allied countries to decrease oil production by more than 9.7 million barrels per day, markets have not yet reacted, and crude prices continue to stagnate. (…) A similar view is shared by former Finance Minister Juan Carlos Echeverry, who, in a dialogue with Caracol Radio, stated that the stagnation of crude prices is mainly due to the market not believing in these OPEC agreements. “It is a market full of doubts and shadows, and for Colombia, it is very important that the agreement works and the price jumps back from where it is today to 40 dollars per barrel of Brent, that would be wonderful,” said the former minister. (…) According to figures from the Ministry of Mines and Energy, 5% of the national GDP is generated by the hydrocarbons sector. Likewise, 8% of the royalty budget comes from this sector.
Source: BLU Radio Date: April 13
Source: eltiempo.com On April 8, during the quarantine, the Ministry of Mines published a draft resolution outlining what the transition scheme for the fuel supply plan in Nariño will be. The goal is for distribution to be done from a plant in Tumaco, reducing costs and decreasing the subsidy that the Government pays to transport fuel from Yumbo and Cartago (Valle). (…) Additionally, according to an ongoing investigation by the Prosecutor's Office, there are mafias that divert fuel to cocaine laboratories or collect the subsidy without delivering gasoline and ACPM. Apart from this, in early April, the governor of the department, Jhon Rojas, asked Ecopetrol to authorize the shipment of fuel, so that Tumaco does not run out of supplies during the health emergency due to the coronavirus.
Source: llanoalmundo.com Headline: The governor reiterated the call to oil companies to comply with the isolation of personnel. The Secretary of Mines and Energy of Meta, Arnulfo Cruz, will be the delegate to initiate coordinated work with mayors of the oil municipalities of the department and executives of Ecopetrol, in order to adopt health measures in the movements of personnel during their shift changes, adaptation of new work schedules, and the non-entry of personnel from the hydrocarbons sector from other regions as a precaution against COVID-19. This decision was made known after the videoconference led by the governor of Meta, Juan Guillermo Zuluaga, with the Deputy Minister of Mines and Energy, Diego Mesa, congressmen, and local leaders, in which the Llanos governor reiterated his call and demand for hydrocarbon companies to also comply with actions to face the emergency caused by this virus. |
Colombian Association of Oil and Gas