ACP as a source of information
Hydrocarbons Sector
Source: El Tiempo
Date: July 30
Headline: Three evils that have Ecopetrol on alert
The activity of illegal groups is putting Ecopetrol in trouble. And in addition to the attacks on oil and multipurpose pipelines in Arauca, Norte de Santander, and Nariño, and the burning yesterday of four pools in the Las Acacias village of the municipality of Arauquita (Arauca), the eternal problem of valves that siphon fuel from the pipelines continues to add up. So far this year, 498 illegal valves have been detected on the Caño Limón-Coveñas (29) and Transandino (469) pipelines. This represents 2.3 valves per day just in the pipelines that transport crude oil, a proportion very similar to that of 2018, when 1,007 illegal connections were recorded. (…) On another note, Ecopetrol and its transportation subsidiary Cenit reported that unidentified individuals deliberately set fire yesterday to four pools containing 2,600 barrels of oil.
Source: El Tiempo
Date: July 30
Headline: The dollar approached 3,300 pesos again yesterday
In a new escalation, the dollar reached very close to touching 3,300 pesos again this Monday, after registering a maximum trading rate of 3,286.8 pesos, leaving its price 13.2 pesos from that level. (…) The rebound that the dollar has brought since last week occurs amid a strengthening of the value of the barrel of oil in international markets. Indeed, the price of crude oil rose this Monday in a market that expects a reduction in interest rates from the States and the resumption of trade negotiations between Washington and Beijing. In London, the North Sea Brent barrel for September delivery gained 25 cents and ended at 63.71 dollars, while in New York, the WTI barrel increased by 67 cents to 56.87 dollars.
Source: El Espectador
Date: July 30
Headline: What is the status of fracking in the world?
In addition to declaring moratoriums or banning fracking, countries are restricting the exploitation of fossil fuels. All of this has generated a trend towards the transition to unconventional renewable energies: solar, wind, geothermal... Worldwide, many countries have banned or declared a moratorium on fracking while reviewing the scientific evidence regarding its risks. (…) In 1998, Mitchell Energy achieved the first commercially viable extraction of shale gas, and since then fracking in unconventional deposits has expanded in the United States. (…) In 2018, the Council of State of Colombia declared a judicial moratorium on fracking by temporarily suspending the regulatory framework for this technique. However, the discussion remains active in the courts and in Congress.
Source: La República
Date: July 30
Headline: Fracking. By: Carlos Ronderos
I would agree with fracking if by fracking we mean the obligation of the brides' parents to wear a tailcoat for their daughters' wedding. Otherwise, I join the majority who defend environmental conservation and warn of the environmental dangers of oil and gas extraction practices by unconventional methods. But not only for that reason, but because advancing in that practice tells us a lot about the economic model that the country pursues and the role that the State is expected to play in society with all the consequences that this entails. (…) Oil, like everything that lies underground, belongs to the Nation, both in Colombia and in all countries of the world, and becomes an important source of fiscal resources, whether through the monopoly on extraction, through the profits of state-owned companies that exploit the resources, or through royalties.
Source: La República
Date: July 30
Headline: Oil: prices, volumes, and Ecopetrol. By: Sergio Clavijo
The price of oil will average around US$69/barrel-Brent during 2018 and 2019. This level seems close to global equilibrium, except for the volatility that tends to appear when there are news about sanctions on Iran or the collapse in the productions of Venezuela and Libya (already quite structurally affected). (…) Currently, it is estimated that of the US$5,000 million annual oil investment in Colombia, 80% goes to production and only 20% (US$1,000 million) is allocated to seeking new wells. (…) Although this figure has improved marginally compared to the 5.3 years of 2016, this occurs mainly through “improvements in recovery” of existing wells, rising from 15% to 18% (Cusiana-Cupiagua, discovered in 1991). (…) What is then required to ensure that the market has appropriate readings of the performances in Ecopetrol is: iv) advance the pilot fracking plans to demonstrate (with that good leadership from the Min-Minas-Energy) that these are, even, more environmentally friendly than the obsolete conventional fields…
Source: Portafolio
Date: July 30
Headline: ‘We will start oil promotion in six countries’
Luis Morelli, president of the ANH, said they will go to China, India, Australia, Korea, South Africa, and the United Kingdom to invite oil companies to invest in Colombia. For more than 15 years, the country has not gone out to offer Colombian oil operations in international scenarios. But in the first weeks of 2020, the National Hydrocarbons Agency (ANH) will begin to develop a proactive strategy in several countries around the world to invite them to invest in the sector. (…) Last year I was in India presenting to the government of that country the benefits of the PPAA. Representatives from ONGC Videsh stated that they wanted to grow their operation in our country as the demand for hydrocarbons in theirs was increasing rapidly. A similar situation is happening with China.
Source: Portafolio
Date: July 30
Headline: About 500 illegal valves detected in the Cenit network
Not only the blasting of oil and multipurpose pipelines in the departments of Arauca, Norte de Santander, and Nariño is causing more than one headache for the Colombian oil company Ecopetrol, but also the illegal valves in the infrastructures have set off alarms. The continuous actions of groups outside the law on the pipeline that transports crude oil and fuels in the mentioned departments have put authorities, Ecopetrol, and its subsidiary Cenit on alert. So far this year, 498 illegal valves have been detected on the Caño Limón – Coveñas (29) and Transandino (469) pipelines. This represents 2.3 valves per day just in the pipelines that transport crude oil, a proportion very similar to that of 2018 when 1,007 illegal connections were recorded.
Source: Portafolio
Date: July 30
Headline: They burn 4 pools with crude oil
Not only the infrastructure that Ecopetrol uses for the transportation of crude oil and fuels in Arauca has been targeted for theft through illegal valves by groups outside the law, but also the attacks against other structures of the same system. Yesterday, in the early hours (5:00 a.m.), unidentified individuals deliberately set fire to four pools containing 2,600 barrels of oil in the Las Acacias village of the municipality of Arauquita, in the mentioned department. (…) The pools with crude oil are part of the contingency plan to address repairs to the Caño Limón-Coveñas pipeline, where 25 attacks have occurred in 2019, of which 15 have been in Arauca.
Source: Portafolio
Date: July 30
Headline: 2020 Budget: the margin for maneuver will be minimal
With the submission to Congress of the General Budget of the Nation (PGN) law for 2020, the annual countdown for its approval in Congress began yesterday. For next year, the Government proposes a total PGN of $271.7 trillion, indicating that it would grow by 5% compared to the approved amount for 2019, which was $259 trillion. (…) Likewise, “it is estimated that oil prices will not return to the long-term levels forecasted years ago, but will remain at levels similar to those projected as follows: US$65.5 in 2019; US$67.5 in 2020 and US$70 starting in 2021.”.
Source: El Nuevo Siglo
Date: July 30
Headline: They set fire to four pools with more than 2,600 barrels of oil
The deliberate fire of four pools containing 2,600 barrels of oil in the Las Acacias village of the municipality of Arauquita, Arauca, was reported by Ecopetrol and the National Army. According to the state-owned company, the blockades recorded in the area prevent emergency response by firefighters and technical personnel, generating serious risks for the communities in that area, workers, and the environment. Ecopetrol explained that the pools with crude oil are part of the contingency plan to address repairs to the Caño Limón-Coveñas pipeline, where 25 attacks have occurred so far this year, of which 15 have been in Arauca.
Source: El Colombiano
Date: July 30
Headline: The death trampoline in Putumayo. By: Cristian Miguel Cabrera R.
The Putumayo department is one of the richest at the national level: it has oil deposits and diverse flora and fauna. There are 283,197 people living there who are disconnected from the rest of the country due to poor road conditions. The death trampoline, located within the mountainous region of Putumayo, connects the towns of Mocoa, which is at 600 meters above sea level, with San Francisco at 2,100 meters above sea level, and it is the only route that connects the departments of Nariño and Putumayo.
Source: Vanguardia Liberal
Date: July 30
Headline: In Arauca, the community incinerated 2,600 barrels of crude oil from Ecopetrol.
At least 2,600 barrels of oil that were stored in four pools were incinerated yesterday during a protest that took place in Arauca, bordering Venezuela, the Army reported. The Institution detailed in a statement that the incident occurred after authorities arrived in the area to control a demonstration in the Las Acacias village, which is part of the municipality of Arauquita, where Ecopetrol workers were repairing the Caño Limón-Coveñas pipeline. (…) The company added that the blockades prevented firefighters and technical personnel from the company from addressing the emergency this morning.
Regional News
Source: prensalibrecasanare.com
Date: July 30
Headline: Casanare Air Group participates in emergency response for oil pool fire in Arauca.
Following the conflagration of four pools containing 2,600 barrels of oil in the Las Acacias village of the municipality of Arauquita, the Casanare Air Group (GACAS) is participating in the response and control tasks for the emergency. The Colombian Air Force has provided support to Ecopetrol and its transportation subsidiary Cenit with air escort, leaflet distribution, and control and surveillance tasks using AH-60 ‘Arpía’ helicopters. In light of the constant protests against oil companies, which led to the fire set by unidentified individuals, the Air Force distributed 3,500 leaflets with information to encourage environmental care, which has been highly compromised by the events that occurred in recent hours.
Source: Extra Llano
Date: July 29.
Headline: They evaluated royalty projects.
Satisfied with the results of the comprehensive visit conducted by the National Planning Department (DNP) to follow up on the projects financed with resources from the General System of Royalties, Governor Marcela Amaya declared at the end of the meeting where the positive results of the process in the department were announced. (…) Finally, she recalled that she represents the governors before the DNP and the ministries of Mines and Finance for the reform that will be made to the General System of Royalties, where an increase of 30 percent for producers is being proposed. “We would like the percentage to be higher, but there is a political reality that must be understood, and that is that it will not be easy to approve in Congress the removal of resources from territorial entities that are not producers,” the governor emphasized.
Source: Ondas del Meta.
Date: July 29.
Colombian Association of Oil and Gas