ACP as a source of information
Source: Portafolio – National
Author: Francisco José Lloreda Mera*
Date: March 12
Headline: Uncertainty, risk, and opportunity
The last few days have not been easy for the global economy; the impact of COVID-19 on various markets and the fall in international oil prices, due to Russia's refusal to cut production along with Saudi Arabia and OPEC member countries, to partially counteract the effects of the virus on hydrocarbon demand, have generated a global uncertainty that we are just beginning to discern. (…) In the case of oil, it is worth analyzing the anger of the Russians and Saudis. The latter are upset because they expected Putin's support for the proposed cut. The Russians, in turn, are upset because the United States and other non-OPEC producing countries have made no effort to reduce oil supply now, nor in the recent past. On the contrary, the United States has become the largest producer, with 13 million barrels per day thanks to shale oil production. *President of the ACP. Responded in: portafolio.co (March 11).
Source: La W Radio – National
Date: March 11
Source: Radio Red – Regional
Date: March 11
Source: Radio Red – Regional
Date: March 11
Source: Voz Claveriana – Regional
Date: March 11
Source: Voz Claveriana – Regional
Date: March 11
Source: wradio.com.co – National
Date: March 11
Headline: The 2021 budget would come with a strong squeeze due to the global economic crisis and Coronavirus.
This is revealed by a circular from the Ministry of Finance sent to all entities of the Colombian State, which warns that the budget programming “must be carried out in a global context that shows nascent signs of stabilization that could persist.” That is to say, the economic situation is complicated and this undoubtedly has a direct effect on Colombian figures. (…) It is worth remembering that only the drop in oil prices has a direct impact on the Government's accounts, which calculated its budget with a barrel at US$60.5 and is now below US$40. According to the Colombian Petroleum Association, for every dollar below the projected outlook, the country stops receiving 400 billion pesos.
Source: radiosantafe.com – Regional
Date: March 11
Headline: The decision of the Council of State on fracking could end speculation.
A ruling from the Council of State on the exploration of unconventional hydrocarbon deposits could put an end in the next four months to a long dispute between energy-producing companies and activists opposing fracking. Commercial production from unconventional deposits, such as shale gas and coal bed methane, could be authorized if the Council of State decides in favor. These activities are currently not allowed in the fourth largest economy in Latin America. (…) “For companies, it has not been easy since some of them have contracts signed for 10 years and have had to wait a long time,” said Francisco José Lloreda, president of the Colombian Petroleum Association, to Reuters. The ACP stated that four potential pilot projects in the departments of Cesar and Santander could generate an investment of 5 billion dollars and eventually increase oil production by 450,000 barrels per day.
Source: lahoradelaverdad.com.co – Regional
Date: March 11
Lloreda explained that the situation being presented is the combination of two factors, one of them a drop in demand, that is, in oil consumption especially in China and Asian countries, this drop began a couple of months ago due to decisions made because of the coronavirus. “At this moment, Brent is at 35 – 36 dollars a barrel and what we are all waiting for is a few days to see if the markets adjust and to have greater clarity on the outlook,” said Lloreda. He added that Colombia sells oil at a discount that can be 6, 7, or 8 dollars per barrel, which puts the country in a much more complex price situation than what is seen in international references.
Source: infobae.com – National
Date: March 11
Headline: The decision of the Colombian court on fracking could end speculation before July.
A ruling from the Council of State on the exploration of unconventional hydrocarbon deposits could put an end in the next four months to a long dispute between energy-producing companies and activists opposing fracking. Commercial production from unconventional deposits, such as shale gas and coal bed methane, could be authorized if the Council of State decides in favor. These activities are currently not allowed in the fourth largest economy in Latin America. (…) “For companies, it has not been easy since some of them have contracts signed for 10 years and have had to wait a long time,” said Francisco José Lloreda, president of the Colombian Petroleum Association, to Reuters. The ACP stated that four potential pilot projects in the departments of Cesar and Santander could generate an investment of 5 billion dollars and eventually increase oil production by 450,000 barrels per day.
GREMIO
Source: El Tiempo
Date: March 12
Headline: The dollar breaks another record and stock markets continue to fall.
The strong effects of the coronavirus, declared yesterday as a pandemic by the World Health Organization (WHO), continue to wreak havoc in global markets, which returned to red numbers, both in the world and in Colombia. (…) In Colombia, due to the drop in crude oil and nervousness, the dollar jumped again, this time by 54 pesos, to impose a new historical mark, with the official exchange rate at 3,835.15 pesos. Even at one point during Wednesday's trading, transactions were made at over 3,900 pesos, as the maximum price of the currency for the day was 3,908 pesos. (…) The stock of Ecopetrol fell 4.29 percent, to 2,230 pesos, while the most affected was Avianca Holdings, which dropped 13.21 percent, to 1,215 pesos.
Source: El Tiempo
Date: March 12
Headline: Amid the tension, firms prepare a multimillion-dollar distribution of profits.
While some investors flee from assets like stocks, fearing greater devaluation caused by the declared covid-19 pandemic, companies are ready to hold their shareholder meetings, where approval is expected for the payment of millions in dividends based on the juicy profits achieved in 2019. (…) “We are convinced that a scenario of oil below 40 dollars per barrel poses significant challenges to the country and, therefore, to the stock market. At the moment we find ourselves, like all investors, trying to determine whether this scenario will be something transitory or a new medium-term normal…” (…) Among these, according to preliminary estimates from the brokerage Casa de Bolsa, the dividend earnings of Grupo Éxito stand out, which would exceed 15.3 percent; those of Corficolombiana, which will be above 8.5 percent; Ecopetrol, more than 7.5 percent; BVC, 7.4 percent; Celsia, 6.6 percent; Terpel, 6.6 percent, and Cemargos, 6 percent, among others.
Source: La República
Date: March 12
Headline: This is the economic package to counteract Covid-19
While the World Health Organization declared Covid-19 a pandemic, authorities in Colombia confirmed that the disease is advancing and already registers nine infected. Therefore, the Government adopted a series of measures to counteract the effects that the virus will have on the economy, to which are added the strategies of the private sector to prevent new infections. (…) In the case of Ecopetrol, for example, the company has opted for training and education for all workers, contractors, and families, as well as special and stricter protocols for workers at ports. It also established a home isolation period for those arriving from international trips, with periodic health checks.
Source: La República
Date: March 12
Headline: The Colcap index devalued 4.761%
This Wednesday, the Colcap index of the Colombian Stock Exchange (BVC) recorded another significant drop, with a negative variation of 4.761% that placed it at 1,295.46 points and continues with the turbulence so far in March. (…) During the third session of the week, the most traded stocks in the Colombian Stock Exchange were those of Ecopetrol (1,431.697 million), Grupo Energía Bogotá (GEB) (1,429.188 million), ISA (1,416.603 million), and the preferred shares of Grupo Aval (1,411.193 million). (…) Additionally, Raúl David Moreno, director of market strategies at Global Securities, warned that the Colcap could continue on a downward path during the second quarter of the year due to the price war of oil initiated by Russia and Saudi Arabia.Source: La República
Date: March 12
Headline: Petrobras and Ecopetrol, the most affected oil companies
“Russia is not willing to further reduce oil production.” These were the words spoken by Alexander Novak, Russia's Minister of Energy, during the meeting held by OPEC, which became the prelude or trigger for the start of a war for control of oil prices. (…) Based on this, Germán Espinosa, executive president of Campetrol, recalled that “the alliance between OPEC and Russia has partially controlled the market since 2008, once the financial crisis was overcome. This is thanks to the dominant position held by the expanded cartel (OPEC+), which of the 100.7 million barrels produced globally per day, Russia and Saudi Arabia contribute 21 million, that is, 21% of the world crude supply.” (…) This type of measure has led the oil market to be going through a bad moment that is also reflected in other companies in the decline of shares of Repsol, Chevron, Exxon Mobil, also due to the growing number of Covid-19 cases that is causing an economic slowdown.
Source: Portafolio
Date: March 12
Headline: Bad news continues for markets around the world
Yesterday, a new day of significant losses was recorded, exceeding 20% in Wall Street. The intensification of the oil price war hit its quotation. Bad news continues to accumulate for global markets as the spread of the coronavirus worsens and its impact on the international economy becomes more evident every day. Just yesterday, the declaration of covid-19 as a pandemic by the World Health Organization joined other factors that again pushed the quotations of world markets down. In the United States, Wall Street indices presented another ‘black day’ in which they confirmed that they are leaving behind their 11 years of virtually uninterrupted bullish trend after the economic crisis of 2008, as losses from February's highs are already around 20%.
Source: El Colombiano
Date: March 12
Headline: How to invest in times of volatility?
The world's markets have not been indifferent to the announcement made by the World Health Organization (WHO) that the coronavirus is now a pandemic, and to the lack of agreements among the main oil producers. Volatility and nervousness have been common denominators in the week in this field. (…) For its part, oil, one of the goods that has cemented instability, lost again in its prices: 4 %, in the case of the West Texas Intermediate (WTI) Reference and 3.8 % for Brent, which is the one Colombia uses for its calculations, according to information from the AFP Agency. “If oil prices drop, the dollar is pressured upwards and foreign investors reduce their exposure in the local market,” explained Juan David Ballén, Director of Analysis and Strategy at Casa de Bolsa.
Source: El Frente
Date: March 12
Headline: Santander will have a business attention center
With the aim of continuing to strengthen the entrepreneurship and innovation ecosystem in the department of Santander, the Bucaramanga Chamber of Commerce, CCB, together with the Colombian Petroleum Institute, joined the C Emprende program of INNpulsa Colombia that will bring to the region the most important business attention center in eastern Colombia. This space aims to benefit around 1,500 entrepreneurs during the first year, made possible by the coordination of efforts among entities such as: the CCB, the Government of Santander, the Bucaramanga Mayor's Office, the National Learning Service SENA, ProColombia, the Barrancabermeja Chamber of Commerce, Imebú, and Ecopetrol, which, through the Colombian Petroleum Institute, offered a physical location with more than 3,600 square meters to develop this project.
Source: El Heraldo
Date: March 11
Headline: Government: Ecopetrol can face crude volatility
Ecopetrol has a solid operational and financial situation to face the current volatility in the international crude price, affirmed the Ministries of Finance and Mines in a joint statement. “Ecopetrol is a resilient company and better prepared than in previous situations to face the current international scenario, after having carried out a transformation and efficiency program that has allowed it to achieve savings of more than $13 billion pesos in five years,” the statement notes.
Source: El Heraldo
Date: March 11
Headline: Oil prices recover and halt the dollar's upward wave
After the storm unleashed by the fall in international oil prices that impacted the world's financial markets and drove the dollar in Colombia above $3,800 on a “black Monday,” a relatively calm Tuesday was experienced. In yesterday's session, Brent crude, the reference for Colombia, and WTI recorded rebounds that led the dollar to moderate its upward trend in Colombia to reach an average price of $3,780.30. (…) In the Colombia Stock Exchange (BVC), Ecopetrol's stock closed with a drop of 1.69%, lower than the 20.07 recorded last Monday, while the Colcap index had a slight drop of 0.96%.
Source: Vanguardia Liberal
Date: March 11
Headline: Ecopetrol contracted $1.6 billion with local suppliers
The most recent results presented by Ecopetrol regarding contracting in the Central Regional, corresponding to the year 2019, show round numbers for suppliers in the area. So much so that, according to the state oil company, contracts for goods and services worth $1.6 billion were generated with suppliers from the eight departments that make up the Central Regional (Antioquia, Bolívar, Boyacá, Caldas, Cesar, Cundinamarca, Norte de Santander, and Santander). (…) In fact, Ecopetrol's accounts show that the Central Regional generated a total of 15,088 job links through its contracting companies, of which 88% (13,289 positions) were local labor.
Source: La Nación
Date: March 11
Headline: Oil price war. By: Germán Palomo García
Russia's refusal, a member of OPEC since 2016, to support a reduction in oil production of 1,500,000 barrels per day, caused a collapse in oil prices after Saudi Arabia's response to Putin by lowering its prices, contrary to its initial proposal to reduce production to prevent, precisely, a significant drop in prices. For Russia, according to its representative Alexander Novak, maintaining high prices was giving the opportunity to the United States to obtain more revenue from shale oil, obtained through fracking, which turned the USA into a major global exporter. (…) Ecopetrol has just presented an excellent financial result in 2019 that the current crisis could undermine if the current war takes a long time and many shareholders could sell their shares, which is already not advisable.
Source: Extra Llano
Date: March 11
Headline: Indigenous people attack oil wells
A group of natives caused a blackout at the facilities of an oil company in the Rubiales area. It seems they entered abruptly, putting the lives of the workers at risk. The situation in the municipality of Puerto Gaitán, regarding the case of councilman César Pérez and two other citizens who are involved in an investigation for alleged extortion, is increasingly raising tensions among indigenous communities, who are protesting and have announced that the minga will continue until their objectives are met. (…) In response to the complaints filed by Ecopetrol, the indigenous people have stated that they will continue protesting until national and departmental authorities speak on the matter, so that they can gather and put an end to the problems affecting ethnic communities, which feel persecuted by oil companies due to political and economic interests, according to their complaints.
Source: Caracol Radio
Date: March 11
Source: Caracol Radio
Date: March 11
Topics
Source: La República
Date: March 12
Headline: Analysts believe that the dollar at $3,800 will remain until April.
The average price of the dollar reached a new historical high this Wednesday, as it reached $3,836.21 after Saudi Aramco announced an increase in its oil production and after more cases of Covid-19 were confirmed in the country, prompting the Government to announce new measures. (…) Raúl Moreno, director of market strategies at Global Securities, mentioned that with the current situation in the oil market, there has been a strong depreciation of the exchange rate that could lead to levels close to $4,000, although it would be a temporary price that they do not believe will last long. (…) Camilo Durán, senior analyst at Credicorp Capital, agreed that the short-term outlook does not seem encouraging, as the collapse of oil prices along with the arrival of Covid-19 in the country will generate pressures on the economy.
Source: La República
Date: March 12
Headline: Coronavirus. By: José Ignacio López
In recent weeks, the bad news associated with the coronavirus has captured the attention of financial markets and the general public. The virus, which was initially thought to have an adverse effect on China's production and generate a disruption in the global value chain, is now additionally having a negative impact on developed economies as the infection rate in many industrialized countries has been increasing. (…) Many analysts have underestimated the effect of the coronavirus, and due to the recent oil price war, they have placed the disease in a secondary position in their analysis. Evidence in the last month suggests otherwise: beyond the drop in oil prices due to increased production from Saudi Arabia and other oil-producing countries, the relevant shock is that of the virus and its adverse effect on both global supply and demand.
Source: La República
Date: March 12
Headline: Monetary challenge of the Coronavirus. By: Nelson Vera
In the last two weeks, the largest spread of the coronavirus seems to have dashed hopes for an acceleration of the economy due to the dual supply-demand shock, now projecting growth of only 2-2.5% in 2020 (vs. 3% in 2019). In the first case, the disruption of global value chains has already extended from Asia to Europe (large automakers) and, to a lesser extent, to the U.S. (…) This lower demand has already reduced commodity prices, adding to the recent price war between Saudi Arabia and Russia, collapsing the price of Brent oil to $30/barrel and it looks almost impossible to achieve averages close to $60/barrel for all of 2020.
Source: Portafolio
Date: March 12
Headline: How does the coronavirus affect Latin America? By: Luis Felipe López-Calva
Latin America and the Caribbean are significantly linked to China, as economic relations between the two have surged in recent decades. Image: UNDP Peru. The outbreak of the coronavirus COVID-19 is a new potential source of volatility and a threat to the macroeconomic stability of Latin America and the Caribbean. (…) Its six main trading partners are Brazil, Argentina, Chile, Peru, Colombia, and Venezuela, whose exports are concentrated in four products, which represent 75% of Latin American exports to China: copper, soybeans, crude oil, and iron ore.
Source: El Nuevo Siglo
Date: March 12
Headline: OPEC pressures Russia and oil prices fall again
Saudi Arabia and the United Arab Emirates, two allies within OPEC, intensified pressure yesterday in the war with Russia over its intention to flood the oil market, causing prices to fall again. Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), is pressuring Russia (the second-largest producer in the world but not a member of OPEC) to accept a coordinated reduction in global production to offset the decline in demand due to the coronavirus.
Source: Hoy Diario del Magdalena
Date: March 12
Headline: Pilot tests for fracking. By: Mauricio Cabrera Galvis
With decree 328 of 2020, the Government regulated the implementation of pilot research projects on hydrocarbon exploitation using hydraulic fracturing techniques (fracking) and, as expected, the controversy over the use of these techniques in Colombia has resurfaced. In particular, it is claimed that the decree is illegal because the pilot projects do not have the required ‘social license.’ The debate over the use. (…) 6. The above does not mean that fracking can be used at any cost and without regard to the environmental damage it may cause. The Council of State stated that fracking should only be authorized if it can be done in a safe, responsible, and sustainable manner for communities and the environment.
Institutional
Source: El Espectador
Date: March 12
Headline: Does the pilot fracking decree violate a court order?
An incident of contempt alleges that the decree regulating the Comprehensive Pilot Research Projects (PPII) does not comply with the order given by the Cundinamarca Court to include a series of requirements for the protection of water and human health, among others. On February 28, the Government issued the decree regulating the Comprehensive Pilot Research Projects (PPII) on fracking, as a way to collect concrete data on the impacts and risks generated by its use for hydrocarbon exploitation in unconventional deposits. (…) According to Diazgranados, there are risks that still exist, even for the experimental phase, such as those exposed by the Court and others. What are they? For example, that the necessary water levels for horizontal hydraulic fracturing are taken into account. “This is urgent, given that the areas presented by the ANH (National Hydrocarbons Agency) are mainly located in the middle and upper part of the Magdalena valley, which are regions identified as vulnerable to climate change and particularly vulnerable to drought periods related to the El Niño phenomenon,” says the resource.
Source: La República
Date: March 12
Headline: There would be a head at the ANH this week.
Following the departure of Luis Miguel Morelli from the presidency of the National Hydrocarbons Agency (ANH) on February 17, it was announced that José Armando Zamora Reyes would return to the position of president of the institution, which he held from 2003 to 2011. This, after his resume was already published in the records of the Presidency, and it is now expected that he will take office this Friday.
Source: La Patria
Date: March 12
Headline: Users check gasoline prices
The recurring question that drivers in Manizales were asking yesterday morning at gas stations was: what time will fuel prices drop? The response from vendors: after noon. The questions arose after the Ministry of Mines announced a reduction starting yesterday at midnight (12:00 m) in the reference price of fuels for the 13 main cities in the country. $126 for regular gasoline and $123 for ACPM. (…) Carlos Arturo Muñoz, president of the National Federation of Fuel and Energy Distributors (Fendipetróleo), stated that this is all part of the competition that remains within the monitored freedom approved by the national government regarding fuel prices.
Source: La Opinión
Date: March 12
Headline: Fuel prices have dropped
Since yesterday, the new reference prices for fuels in the country, set by the Ministry of Mines and Energy, have come into effect. The reduction is due to the fall in international oil prices in global markets. However, no price changes were assigned for Cúcuta.
Source: La Crónica del Quindío
Date: March 12
Headline: ABC of the local economic impact of the dollar rise and oil fall
Pros for remittances and spending by foreign tourists; cons for foreign trade. Coffee would benefit if the harvest were currently in effect. Given the economic dynamics experienced these days worldwide, where the dollar and euro have reached historic prices and oil has seen a decline (…) A financial sector expert in Quindío explained that the drop in oil prices is due to a trade war between the countries associated with the Organization of Petroleum Exporting Countries, OPEC, and Russia. (…) The Ministry of Mines and Energy established an average drop of $104 in the price of fuel in Colombia, leaving the gallon of gasoline at $9.159 and the gallon of ACPM at $8.952.
Source: laschivasdelllano.com
Date: March 12
Headline: National Authority of Environmental Licenses restructures and specializes its human resources
Through Decree 376 of the Presidency of the Republic, the National Authority of Environmental Licenses (ANLA) will expand its staff from 73 to 499 officials, who will enter the entity in phases, starting this year and finishing in 2022, with the aim of continuing to advance in institutional strengthening and having qualified, technical, specialized, and permanent human talent committed to sustainable development and biodiversity conservation. (…) To advance in the fulfillment of these strategic lines, the new structure will consist of four sub-directorates: the Environmental Citizen Participation Mechanisms, Environmental License Evaluation, Environmental License Monitoring, Environmental Instruments, Permits and Procedures, and the Administrative and Financial.
Colombian Association of Oil and Gas