Strengthening the industry through growth plans, exploration, and exploitation of hydrocarbons, especially considering natural gas as a key fuel in the energy transition and one of the most in-demand worldwide, is a safe bet for Colombia.
Clearing up doubts about the direction the country's energy sector will take in the coming years is one of the first tasks for the Ministry of Mines and Energy, led by Minister Andrés Camacho. And after a year of total uncertainty, with unfavorable statements from high-ranking officials of the national government, the waters remain turbulent and demand to be calmed, with the certainty that only a clear energy policy can provide.
The sum of the multiple events occurring during this second half of the year, such as the ‘El Niño’ phenomenon, the exhaustion of regional transmission networks, the financial crisis of energy marketers, delays in renewable energy projects, and now, gas rationing on the Caribbean coast, is a ticking time bomb that requires prompt attention and action from the government.
First of all, it is urgent to unblock the renewable projects that are stalled in La Guajira, as well as to accelerate the entry of Hidroituango into the system. We must continue advancing in the expansion of a linear and robust infrastructure that guarantees the interconnection of renewable energies to the National Interconnected System (SIN); at this point, it is crucial that the energy transition policy in Colombia moves from good intentions to actions, so that the bottlenecks disrupting the sector's dynamics are overcome.
On the other hand, the controversial State of Emergency decree in La Guajira, which was recently overturned by the Constitutional Court but will have a deferred effect until 2024, will have significant repercussions on the sector, such as impacts on the cash flow of the company Air-e and, therefore, on its market on the Caribbean coast; increases of between 5 and 7 percent in energy bills, and the suspension of contracts from the reliability charge auctions for renewable projects, to mention a few.
Among the enormous challenges that Colombia faces in the coming decades is ensuring the stability of the energy system while making a responsible transition to a sustainable energy model. We agree that the participation of renewable energies in Colombia must be increased, but we also believe it is important to continue enhancing crude oil and gas resources to have backup energy and expand the export basket.
The recent gas crisis in the Caribbean region, triggered by technical problems occurring in the wells located in the department of Córdoba, is a clear signal of the need to strengthen the internal industry, prioritizing the exploration and exploitation of the abundant resources that exist offshore and on land. For now, it is urgent for the Executive to take measures to prevent the crisis from worsening and rationing from extending from the industrial sector to the residential sector.
While the global trend towards decarbonization is growing rapidly, it is misguided to think of abruptly abandoning the hydrocarbon industry, which is called to support the energy transition. We must end the double talk where oil, coal, and gas are rejected, but royalties are accepted. Reconciling the sector and the government is a definitive step to preserve energy security, and thus, as soon as possible, the Ministry must clarify the mining-energy policy and moderate the discourse regarding fossil fuels. It is essential to plan a national policy for the supply and provision of oil and gas, focused on significantly increasing the level of reserves, allowing us to maintain our self-sufficiency in hydrocarbons and the country's energy security.
Among the challenges facing the sector, the issue of high energy bills deserves special mention, which the government has not managed to contain, and which continue to rise with constant increases in the energy market. Current concerns must also include the arrival of the ‘El Niño’ phenomenon, the impacts on the cash flows of marketing companies, mostly public, and the exhaustion of transmission lines, which pose a significant threat to the system. In this delicate context, the alert raised by the electricity distributors' guild should not be underestimated, so it is necessary for the Executive to finalize alternatives that prevent a surge in service tariffs and guarantee its quality.
While the global trend towards decarbonization is growing rapidly, it is misguided to think of abruptly abandoning the hydrocarbon industry, which is called to support the energy transition. We must end the double talk where oil, coal, and gas are rejected, but royalties are accepted.
José David Name Cardozo, Senator of the Republic
In light of the great uncertainty that exists, we call on the Government to conjure new measures with the purpose of avoiding rationing in the energy supply in the Caribbean region and Chocó. From the Coast, we ask that processes and investments be accelerated to guarantee electric service, and that the expansion works that, with their delays, pressure the system be unlocked.
The outlook is not encouraging at all, as there are many problems and immense, though not impossible, challenges facing the sector. Strengthening the industry through growth, exploration, and exploitation plans for hydrocarbons, especially considering natural gas as a key fuel in the energy transition and one of the most in-demand in the world, is a safe bet for the country.
Strengthening the industry through growth, exploration, and exploitation plans for hydrocarbons, especially considering natural gas as a key fuel in the energy transition and one of the most in-demand in the world, is a safe bet for the country.
José David Name Cardozo, Senator of the Republic
Certainly, hydrocarbons and unconventional renewable energy sources (Fncer) must positively combine in order to take advantage of the attributes that the fuel provides to consolidate a safe energy transition. Building on what has been built and continuing to strengthen the sector, through growth, exploration, and exploitation plans for hydrocarbons, especially enhancing natural gas as a key fuel, is crucial to guarantee our energy self-sufficiency.
Colombian Association of Oil and Gas