A public policy with guarantees of energy supply and fiscal sustainability is possible within the framework of management in the face of climate change

At the beginning of the V Summit on Oil, Gas, and Energy, the organizing guilds of the event call for energy policy, which includes hydrocarbon policy, to be a tool to promote equity, overcome poverty, and foster economic and social growth in the country, within a framework of environmental protection and climate change management.

• Energy policy, which includes hydrocarbon policy, must be a tool to promote equity, overcome poverty, and foster economic and social growth within a framework of environmental protection.
• In 2021, companies in the oil, gas, and liquid fuels industry, including private ones, are estimated to have contributed around $36 trillion to the country, and for 2022, a contribution of $61 trillion is expected. These resources are fundamental for developing government programs and advancing the fight against poverty in the regions.
• The just energy transition is an ongoing process that will take place over the coming decades, but global reality has shown the lessons learned to plan and organize the energy transition.
• In this context, national and international experts, entrepreneurs, national and regional government officials, among other actors, will analyze and discuss the challenges of the hydrocarbon sector globally and in Colombia from November 15 to 18 at the V Summit on Oil, Gas, and Energy.

This is considering that, currently, there is great uncertainty about the future of the hydrocarbon sector in the country, despite the fact that the oil, gas, and liquid fuels industry significantly contributes to the finances of the national government and the regions, and its fiscal contributions leverage investments in strategic socio-environmental projects that help reduce inequalities and energy poverty, in compliance with the Sustainable Development Goals (SDGs).

In this context, the organizing guilds of the V Summit, the Colombian Association of Oil and Gas (ACP); the Colombian Chamber of Oil, Gas, and Energy Goods and Services (Campetrol); the Colombian Association of Geologists and Geophysicists of Oil (ACGGP); and the Colombian Association of Engineers (ACIEM), reiterate that the sector is ready to continue contributing and being a source of development for Colombia, and for this, the country needs to have a public policy that promotes the sustainability of the energy sector, of companies dedicated to the exploration and production of oil and gas, including private ones, and allows leveraging its potential to drive the energy transition and transformation of Colombia.

The fiscal contribution of upstream, midstream, and downstream companies, plus the dividends from Ecopetrol, is estimated to have totaled $36 trillion in 2021 and that for 2022 it will be $61 trillion thanks to the increase in oil prices. These resources are fundamental for financing government programs, including those that meet basic needs in the regions, and favor their economic dynamics.

“This industry has been an ally of Colombia's progress and of thousands of Colombians in the regions where it has operated, and it is ready to continue building and contributing to defining the roadmap for the transition, within the framework of the great national social dialogue; while we hope to continue exploring and producing the oil and gas key to the country's energy security and to leverage the resources generated by the sector to benefit communities with social and environmental projects and support the energy transition,” said Francisco José Lloreda Mera, president of the Colombian Association of Oil and Gas (ACP).

In the coming years, the energy transition at a global level and in Colombia will play a fundamental role, therefore, the hydrocarbon sector is also committed to managing and mitigating climate change; an example of this is that since 2018, up to 2021, the hydrocarbon sector has developed 92 projects associated with climate change (mitigation, adaptation, and governance), representing an investment of $3.5 trillion.

“The sector is convinced of the need to make a just and orderly energy transition, and in this sense, the ongoing diversification is the appropriate path to achieve the desired transition, ensuring the competitiveness and macroeconomic conditions of the country,” explained Nelson A. Castañeda, executive president of Campetrol. 

Challenges of the hydrocarbons sector in the coming years

According to the organizing guilds of the Summit, Colombia needs a responsible energy policy that contributes not only to ensuring a secure energy supply but also to macroeconomic and fiscal stability, and that takes into account the needs of the regions in terms of royalties and productive transformation. To achieve this, it is key to continue exploring and producing national oil and gas, and exporting hydrocarbons to have 

fundamental resources for the Nation, all while advancing in the transition and strengthening the fight against climate change. 

Precisely, during these four days, Bogotá will be the stage for the V Summit on Oil, Gas, and Energy: geopolitics, transition, and energy security, which will bring together the most important actors in the sector to discuss the challenges posed by the current global and national situation for a sector fundamental to macroeconomic stability and the social development of Colombia.

Check the agenda at https://cumbrepetroleoygas.com/.