ACP as a source of information
Source: El Tiempo – National
Date: April 21
Headline: Oil was a footnote yesterday and, for the first time, closed with a negative price
The severe crisis in the global oil market, due to the drastic contraction of prices in the face of a sudden drop in demand caused by the social isolation mandated by the coronavirus, and the interruption of activities in most economies, has led markets to unexpected situations. (…) The Deputy Minister of Energy, Diego Mesa, stated that this is an anomaly in the May contract, and those who store oil are being paid to receive crude, because the problem is that there is no space for storage leasing. (…) Francisco José Lloreda, president of the Colombian Petroleum Association, emphasized that the underlying problem is the decline in global demand, given that to date there are 187 countries with various types of isolation measures. It was reported in: eltiempo.com (April 20).
Source: El Tiempo – National
Date: April 21
Headline: The drop in crude oil is already hitting the country's production
Although the country's oil companies have fresh memories of the drop in crude prices between late 2015 and mid-2016, which led them to adopt strict savings schemes, everything has a limit and the first effects for the country are already beginning to be seen. (…) According to government estimates, for every dollar that the price of oil drops sustainably in a year, fiscal revenues decrease by 400 billion pesos annually, which implies a significant drop in resources through income tax and dividends from Ecopetrol, while for the regions it impacts their royalties. In fact, the recent decline in the price of Brent crude, to which Colombian exports are linked, is already being observed in the country's production, as explained by Julio César Vera, former director of Hydrocarbons at the Ministry of Mines and Energy and an expert on oil issues. (…) The president of the Colombian Petroleum Association (ACP), Francisco José Lloreda, urged for fundamental measures for the sector, otherwise there will be closed fields, with a serious impact on the finances of the nation and the regions, not only in 2020 but also in 2021.
Source: El Espectador – National
Date: April 21
Headline: A very bad day
The price of this crude reached its lowest level (US$-37.63) due to a combination of excess reserves and lack of demand, due to the pandemic. However, due to the way this asset is traded, it is likely that this week it will return to the levels prior to this drop, which hover around US$20. Analysis. (…) In light of the historic situation this Monday, the state oil company said that “Ecopetrol markets most of its crudes with reference to Brent and not to WTI. The company has been on a plan of adjustment, optimization, and savings and is exploring additional measures to adapt to the current situation of the oil market.” According to Francisco José Lloreda, president of the Colombian Petroleum Association, “there are 187 countries with various types of isolation measures that explain what is happening. Only in Colombia has the demand for liquid fuel fallen by more than 60 % and by 95 % in the case of aviation Jet Fuel. With a 30 % drop in demand, prices will hardly rebound quickly or reach the levels required in the case of Colombia, a country with expensive production compared to the vast majority of nations. Let us remember that the country requires prices in a range of $40-$45 dollars per barrel of Brent, if we intend for exploration and production not to be affected.” It was reported in: elespectador.com (April 20).
Source: La República – National
Date: April 21
Headline: A barrel of oil is worth less than a dollar
“2020 will be remembered as the worst year in global oil markets. April will be the worst month in the history of the industry,” predicted Fatih Birol, executive director of the International Energy Agency (IEA), days before the WTI benchmark was worth less than nothing (see chart). (…) Based on this outlook, Francisco José Lloreda, president of the Colombian Petroleum Association (ACP), stated that “the problem is global demand. There are 187 countries with isolation measures of different types. If reopening processes begin, they will be gradual and with differences; and in any case, I don't think we will return to the levels of demand prior to isolation, at least for the rest of the year.” This situation has led to oil company stocks declining in the market. Companies like Saudi Aramco (-0.50%), Royal Dutch Shell (-0.82%), Chevron (-4.13%), and Rosneft (-2%) were the ones that fell the most at the close of yesterday's session. (…) Chart: Stock prices of some oil companies. Ecopetrol: -2.04. Replicated in: larepublica.co (April 21), realidad-armenia.co (April 21), noticiaspasto.co (April 21), noticias-tunja.co (April 21),
Source: Portafolio – National
Date: April 21
Headline:WTI: for the first time worth less than US$0
In recent weeks, we have seen the largest drops in oil prices in decades, but yesterday something unprecedented happened: the price of WTI crude fell 305%, the largest drop in a single day. But not only that, the value of the barrel ended the day in negative for the first time in history. This means that yesterday there were a large number of investors to whom producers literally paid to take the oil. (…) With a drop of 30%, it is difficult for prices to return to what the country requires, which is in a range of US$40-US$45 per barrel if we want exploration and production not to be affected,” points out Francisco José Lloreda, president of the Colombian Petroleum Association. Replicated in: portafolio.co (April 20).
Source: El Nuevo Siglo – National
Date: April 21
Headline: The price of oil continues to fall
The oil crash reached historic levels yesterday: the WTI crude barrel, which was trading at US$60 per unit at the beginning of the year, completely plummeted and ended the day at -US$37.63, losing almost US$60 compared to Friday's session. (…) At the end of trading on the New York Stock Exchange, the Dow accelerated its losses and cut 592 points, settling at 23,650 points, dragged down by aerospace company Boeing (-6.70 %) and oil companies Exxon Mobil (-4.72%) and Chevron (-4.20%), among other large corporations. (…) The president of the Colombian Petroleum Association, Francisco José Lloreda, said that “the underlying problem is the drop in global demand. Today there are 187 countries with isolation measures of different types, which explain what is happening. Only in Colombia, the demand for liquid fuel has fallen by more than 60% and in the case of aviation Jet Fuel, 95%. It is difficult to foresee how the ‘reopening’ processes of each country will be, but they will surely be gradual and with differences. And in any case, it does not seem that, at least for the rest of the year, we will return to the levels of demand prior to isolation.” Replicated in: elnuevosiglo.com.co (April 20).
Source: La Libertad – Regional
Date: April 21
Headline: Panic in the oil world: price closed at -37 dollars
U.S. crude collapsed to less than US$ 0 this Monday, recording the lowest price since the New York Stock Exchange opened oil futures trading in 1983. Crude ended up in negative territory, finishing at US$ -37. (…) In Colombia, Francisco Lloreda, president of the Colombian Petroleum Association, ACP, stated that the reduction in oil prices is having a global impact. He warned that the outlook is bleak, as there is nowhere to store crude oil and in the case of Colombia, there are closed wells. In Colombia, more than a third of exports correspond to oil, so this drop in crude significantly affects the country's economy. It is worth noting that royalties from hydrocarbons are key for the development of many projects in the nation. It was replicated in: canaltropical.co (April 21).
GREMIO
Source: El Tiempo
Date: April 21
Headline: Who will benefit the most from the Donatón
After the donation day organized by the Bogotá Mayor's Office last Sunday, and whose results have no precedent in the city's history, this Monday the verification and consolidation of each of the announced contributions began. (…) In fact, during last Sunday’s event, Ecopetrol was the largest contributor. The state oil company, according to its president, Felipe Ballón, made a donation of “more than 20 billion pesos” to strengthen the city's health system. These resources, Ballón explained, were divided as follows: 10 billion for the District's hospital network and more than 9 billion to reinforce the intensive care units of the San Ignacio hospital, the Cardioinfantil Foundation, and the Santa Fe Foundation.
Source: El Nuevo Siglo
Date: April 21
Headline: With 200 beds, Corferias Transitory Hospital opens
In record time and with a joint effort from the national government, the Bogotá Mayor's Office, the Cundinamarca Governor's Office, Corferias, and the Bogotá Chamber of Commerce, the Corferias Transitory Hospital Center was presented and opened to the public by Mayor Claudia López. (…) Additionally, it should be clarified that regarding the Donatón, at least $20 billion of those resources will go to strengthen the health sector, as requested by some donors like Ecopetrol, whose resources will be allocated to strengthening the San Ignacio Hospital, the Cardioinfantil, and the hospital network and safety biomedical material. Finally, it was emphasized that initially, no money from the Donatón will go to Corferias, “only the 200 beds donated by the Turkish embassy,” he added.
Source: El Colombiano
Date: April 21
Headline: Most relevant BVC index fell 1.05%
The index of the 20 most liquid stocks on the Colombian Stock Exchange fell 1.05 % compared to the variation on Friday, and 29.04 % compared to the same day a year ago. The most traded stocks were Ecopetrol ($32.414 million), PFBColom (Preferred Bancolombia, $14.493 million), and the iColcap $5.075 million.
Source: Vanguardia Liberal
Date: April 21
Headline: UIS has conducted nearly 600 COVID-19 tests
Since April 8, the processing of COVID-19 diagnostic tests officially began in one of the laboratories of the Universidad Industrial de Santander, UIS. Little information has been known since then about this work that was launched, with contributions from the Departmental Government and the educational institution itself. (…) The Secretary of Health indicated that “last Wednesday we visited the ICA laboratory (Colombian Agricultural Institute) and on Thursday we went to the Udes (University of Santander). Ecopetrol also made its laboratory available, and the arrival of a team is expected to make the respective visit. “We do a kind of certification, if they meet all the standards. Subsequently, the National Institute of Health would do another certification and enable them to process samples,” explained the official.
Source: El Universal
Date: April 21
Headline: How does the historic drop in oil prices affect the city?
In a historic day, WTI oil entered negative value for the first time, while Brent crude fell 8.91%. El Universal spoke with experts on the subject. Yesterday, Texas oil (WTI), the benchmark in the United States, opened the day with a drop of 201%, reaching levels similar to those in 1999, below 13 dollars, a figure that already alarmed exporters. However, as the hours passed, its price plummeted even further. (…) “Brent dropped to a price of 25.7 dollars, an extremely low value for the Colombian case because Ecopetrol has to stop pumping when it has a reference below 30 dollars. There are already fields where they have to halt production because they would be producing at a loss, as the price is below what it costs them to obtain a barrel of crude,” points out the former minister.
Source: El Heraldo
Date: April 21
Headline: US Crude: historic collapse to less than USD1
Texas intermediate oil (WTI) experienced a historic collapse of 3051% and for the first time since statistics have been kept, it entered negative values, as the price of the US barrel fell to -37.63 dollars, with traders very concerned about a drop in demand due to the coronavirus pandemic that led to the collapse of crude. (…) After this drop, Wall Street closed in red and its main indicator, the Dow Jones Industrial Average, lost 2.441% and cut 592 points, settling at 23,650 points, dragged down by Boeing (-6.701%) and by oil companies Exxon Mobil (-4.721%) and Chevron (-4.201%), among other large ones.
Topics
Source: El Pilón
Date: April 20
Headline: Temporary taxes and tax reform. By: Darío Arregocés
The dilemma posed by the current pandemic has been resolved, and being aware that the economy must function for the benefit of man, not the other way around, we have another issue to resolve: that of taxes, which, in the context of this health emergency, the executive has decreed. One of them orders the deduction of a percentage of the salary earned by public servants according to the amount of their income, meaning those who earn more will have more deducted. (…) In a nation with tremendous inequalities, where informal work far exceeds formal work, with an economy that depends on the declining export of coal and oil, the outlook is bleak, and reactivating the economy will take time. In the meantime, another bomb is activated, the pension reform, which will significantly impact the social fabric.
Source: vanguardia.com
Date: April 20
Headline: Historic collapse of WTI oil, which is priced at less than 1.5 dollars due to low demand
Texas intermediate oil (WTI) experienced a historic collapse of 305 % this Monday and for the first time since statistics have been kept, it entered negative values. Oil futures collapsed below zero for the first time, as the increasingly deep economic turmoil caused by the coronavirus crisis leaves operators desperate to avoid receiving physical crude. (…) Since the beginning of the year, oil prices have plummeted due to the worsening effects of the coronavirus and a collapse in the original OPEC+ agreement. With no end in sight, and as producers around the world continue to pump, a major sell-off is occurring among operators who have no access to storage.
Source: diariolalibertad.com
Date: April 20
Headline: Oil falls below US$ marking a new historic low
Oil is registering minimum levels today due to the demand crisis caused by the pandemic worldwide. The May WTI crude contract (which expires on Tuesday) fell more than 40% to less than US$11 per barrel, the lowest levels since 1986. (…) It is worth noting that the price collapse is affecting the entire oil industry. Crude explorers closed 13% of the U.S. drilling fleet. In Colombia, Francisco Lloreda, president of the Colombian Petroleum Association, ACP, stated that the reduction in oil prices is having a global impact. He warned that the outlook is bleak, as there is nowhere to store crude and in the case of Colombia, there are closed wells.
Source: rcnradio.com
Date: April 20
Headline: In Colombia, they are already thinking about closing oil fields due to the price collapse
Francisco Lloreda, president of the Colombian Petroleum Association, confirmed that oil wells have already been closed in the country. The price of WTI oil, the benchmark for Colombia, suffered a historic drop this Monday of more than 20 %, falling below 11 dollars per barrel due to the coronavirus pandemic. In this regard, Francisco Lloreda, president of the Colombian Petroleum Association, said that this crisis is due to the collapse of global oil demand, which has fallen by around 30 million barrels, representing a 30 %. (…) Lloreda estimated that this crisis will mean that in 2021, Colombia will stop receiving between 12 and 15 trillion pesos. “For the rest of the year, prices are unlikely to rebound,” he pointed out.
Institutional
Source: El Tiempo
Date: April 21
Headline: Between February and March, the number of active drills in Colombia decreased by 28%
The most recent report from the Chamber of Oil Goods and Services (Campetrol) showed that by March, the number of exploratory drilling rigs globally suffered an annual contraction of 11.3 percent, and in the case of the United States, there was a 24.5 percent annual decline, according to Baker Hughes GE's Rig Count. Meanwhile, the drilling rigs used in the development of oil fields worldwide totaled 1,537 in March 2020, with a contraction of 12.7 percent compared to the same month in 2019. (…) On Monday, the Ministry of Mines and Energy indicated that due to the exceptional circumstances in the world and the fall in international crude prices, along with the prospect of an economic slowdown, the Government, through the National Hydrocarbons Agency (ANH), is advancing support measures for oil companies to ensure crude production and meet the agreed investment commitments for exploration and development of oil fields.
Source: El Colombiano
Date: April 21
Headline: Why is oil so cheap?
Yesterday at 1 PM, 4,800 pesos were enough to buy four bottles of water, half a pack of cigarettes, two almojábanas from El Rancherito, a beer, or a barrel of WTI benchmark oil. But the almojábanas, water, and even the beer are more useful than the crude itself: why? Because despite the fact that at the close of markets in the United States, WTI crude was priced at just over a dollar per barrel (about 4,800 pesos), acquiring that material these days is a bad business. The explanation lies in the fact that the industries that demand it, such as air and land transport, are stagnant, which is why companies and countries are not buying. (…) “But it would not be enough because the biggest problem is a substantial reduction in demand: 30 million barrels. At the time, the decision did not make waves and now we are seeing the consequences,” explained Amylkar Acosta, former Minister of Mines. For Acosta, however, the scenario is indeed worrying, as there are no signs of improvement in the next two months, which is “serious for the public finances of the Nation and the territories.”
Colombian Association of Oil and Gas