The discussion about unconventional deposits (YNC) and the fracking technique heats up cyclically.
[prefix_blockquote]The question is whether in a country like ours, with so many needs, can we afford to close the door to this opportunity?[/prefix_blockquote]Addressing the concerns of different sectors, President Duque's government, among its first actions, convened a multidisciplinary Expert Commission to comprehensively analyze the state of YNC in Colombia and, in particular, whether the country has the appropriate regulation, whether the risks are identifiable and preventable, whether the companies that have planned to develop them have experience and are serious; whether the country is prepared to begin the exploratory phase. And it was born with the intention of generating consensus around the issue, therein lies its greatest value.
It has not been easy. There are those who persist in placing fracking – a technique increasingly used worldwide to extract oil and gas – in the political, media, and social media realm, the sensational headlines, and the superficial analysis seeking to confront all actors. We forget the common interests, that we are all users and beneficiaries of hydrocarbons, and the main objective we share as Colombians: the development of the country and its non-renewable natural resources in an environmentally and socially sustainable manner.
And we are not talking about different things. The Government, the General Comptroller of the Republic, the Congress of the Republic, the high courts, and now the Expert Commission, all agree on this purpose. All, including the industry, are aware that there are risks – as in all human activity – and we all agree that it is necessary to do it well, with the best practices, with the oversight of institutions, and the monitoring of communities and stakeholders.
That is why we must agree on the fundamentals: take the first step, open the door to scientific research, through the pilot research projects (PPI) recommended by the Expert Commission, through concrete operations in the field, under the existing regulation and the ongoing environmental licenses. The four industry pilots, which would be developed in the Middle Magdalena Valley and the Cesar Ranchería Basin, will provide us with complete and transparent information regarding the use and quality of groundwater and surface water, return flow, seismicity, use and management of chemicals, air quality and noise, among other aspects.
The results of the first exploratory wells will serve to build an environmental baseline, will be used to evaluate the effectiveness of the current regulation in Colombia, and will provide the technical and environmental elements necessary to determine any future regulatory adjustments, if necessary. Hence the importance of moving forward swiftly.
This does not take into account that the energy self-sufficiency of the country is at stake, that is, that we produce the resources we consume – for example, natural gas, essential for energy generation – otherwise we will be forced to import gas and crude oil from countries that do use fracking and also receive its benefits. We already experienced the history of importation in the 1970s, with high costs for households, industry, and the country. We cannot repeat it.
The four mentioned pilots, once they move to the development phase, would produce an additional 450,000 barrels per day and self-sufficiency in gas for 25 years. In addition to investments of 5 billion dollars a year and revenues for the State of 36 billion dollars, they would generate thousands of direct and indirect jobs in the operating regions. In addition to boosting productive linkages and regional economic growth.
So, the question is whether in a country like ours, with so many needs and growing social demands, can we afford to close the door on this opportunity?
The invitation is to work together to advance in the exploratory phase and the development of unconventional deposits, just as other countries have done, including Argentina, which went through this same discussion a decade ago, and today already sees the fruits of the development of its UCD. For this, and in light of the recommendations and questions that arise from the final report of the Commission of Experts and the one conducted last year by the Comptroller's Office, we have no doubt that the solution is the prompt implementation of industry pilots.
Only the pilots will allow us to set aside discussions that have us stalled and finally move forward as a country in building consensus based on evidence and real facts, in which sustainable development and the well-being of Colombians prevail.
Francisco José Lloreda Mera
President of the ACP
Colombian Association of Oil and Gas