ACP as a source of information
Source: lafm.com.co – National
Date: March 10
Headline: The attitude of the Russians is incomprehensible: Colombian Association of Petroleum
The failed agreement between Russia and the Organization of the Petroleum Exporting Countries (OPEC), which sought to reduce oil production to maintain crude prices and prevent them from falling due to the low demand caused by the spread of the coronavirus, resulted in prices plummeting to historic levels of up to 30%. (…) In a dialogue with La FM, Francisco José Lloreda, president of the Colombian Association of Petroleum, highlighted that this Tuesday there was a recovery in the price of Brent oil; however, he disagreed with Russia's attitude towards the situation currently facing the economy.
Source: llanera.com – Regional
Date: March 10
Headline: The Government of Meta led a meeting with regional leaders «oil and gas industry»
The acting governor of Meta, Fernando Rivera, participated in the meeting with regional leaders ‘Oil and Gas Industry’, a space for dialogue between national, departmental, and municipal governments with companies in the hydrocarbons sector regarding the bill that regulates legislative act number 05 of 2019 and the General System of Royalties (SGR). “We made a request to the National Hydrocarbons Agency (ANH) and the national government to establish direct contact with the 29 mayors and contribute together to the reform of the General System of Royalties and the legislative act that will be debated in the Congress of the Republic,” Rivera stated. (…) Finally, Rafael Herz, vice president of Operations and Sustainability of the Colombian Petroleum Association, emphasized this first approach with the new leaders to offer them support in the development of their management.
Guild
Source: El Tiempo
Date: March 11
Headline: Tensions rise over natural gas supply
While the country is currently consuming larger amounts of gas for energy generation due to the dry season that began at the end of last year, including imports through the Cartagena regasification plant, the possibility that the country may lose self-sufficiency in this resource in a shorter timeframe than expected, within a year, according to a recent analysis by the General Comptroller of the Republic, stirred emotions in the sector. (…) Moreover, it made a harsh criticism of the weaknesses in the control that the Ministry of Mines and Energy exercises over entities such as the Mining Energy Planning Unit (Upme) and the National Hydrocarbons Agency (ANH), as information is managed that is not processed in a timely manner and is not shared to achieve a specific objective. (…) Additionally, the criticisms of Upme do not only come from the Comptroller's Office but also from sector agents. For example, Jorge Linero, president of Gas de Canacol Energy, stated that the latest technical supply plan issued by Upme shows technical poverty and contains glaring errors.
Source: El Tiempo
Date: March 11
Headline: Carrasquilla does not yet see the need for fiscal adjustments
In light of expectations regarding government decisions following the drop in oil prices, Minhacienda said that we must wait for the situation to settle. The dollar stopped rising in price yesterday and oil regained some of the ground lost on ‘Black Monday’, but some analysts and former finance ministers point out that «the fall in international crude prices is deafening» and that, consequently, «it requires a rapid and substantial rethinking of our fiscal accounts.» However, Finance Minister Alberto Carrasquilla states that it is premature to make decisions. (…) «Evidently, any dollar below the established prices, both in the Budget and in Ecopetrol's projections (56 dollars), as well as what is implied in the Financial Plan (60 dollars), has effects, but it is necessary to wait a long time because they are annual averages,» he explained.
Source: El Tiempo
Date: March 11
Headline: Reader's forum. Bad times
Mr. Director: This is a difficult time for most of the Colombian people. The people suffer from an unemployment rate of 13.1%. The poor management of relations between Colombia and Venezuela increases smuggling, drug trafficking, dissident groups, and health management risks. More so now, with covid-19. This health problem lowered oil prices, which are the support for the National Development Plan. And this is what economic wizards want to privatize Ecopetrol.
Source: El Tiempo
Date: March 11
Headline: Between the virus and the barrel
Last Monday, the financial world experienced a dramatic day as a result of the deadly combination between the spread of the coronavirus and the recently unleashed oil price war. (…) By the end of the day, the standoff between Russia and the oil-producing countries, led by Saudi Arabia, injected more barrels into a market with already depressed demand, a consequence of the covid-19 epidemic. Shares of oil companies like Ecopetrol saw significant declines, while in Colombia, the dollar marked an increase of more than 200 pesos and reached its historic high of 3,804 pesos. Through the dollar price and the collapse of crude oil prices, Colombia was affected by global turbulence.
Source: La República
Date: March 11
Macroeconomic scenarios showed that 2020 would be a better year for the global economy and, in particular, for the Colombian economy. Due to two external shocks, the first related to the outbreak and spread of the coronavirus (COVID-19) and the second to the “war” of oil prices unleashed over the weekend, those macroeconomic scenarios changed substantially, not only for this year but for the coming years. In this weekly report, we will analyze the possible impacts of these two events on the Colombian economy, particularly the second which may be more severe. (…) In this way, stock markets around the world collapsed, some of them being forced to halt their operations to contain the decline, as was the case with the New York Stock Exchange and the Colombian Stock Exchange. By the end of the day, the S&P-500 contracted -8% (its sharpest drop since the Lehman crisis in 2008) and the Colcap -10.5%, with particular concern over the collapse of -20% in Ecopetrol's stock.
Source: La República
Date: March 11
Headline: The Colcap index of the BVC recovered and rose 1.16%
After registering its largest drop (-10.53%), on Tuesday, the Colcap index of the Colombian Stock Exchange (BVC) showed a recovery of 1.16%. The most traded stock was Ecopetrol, but it showed a negative variation of 1.69% down to $2.330. (…) In light of the drop in oil prices and the negative effect on the national stock market, the president of the BVC, Juan Pablo Córdoba, said that “we cannot continue to depend on oil as a source of external income, the country must make a great effort to diversify.”.
Source: Portafolio
Date: March 11
Headline: Savings and efficiencies sustain Ecopetrol
A petroleum company that learned the lesson well from the previous crisis (2015 – 2016) due to the drop in barrel prices, and that prepared and shielded itself to face new circumstances, like the current one, is Ecopetrol. The blow to the state-owned company was evident: it went from having profits of $13.1 trillion in 2013 to reporting a loss of $3.9 trillion in 2015, with reduced investment and shut-in wells. Thus, for Ecopetrol, the great lesson from that situation five years ago (with a price that reached US$27 per barrel) was to adjust all its lines to cope with the unpredictable dynamics of pricing.
Source: Portafolio
Date: March 11
Headline: The new challenge for Ecopetrol. By: Francisco Miranda Hamburger
The price war currently shaking the global oil market hits very close to the Colombian economy via Ecopetrol, the largest company in the country. The historic collapse of crude prices due to the standoff between Russia and Saudi Arabia constitutes a severe shock to the revenues not only of Ecopetrol but of the entire energy and hydrocarbons sector worldwide. Although on Tuesday crude oil prices recovered by 10 percent, there are no clear prospects for a prompt and definitive solution to the two phenomena currently fueling the crisis: the spread of the coronavirus that depresses demand and the oversupply generated by the Saudis. (…) Ecopetrol faces this new business challenge with resilience proven over this five-year period. Additionally, it has executive leadership, headed by Felipe Bayón, capable and prepared to navigate this complex scenario of uncertainty and volatility.
Source: El Nuevo Siglo
Date: March 11
Headline: Arauca would be gasified in 2 years
The natural gas massification program was the central topic of the meeting with Ecopetrol, Oleoducto Bicentenario, the Ministry of Energy, and the Government of Arauca, in order to advance the agreement to bring gas to the entire department within a term not exceeding two years. Governor José Facundo Castillo emphasized that they are looking for “an operator who can provide the service in the department, and we hope to have the activity schedule for selecting said operator in no less than eight days.” During the working day, a presentation was made on the progress of the agreement signed in October 2013 under the “Plan for Arauca” program to bring gas to the entire eastern region of Colombia.
Source: El Meridiano de Córdoba
Date: March 11
Headline: Ecopetrol can withstand volatile prices
Finance Minister Alberto Carrasquilla, Minister of Mines and Energy María Fernanda Suárez, and Ecopetrol President Felipe Bayón met yesterday to analyze the economic, financial, and energy scenarios in light of the international situation of oil prices. Ecopetrol has a solid operational and financial situation to face the current volatility in international crude pricing, affirmed the Ministries of Finance and Mines in a joint statement. «Ecopetrol is a resilient company and better prepared than in previous circumstances to face the current international scenario, after having carried out a transformation and efficiency program that has allowed it to achieve savings of over $13 trillion in five years,» the statement notes.
Topics
Source: La República
Date: March 11
Headline: Towards productivity. By: Abelardo de la Espriella
The spokespersons of alarmism, those who resist seeing the positive aspects of the state of our economy, refuse to acknowledge its good results, despite the difficulties that Iván Duque inherited from the previous government. (…) Colombians are facing the imminent and necessary implementation of new technologies that responsibly accelerate oil production. I refer to hydraulic stimulation, popularly known as fracking. I fully support the incorporation of this technique into this sector, which - as is natural - must be carried out rigorously and respecting protocols that avoid environmental risks. With an increase in oil and gas production, Colombia will have sufficient resources to finance large infrastructure projects, which, in turn, will catalyze the productive expansion of our country.
Source: La Libertad
Date: March 11
Headline: What sovereignty? By: Orlando Andrad
The national government demanded that the United Nations Organization, specifically the Secretariat responsible for Human Rights, chaired by former Chilean president Michelle Bachelet, respect Colombian sovereignty. (…) Fracking is another topic of discussion that has no end; despite studies showing environmental damage, gas and oil extraction through this method still persists. The curious thing about the issue is that the Comptroller General of the Nation stated that gas was running out and would last until the year 21, and the government authorized operations the following week. In the United States, fracking has not affected the environment since its practice is carried out in deserts, while in Colombia it is intended to exploit in the Magdalena Medio, the best lands in the country, where all the tributaries of the Magdalena River converge.
Source: Diario del Huila
Date: March 10
Headline: Clarity on fracking is urgent
As of today, Colombia has 9.8 years of gas reserves and 6.2 years of oil. While it is true that there is an ambitious policy to increase hydrocarbon exploration and exploitation in the short and medium term, and given the potential of our country, there is much confidence that these efforts will yield positive results and expand the horizon of self-sufficiency in this matter, this is a productive sector where nothing can be taken for granted. (…) The process could well take more than one or two years to begin operations on the ground. If it is added that the investment is in the millions, it would be most appropriate for the Council of State to pronounce, once and for all, on whether fracking is viable or not in Colombia.
Source: Extra Bogotá
Date: March 10
Headline: Congress members demanded the ‘Fracking’
Parliamentarians KATHERINE MIRANDA and César Ortiz Zorro, from the Green Alliance, and César Pachón, from Mais, filed a resource in the Council of State to annul decree 328, which authorizes exploration for research purposes, not commercial, of this technique that consists of hydraulic fracturing as a method to enable or increase the extraction of gas and oil from the subsoil.
Source: La W Radio
Date: March 10
Source: RCN Radio.
Date: March 10
Source: La FM Radio
Date: March 10
Institutions
Source: La República
Date: March 11
Headline: The average price of a gallon of gasoline will be $9.159.
The Ministry of Mines and Energy announced yesterday that starting today, fuel prices will decrease in the 13 main cities. According to the ministry, this drop is the most significant recorded in both fuels since January 2017, when the average for the 13 main cities in the country began to be calculated. (…) The price reduction occurs amid the international oil crisis. However, the Ministry confirmed that this situation did not drive the reduction, as there are more factors considered in calculating the variable. In fact, there are about 16 components taken into account, such as the TRM price, oil, and biofuels, among others.
Source: Portafolio
Date: March 11
Headline: Fuel prices decrease.
The Ministry of Mines and Energy (MME) reported that starting today, gasoline and diesel prices will decrease by $107 and $104 on average, respectively, in the 13 main cities of the country. Thus, the base reference rate is set at $9.576 per gallon for gasoline and at $9.333 per gallon for diesel. (…) For the MME, the decrease in fuel prices is mainly due to the behavior of the barrel price during February, the refined products, as well as the decrease in biodiesel, considering in parallel the rise in ethanol prices due to sugar quotations and the devaluation of the TRM.
Source: El Nuevo Siglo
Date: March 11
Headline: Gasoline prices drop $107 and ACPM $104 due to falling crude oil prices.
Gasoline prices dropped today by $107 and ACPM by $104, according to the determination of the Ministry of Mines and Energy. “In accordance with the provisions of Article 1 of Resolution 4 0090 of 2020, the producer income anticipated in the price structure of regular motor gasoline will be $5.358,99 per gallon,” wrote the Ministry of Mines. Similarly, the official text clarified that the cost in the ACPM rate will remain at $5.736,10. Thus, fuel prices decrease in the main cities of the country compared to the prices set for February of this year. (…) Meanwhile, yesterday the Minister of Finance and Public Credit, Alberto Carrasquilla; the Minister of Mines and Energy, María Fernanda Suárez; and the President of Ecopetrol, Felipe Bayón, met to analyze the economic, financial, and energy scenarios in light of the international oil price situation.
Source: Vanguardia Liberal
Date: March 11
Headline: Who wins and loses?
The Ministry of Mines reported that starting tomorrow, the price of gasoline in Santander will drop $126 to $9.369, and the price of ACPM will decrease $123 to $8.952. This measure is believed to have resulted from the fall in Brent prices at the international level. (…) The fear of the economic impact of the coronavirus continues to linger, and the prices of the dollar and oil maintain their volatility in the market, despite starting to return to calm yesterday. In the case of the North American currency, it reached an average price of $3.780,30 yesterday, which represented a drop of $23.3 against the Representative Market Rate, TRM. However, it maintains its high quotation. On the other hand, oil prices rose sharply. Brent increased by 8% and was quoted at US$37,10, while WTI rose 10,38% reaching up to US$34,36.
Source: El Pilón
Date: March 11
Headline: «The gasoline quota in Valledupar needs to be expanded»: Fendipetróleo
Frequently, the department of Cesar is severely affected by the fuel shortage, mainly in the north of Cesar, according to the National Federation of Fuel and Energetic Distributors, Fendipetróleo Cesar, the quota and demand that the department and mainly Valledupar, as the capital, must be in line with the needs of the different municipalities to ensure the obligations required by the final consumer. (…) “Due to the abrupt economic effect that the world has experienced, the rapid drop in oil prices in recent days, and the modifications resulting from the coronavirus epidemic that significantly influences the economic impact, it may affect the price of gasoline, but so far our matrix and price structure sent by the Ministry of Mines has not been modified, and as everything progresses, those modifications will be announced,” concluded Mendoza.
Colombian Association of Oil and Gas