ACP as a source of information
Source: El Colombiano – Regional
Date: April 26
Headline: How is the global race to find an effective treatment going?
How much oil and gas is needed in a world in lockdown? How much fuel will countries that reactivate their economies but with restrictions of up to 35% in public transport capacity demand? It seems not much. (…) Last Wednesday, Felipe Bayón, president of Ecopetrol, told the Fifth Commission of the House of Representatives that the uncertainty for the sector is tremendously large and the fact that there is a considerable drop in demand for both gas and oil is concerning, which paints a different market for Ecopetrol and for companies in the segment. (…) Still, fracking remains a priority for the government of Iván Duque. The Ministry of Mines and Energy told EL COLOMBIANO that the pilot plans would not be affected by the situation. (…) This is echoed by Francisco Lloreda, president of the Colombian Petroleum Association (ACP), who recalled that the material will return to high prices and demand levels when the economy consolidates. This, added to the fact that the pilots, which already have the approval of the Council of State, are intended for an exploratory phase.
Source: El País – Regional
Author: Francisco José Lloreda Mera
Date: April 26
Headline: 70 years
I woke up early, still in the dark. I would descend barefoot and on tiptoe to avoid making noise, down the stairs that connect to the kitchen, to the front door. There I would stay still, in silence, waiting. Suddenly, it would rush in quickly under the door, I would pick it up from the floor and run to my room, with my heart racing, to read it. The joy lasted little: my father started getting up even earlier to pick up the newspaper first. I grew up in El País. My childhood, with few exceptions, is associated with memories at the San Nicolás neighborhood headquarters. There was no better plan upon returning from school than to go there, with any excuse, and during vacations my greatest wish was to work there. It was replicated in: elpais.com.co (April 26).
Source: La Opinión – Regional
Date: April 26
Headline: How did the drop in oil prices impact the pockets of Colombians?
The storm unleashed by the drop in international oil prices, due to oversupply, forced the government to do the math for the lower revenues that will be reflected in royalties and in the profits of Ecopetrol, in which it is a shareholder. In the first case, revenues from the exploitation of non-renewable natural resources by the private company will flow in lesser amounts and will affect the investment allocation that the nation distributes through the General System of Royalties (SGR). It is estimated that the country's and regions' fiscal revenues could fall by more than 75 percent if the price of the barrel remains below 25 dollars for the Brent reference, according to calculations by the Colombian Petroleum Association (ACP). (…) La Opinión consulted Ecopetrol to understand the impact of oil prices on its operation and the expectations it has in the current context, due to the oversupply and low demand generated by the spread of the coronavirus. It was replicated in:laopinion.com.co (April 26).
Source: Semana – National
Date: April 25
Headline: Raw Outlook
In light of the oil crisis, companies in the sector announced a sharp decline in their exploration and production budgets for this year, of 60 and 55 percent. Also, a cut in production of 35,000 barrels per day and the likely decrease in revenues from royalties, taxes, and rights, which would drop from 16.1 trillion pesos in 2019 to 4 trillion in 2020. But if the price of Brent remains below 25 dollars a barrel for the rest of the year, production could fall by 100,000 barrels a day and investment would face additional cuts of between 10 and 15 points. In light of the dramatic outlook, Francisco José Lloreda, president of the Colombian Petroleum Association, asked the Government to reduce crude oil transportation rates by pipeline. It was reported in: semana.com (April 25).
Source: Semana – National
Author: Alfonso Cuellar
Date: April 25
Headline: The «new normal» of oil
One of the most enjoyable activities was predicting the price of oil. The funny thing is that it was almost never accurate. The price did not depend on the laws of supply and demand. The X factor is geopolitical, which influences the rise and fall of prices. Traders played with that uncertainty; a Russian roulette of possibilities. (…) Before the pandemic, it was impossible to imagine a world without oil. Not anymore. The coronavirus accelerated the conditions. The COVID-19 crisis will affect the long-term demand for crude. (…) The oil sector faces an immense challenge for new investments in exploration projects. The famous fracking is entering intensive care. (…) In this environment, Colombia and its oil sector, which was flourishing, were left at the mercy of global market uncertainty. The ACP told John Jairo Ocampo, former press chief of Juan Manuel Santos, that the cut in oil production would be in the Eastern Plains, followed by the Middle Magdalena Valley and Putumayo. Between 25 and 30 fields together could stop producing 100,000 barrels a day if the price of Brent remains below 25 dollars. It was reported in: semana.com (April 25).
Source: mase.lmneuquen.com – National
Date: April 25
Headline: Barrel in red: the historic fall of U.S. oil.
What are the effects of the extraordinary contraction of demand? Vaca Muerta also has problems placing its crude. The price of a barrel of oil is at its most complicated moment. To the price war that pushed the average value down, taking it from 60 to 30 dollars per unit, is now added the demand crisis. (…) In addition, other companies like Shell, ExxonMobil, and Vista Oil & Gas implemented various cuts in their unconventional areas due to the lack of markets in the country to inject that production. (…) After the shock of WTI trading in negative, the hydrocarbon sector had to activate alerts. Countries in the region are suffering from the drop in demand and the decline in barrel prices, forcing many governments to abruptly change plans. In Colombia, private companies will reduce their investments by U$S 1000 million. “This is the greatest crisis in the history of the oil industry worldwide, which puts the oil industry in Colombia at risk,” said the president of the Colombian Petroleum Association, Francisco Lloreda, in a virtual press conference.
GREMIO
Source: Portafolio
Date: April 27
Headline: Backup and continuity in the supply of Biodiesel to the country
During the mandatory quarantine, which has just been extended until May 11, there are sectors that cannot stop, as their operation is recognized as essential for the country. (…) It is worth noting that the company supplies the two main refineries in the country: Ecopetrol, in Barrancabermeja, and Reficar, in Cartagena. Likewise, through tank trucks, Ecodiesel distributes its product to the main wholesalers in the country, among which Primax, Biomax, Zeuss Petroleum, Petromil, Petrobras, among others, stand out.
Source: La Guajira
Date: April 27
Headline: SENA and the private sector join forces to protect health personnel in La Guajira
A group of SENA instructors, with the support of Clínica Cedes and the Ecopetrol-Chevron association, built a disinfection booth and other biosecurity elements to protect and prevent the COVID-19 contagion of health personnel. With the aim of contributing to preventing the spread of Covid-19 in La Guajira and in response to the private sector's call to implement solutions that allow for the protection of medical and support personnel from possible infections, a group of SENA instructors and apprentices designed and created a disinfection booth, overalls, masks, and are preparing for the 3D printing of face shields. (…) For his part, Víctor Ramírez, manager of the Chevron – Ecopetrol base in La Guajira, stated that with this project “we want to help the community have a lower probability of contagion; we will continue to support all ideas that are part of the solution.”.
Source: Forbes.co
Date: April 27
Headline: Ecopetrol obtained US$2.000 million in foreign issuance
The oil company's bonds were oversubscribed more than two times. The state-owned oil company Ecopetrol reported to the Financial Superintendency the results of its foreign bond issuance, which allowed it to generate revenues of 2.000 million dollars. According to the company, more than 250 investors from Europe, Asia, and Latin America participated in the auction, with an offer that reached 5.000 million dollars. (…) In addition, Ecopetrol explained that the new debt “seeks to anticipate potential cash needs associated with a deterioration in market conditions, providing flexibility in the development of the business strategy.”.
Source: prensalibrecasanare.com
Date: April 27
The “Great Donatón Casanare Solidario” collected, according to the Governor's Office, 3.638.721.000 million pesos, contributed through electronic transfers, and 176.760 kilos, represented in 13.000 units of non-perishable food and protective items collected. The activity led by social manager Cielo Barrera exceeded the expected goals thanks to the generosity of the community, entrepreneurs, public officials, managers of decentralized entities, media, social and political leaders, the Rotary Club of Yopal, the Colombian Civil Defense, Red Cross Sectional Casanare, National Police and Army, national and local artists, comedians, religious congregations, Ecopetrol, bank branches, among other entities, personalities, and institutions.
Source: casanarenoticias.com
Date: April 27
Headline: Ecopetrol Group contributed 1.9 billion pesos to Donatón Casanare Solidario
The Ecopetrol Group joined the “Donatón, ¡Casanare Solidario!” with the formalization of an additional contribution of $1.900 million that adds to the initial $1.566 million for a total of $3.466 million that will be delivered to serve the community in coordination with the Governor's Office, the mayors, the Army, and the National Police. (…) These deliveries are in addition to the aid provided directly by Ecopetrol employees and contractors and its transportation subsidiary, Cenit, through the Ecopetrol People Foundation, which to date has benefited more than 350 families in the department. Ecopetrol invites the people of Casanare to promote self-care, comply with preventive measures to contain the spread of Covid-19, and join efforts to protect the health and lives of all Colombians.
Source: El Tiempo
Date: April 26
Headline: In secret. Oil measures
In the Rubiales oil field, the largest in the country, measures were taken to prevent the coronavirus. For someone to enter, they must carry a certificate showing that they do not have the virus, and the shifts for workers have been extended to 21 days. Meanwhile, the Ecopetrol group confirmed that 13,000 of its workers are teleworking and only about 2,300 are attending key work positions, such as oil fields, refineries, and pumping stations.
Source: El Tiempo
Date: April 26
Headline: This is the map by regions of the coronavirus
The coronavirus, which has left 233 victims in the country, has hit the regions differently. The central and western areas are the most affected, where Bogotá and Valle lead the lists of positive cases and deaths. After the capital of the country, Valle, which has 816 cases and 49 deaths, is the region that worries authorities the most. There, cases are concentrated in the center of the department, that is, Cali and its neighboring municipalities, but there are already 22 cases and one death in the port of Buenaventura, its main and populous city on the Pacific coast. (…) There, cases are concentrated in the metropolitan area of Bucaramanga, and there is a small percentage in Barrancabermeja, where an Ecopetrol worker died at the beginning of the month.
Source: El Tiempo
Date: April 26
Headline: Investing at this time is not a bad idea, analysts say
‘No evil lasts 100 years nor can any body endure it.’ This phrase, often repeated by grandparents, is relevant today amid the Covid-19 pandemic that has severely impacted the economy and markets worldwide. For analysts, this is precisely one of the factors that play in favor of investors in a situation like the current one, where the prices of certain assets are below their potential value, which may not be for long. (…) The timing of investment is very important; although stocks cannot guarantee an expected return in the long term, their behavior reflects the behavior of the economy, which will overcome the negative effects brought by the expansion of the coronavirus and low oil prices. (…) Graph: This is how companies and their shareholders fared in 2019. Companies that increased their dividend: (…) Canacol 100%.
Source: El Espectador
Date: April 26
Headline: Actions to combat the coronavirus
These days, when everyone is in emergency due to the coronavirus pandemic, people have come together to contribute and help improve the lives of those around them. Empathy and solidarity are the protagonists. Everyone focused on the same cause: taking care of each other to move forward. (…) The private sector has been one of those that has made significant contributions to mitigate the emergency, to mention a few: Ecopetrol, Grupo Bolívar, Fundación Éxito, Grupo Diana, ISA, Bavaria, Bancolombia, FMSD Valorem, Nutresa S.A, Grupo Argos, Advent International, and Enel-Codensa. Here we show you other initiatives of how the private sector shows solidarity in times of COVID-19.
Source: Vanguardia Liberal
Date: April 26
Headline: Profits fall
Ecopetrol announced that the crisis of international crude oil prices and the advance of COVID-19 will negatively affect the company's operational and financial results in the first quarter of the year. Its consolidated net earnings could fall between 52% and 65%. In turn, the consolidated gross profit and its operating income will be lower in the range of 32% – 36% and 43% – 47%.
Source: Vanguardia Liberal
Date: April 26
Headline: They are working on the design of a reactivation plan
Ecopetrol and the District continue to move forward with the reactivation plan for Barrancabermeja, which, according to reports in recent hours, is receiving final touches to be presented to the public. It has been learned that it will be a staggered start, which seeks at all costs to preserve the health of the port residents in the face of the coronavirus pandemic, which has already claimed a fatal victim in the city, precisely a worker from the oil industry, and maintains 5 more active cases. (…) “As part of the joint work we have been carrying out with the District of Barrancabermeja, we had a very important meeting, in which Mayor Alfonso Eljach and part of his government team participated, as well as the management team of Ecopetrol. The objective of this meeting was to establish how we can continue working through a process that allows us to reactivate activities in a staggered manner. The conclusions are very important, and we are going to develop a very coordinated plan that gives a lot of confidence to the community, prioritizing life and the revitalization of the local economy,” said Julia Celina Ángulo, Head of Environment at Ecopetrol.
Source: El Frente
Date: April 26
Headline: Increase personnel in UIS laboratory to avoid backlog
Starting this Saturday, April 24, the Health Secretariat of Santander will have a team of medical personnel working on weekends to support the processing of tests in the UIS laboratory. (…) “We have received a little over 740 samples and have about 161 pending. We are analyzing 82 tests daily. That is the idea. Not to let the tests accumulate due to lack of personnel and to keep the laboratory functioning seven days a week,” added the secretary. Currently, the department is analyzing COVID-19 tests in two laboratories certified by the National Institute of Health, which are UIS and Higuera Escalante. The Health Secretariat has already conducted validation visits and transfer of the laboratories that want to be enabled, which are ICA, the University of Santander, and the Ecopetrol laboratory.
Source: elheraldo.co
Date: April 26
Headline: Ecopetrol donates biosecurity equipment to the District of Riohacha
Mayor José Ramiro Bermúdez received the contribution and distributed it to different institutions that provide health services and care for COVID-19 patients. Personal protective equipment, biosecurity suits, surgical gowns, masks, disposable gloves, shoes, antibacterial gel, and other useful items for medical teams were donated by Ecopetrol to the District of Riohacha. The objective is to contribute to the contingency plan that District Mayor José Ramiro Bermúdez has underway, in order to reduce the risk of contagion and spread of COVID-19, especially among health workers. “For us as a company, it is very important to contribute to the emergency response, for the benefit of the inhabitants of the municipality of Riohacha and the department,” stated Patricia Vivas Avendaño, Regional Head of Caribbean Environment at Ecopetrol, through a statement.
Source: bluradio.com
Date: April 26
Headline: Coronavirus in Santander: The third death from coronavirus confirmed
The governor of Santander, Mauricio Aguilar, confirmed the third death from coronavirus in the department. It is a 65-year-old man who had been in delicate health for 25 days in an intensive care unit. This case adds to that of a 49-year-old man, an Ecopetrol worker, who died in a healthcare center in Bucaramanga; and another 60-year-old man, who died in a park in Bucaramanga without knowing he had the disease.
Source: caracol.com.co
Date: April 26
Headline: There are already 26 people recovered from Coronavirus in Santander.
In the last hours, a new case was reported to the list of infected in the region, which amounts to 38 confirmed cases of COVID-19, this person is 45 years old and is in Floridablanca stable and isolated. However, the positive thing is that, to date, there are already 26 people cured of the pandemic, that is, more than half of the infected recorded by the National Institute of Health do not have the virus in their body. (…) To date, three people in Santander have died from COVID-19, one in Barrancabermeja, an Ecopetrol employee, another who died in a park in Bucaramanga, and a 45-year-old man from Floridablanca.
Source: valoraanalitik.com
Date: April 26
Headline: Ecopetrol placed US$2.000 million in external bonds.
Ecopetrol placed US$2.000 million in external public debt bonds in the international market. The offer for the bonds was launched last Friday, April 24. According to the LatinFinance portal, the yield for the 10-year bonds was 7 % with a coupon of 6.875 %. The issuance was carried out with the aim of strengthening the company's liquidity position amid the low oil price situation.
Source: eldiariodelllano.com
Date: April 26
Headline: Ecopetrol announced more support to address the emergency due to Covid-19 in Casanare.
The Ecopetrol Group joined the “Donatón, ¡Casanare Solidario!” with the formalization of an additional contribution of $1.900 million that adds to the initial $1.566 million for a total of $3.466 million that will be delivered to the service of the community in coordination with the Governor's Office, the mayors, the Army, and the National Police. (…) These personal protective and cleaning items will be delivered to hospitals and/or health centers in Yopal, Aguazul, Tauramena, Monterrey, and Hato Corozal, as well as to the Army and Police in charge of security in the department. (…) These deliveries add to the aid provided directly by Ecopetrol employees and contractors and its transportation subsidiary, Cenit, through the Gente Ecopetrol Foundation, which to date have benefited more than 350 families in the department.
Source: El Tiempo
Date: April 25
Headline: Harsh calculation of Ecopetrol on profit.
Due to the drop in oil prices, which began in February and intensified in March, Ecopetrol anticipated that its net profit would decrease between 52 percent and 65 percent in the first quarter. This would lead to the oil company's profit being between 960,000 million pesos and 1.31 trillion pesos, compared to a profit of 2.74 trillion achieved in the same period of 2019, which at the time increased by 5 percent annually compared to 2018.
Source: La República
Date: April 25
Headline: Ecopetrol's profit could drop by up to 65% in the first quarter.
The crisis of international oil prices and covid-19 will initially impact Ecopetrol's financial results in the first quarter of the year. The company announced this through a statement informing that its profits could decrease between 52% and 65% by March due to the situation. The oil company also revealed that gross profit and consolidated operating income will be lower in the range of between 32% -36% and 43% -47%, respectively. In fact, they confirmed that it is currently estimated that the results of the first quarter «will reflect an increase in the impairment of non-current assets in the range of $1.1 billion and $ 1.2 billion.» This will be driven by the expected short-term decrease in cash flow from such non-current assets given the oil price environment.
Source: El Nuevo Siglo
Date: April 25
Headline: Fitch endorses Ecopetrol's bond issuance
A long-term BBB rating was given by the rating agency to the bond issuance made yesterday by Ecopetrol for US$2.000 million. This same rating is held by the country but with a negative outlook. The company expects to use the proceeds to increase its liquidity position amid the economic impact of the coronavirus, as well as to pay upcoming maturities and for general corporate purposes. Currently, Fitch assigns long-term issuer default ratings (IDR) in local and foreign currency to Ecopetrol at BBB- with a negative rating outlook. The ratings of Ecopetrol reflect the close link with the Republic of Colombia (IDR in foreign and local currency of BBB- / Negative), which currently owns 88.5% of the company. Fitch points out that “Ecocpetrol's ratings also reflect the strategic importance of the company to the country, as well as its ability to maintain a solid financial profile despite the decline in hydrocarbon prices.”.
Source: La Opinión
Date: April 25
Headline: The day after. The evident. By: Manuel Guillermo Camargo Vega
In the northern hemisphere, one of the strongest summers will be experienced amid a pandemic. It has become evident that for weeks Congress did not work and no one missed it. This raises the question of whether we need such a gigantic collegiate body, mostly made up of electoral businessmen with their own interests, when not wrapped in an anti-democratic ideologization, and whether it would be good to reform it radically. Why continue with something so large that is useless and costly? (…) And if in November 2020 the Democrats return to the White House, that country will join the global trend, except for China, which will continue to talk about sustainability while massively consuming hydrocarbons; but that country still has to emerge from the most severe economic downturn since it implemented a market economy. Covid19 mortally wounded the oil industry, and that will affect us in the country, which still relies on crude oil without being a major producer. Ecopetrol will begin to lose market value and will slowly but surely take the path of Telecom.
Source: El Nuevo Día
Date: April 25
Headline: Impacts
Ecopetrol announced that the crisis of international crude oil prices and the advance of Covid-19 will negatively affect the company's operational and financial results. The company revealed that its consolidated net profits could fall between 52% and 65%.
Source: elcolombiano.com
Date: April 25
Headline: Ecopetrol donates $3.400 million for coronavirus care in Casanare
As part of the Donatón ¡Casanare Solidario!, the Ecopetrol Group contributed $3.400 million in humanitarian aid, including food supplies for vulnerable populations and equipment for health professionals, which will be delivered in coordination with the Governor's Office, municipal administrations of the department, and the Public Force. (…) Finally, the company will provide medical equipment to increase the capacity to care for high and medium complexity patients in hospitals and health centers in Yopal, Aguazul, Tauramena, Monterrey, and Hato Corozal. “It is the time to join efforts and work as a team to strengthen the health system, the prevention and containment of the virus, and to meet the needs of the communities. These are difficult times that call us to be supportive and to comply with self-care and isolation guidelines,” said Ecopetrol's president, Felipe Bayón.
Topics
Source: El Tiempo
Date: April 27
Headline: Time to turn on the little machine of the Bank of the Republic and make it produce bills?
Luis Alberto Rodríguez is the director of National Planning. He is a prominent young economist who now has the responsibility of planning public and economic policies for Colombia. He explains his failures and challenges. (…) Colombia has less maneuvering room with funds than other countries in the region, which have saved more in the past. For example, Chile and Peru are now spending several points of GDP. Does that put us at a disadvantage? In 2018, Peru had a debt close to 20% of GDP, while ours was above 45%. Colombia could have made greater efforts when oil prices were higher last decade.
Source: La República
Date: April 27
Headline:This is how the local economy fared in the last crises.
The shock of oil prices and the advance of covid-19 could have a lesser effect than the financial crisis of 1999 and the bursting of the housing bubble in 2008. The last time Colombia recorded its worst economic crisis was in 1999. The Gross Domestic Product fell by 4.21%, in a year when the financial system not only had to endure the bankruptcy of several institutions but also reinforce its policy for housing loans. In the push to reduce that strong contraction, and after launching the lifeline of 2×1,000 (now 4×1,000), nine years later the housing bubble burst in the United States. The external shock was felt in the western hemisphere, at a pace almost similar to what the country is facing today, which has seen how covid-19 jeopardizes external demand and the main economic sectors.
Source: La República
Date: April 27
Headline: Monetary policy and banking fragility. By: Sergio Clavijo
Without knowing (at that moment) the inflation data for March, the Bank of the Republic (BR) took the gamble of lowering its repo rate from 4.25% to 3.75% (-50 bps) at the end of March. It surely expected that the drastic reduction in oil prices (-40% in the first quarter) and its transmission to local fuel prices would soon allow it to see inflation closer to 3% annually. (…) We will likely see inflation in Colombia converging towards 3% in the coming months, given the collapse of aggregate demand. If so, the BR could soon resume its counter-cyclical path and cut another 75 bps from its repo rate, bringing it down to 3% and keeping the real repo at zero.
Source: Portafolio
Date: April 27
Headline: These are exceptional circumstances. By: Ricardo Villaveces Pardo
After several weeks of quarantine, receiving tons of information about what is happening in the world and what is happening in Colombia, from forums and debates about the characteristics of the problem and its possible consequences, it is clear that there are still many questions and much information needed to have a thorough understanding of the health crisis. Also, there are many other fronts where the conclusions are already compelling and warrant urgent decisions. (…) The immense aid that may be required for this concept, combined with the current needs of the country, would already be an immense challenge. If we add to that the impact of the collapse of oil prices, the situation of Colombian public finances worsens substantially.
Source: El Tiempo
Date: April 26
Headline: The hidden story of Schifano, the money launderer of ‘Santrich’ and ‘Márquez’.’
Vincent Schifano is a New Yorker of Italian descent who spent a long time in Russia, was at least 4 months in Colombia exploring oil projects, and is now serving a 9-year prison sentence in a medium-security cell in South Carolina for laundering drug trafficking money. The 64-year-old man was sentenced last March for laundering part of the money with which, according to the DEA, ‘Jesús Santrich’ negotiated 10,000 kilos of cocaine with Mexican cartels, after the signing of the peace agreement between the FARC and the Santos government.
Source: El Espectador
Date: April 26
Headline: The unanimous discomfort. By: William Ospina
The big difference between the pandemic we are currently experiencing and all the great pandemics in history is that when all the previous ones occurred, the Justinian plague, the bubonic plague or the Black Death, smallpox, cholera, the Spanish flu, we had not dramatically altered the natural balance, we were not experiencing such accelerated climate change, a growing extinction of species, such gigantic destruction of the biosphere, such reckless and unhealthy dietary changes, an incorporation into the world of genetic alterations wrought by science and industry so full of unpredictable consequences (…) It is showing us, for better or for worse, that everything can change overnight. States and companies that never found a way to pay people well for working suddenly have to pay them to stay home. Airlines around the world suddenly find themselves expelled from the sky. The oil whose price tyrannized us and whose combustion both moved and paralyzed us is sinking into the inexplicable.
Source: El Espectador
Date: April 26
Headline: What the low tide has let us know… By: Mauricio Botero Caicedo
Investor Warren Buffett said that when the tide goes out, we find out who is wearing a swimsuit and who isn’t. The painful experience of COVID-19 has made Colombians aware that in many aspects we appeared to be wearing swimsuits when in reality we were swimming in the nude. (…) And while it is likely that oil prices will recover somewhat in the third quarter, it is very probable that the global supply of crude oil will continue to exceed demand, which will keep prices under strong downward pressure. To this gloomy Colombian macroeconomic outlook, we must add that two of the main sources of foreign currency that the Government relied on, tourism and remittances, will take several years to normalize. If we want to ensure that a future crisis does not catch us in the nude, let’s start building a new productive model —economically and fiscally sustainable— based not on the exploitation and rents of fossil fuels, but on our enormous capacity to produce food efficiently and profitably.
Source: El Espectador
Date: April 26
Headline: Projections and reality of Covid-19. By: Eduardo Sarmiento
COVID-19 gave rise to apocalyptic projections. In a publication from March 14, the epidemiology faculty of Imperial College, England, revealed a research study predicting that a person infected with the virus could contaminate three others. (…) In this context, it is most likely that the contamination rate will continue to decline slowly and stabilize at a number of infected below twelve thousand. Thus, the country will be able to recover its normal activities with precautions and will have to coexist with a virus that has already surpassed the most critical state and tends to decrease progressively. The drama will be to reactivate an economy burdened by falling oil prices, reduced investment and employment, and the widening of inequalities.
Source: El Nuevo Siglo
Date: April 26
Headline: The pulse of the economy
Oil. The turbulence that has hit oil this week will be hard to forget. On Monday, the price of the May delivery barrel of West Texas Intermediate closed at US$-37.63 per unit, going negative for the first time in history. The high supply and the collapse in demand due to the Covid-19 crisis caused oil to mark its lowest price in 150 years. To get an idea of the magnitude of the event, experts from Deutsche Bank argue that, in practice, this Monday the barrel of oil was cheaper than in 1870. Nevertheless, by Friday calm had returned to oil. The West Texas Intermediate for June delivery closed at US$16.
Source: El Colombiano
Date: April 26
Headline: Health or economy? By: Federico Gutiérrez Zuluaga
Denying that there is a dilemma today between whether it is necessary to prioritize health or the economy is, at the very least, naive. In various conferences and virtual forums I have attended during the lockdown, I have noticed something that several experts have said: health is life, but the economy is the means of livelihood. If we do not manage to understand that both are important and that both depend on lives, eventually the predominant cause of deaths in the context of this crisis will cease to be the virus and will become hunger and very likely violence. (…) We have a dollar above $4,000, the price of the barrel of oil at historically low levels (with the aggravating factor that the national general budget contemplated its price at USD 67 per barrel), projections (according to Anif) about employment and household income with losses of $5.8 trillion (0.5 % of GDP), an unemployment rate that will rise from the current 12.2 % to an estimated over 20 %.
Source: RCN Radio.
Date: April 26
Source: El Tiempo
Date: April 25
Headline: In the face of the covid-19 crisis, look to the countryside first.
It is an evident reality that we are facing the greatest challenge for the human species, which abruptly alters the health systems of the planet, affects millions of infected individuals, and results in thousands of deaths. We are at the beginning of a recession and an increase in poverty with higher unemployment, according to experts and international organizations. (…) Given the terrifying outlook that the World Food Program (WFP) of the UN warns of, of millions who could die of hunger in poor countries, with low or middle incomes “whose economy depends on oil exports, the sale of raw materials, or tourism,” and with millions who can only eat if they work, the impact would be dramatic if we do not change the model. (‘Global Report on Food Crises’, 21-04-20).
Source: La República
Date: April 25
Headline: Almost 200,000 companies will reactivate starting next Monday.
The decree issued by the government to extend the national preventive quarantine also included a section that regulates the reactivation of two important sectors of the economy, construction and manufacturing, which according to Dane's calculations contribute around 6.51% and 10.1%, respectively, to the economy. Under this new scenario, the companies that will be able to start operating from next Monday are around 200,000, according to data from the guild that groups the chambers of commerce, Confecámaras. For the construction sector, the number of companies that could start operating exceeds 105,700, with a higher percentage in companies dedicated to specialized activities for building construction and civil engineering works. (…) Companies in the industry that are already operating – Oil Refining.
Source: La República
Date: April 25
Headline: Gas consumption grew 71% during the quarantine.
The Mercantile Exchange of Colombia, whose Vice President of Energy Markets is Andrés Pesca Ayala, revealed that during the week of April 13 to 19, there was a 71% increase in natural gas consumption, reaching 700 Gbtud. According to their report, three of the segments that drove the growth were residences, which increased by 21%, thermoelectric plants, which rose by 16%, and the industry, also with a rate of 16%. (KB)
Source: La República
Date: April 25
Headline: Brent and WTI closed higher after sharp declines.
After a tumultuous week for crude oil, the price of the WTI benchmark stood at $17.10, marking an increase of $0.60 by 3:10 p.m. yesterday. Meanwhile, Brent reached an increase of $0.51 and hit $21.83 per barrel. Despite this green closing that oil recorded on the last day of the week, prices have lost around 70% so far this year, due to the war between Russia and Saudi Arabia and the drop in demand, estimated at 30 million barrels, due to the containment measures for covid-19 announced by the governments of various countries. Regarding this outlook for the oil market, Axel Christensen, Director of Investment Strategy for Latin America at BlackRock, explained that “the futures market projects a price close to $35 a year from now. Much higher than the current negative price, but far from the $55 - $60 observed at the beginning of the year.”.
Source: La República
Date: April 25
Headline: The price of oil is sinking. By: Amylkar D. Acosta M.
On April 9, the long-awaited virtual summit of the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, finally took place, which along with its thirteen allies headed by Russia brings together around thirty producing countries, identified as OPEC+. It was about undoing the steps of the confrontation that had been caused by the disagreement between Saudi Arabia and Russia, which had triggered a price war that had led them to historic lows of US$22.71 per barrel of the Brent reference on March 31, its lowest quotation since November 2002, a decrease of 69% in the last 12 months. (…) Unlike the Brent reference crude, which had “only” dropped to US$25.59, the collapse of WTI was precipitated by the overflow of the capacity of the Cushing terminal (Oklahoma, southern U.S.), a site considered the crossroads of pipelines in the world, which constitutes the main crude storage center, which is unable to accommodate it.
Source: Semana
Date: April 25
Headline: «The Government is not taking all the measures it should take»
Jorge Enrique Robledo, senator of the Democratic Pole, believes that the Government is wrong to use banks as a vehicle to help in the coronavirus crisis. He asserts that this emergency presents an opportunity to make profound changes in the country's economy. (…) L.C.V.: Last week, water became more valuable than oil. We are more exposed than ever to oil… J.E.R.: In the pandemic, there are two types of countries. Those that will do poorly and those that will do very poorly. Colombia is in that second group, although there will also be some that will fare worse. Because here, in addition to the pandemic, we have a serious problem with the drop in oil prices, given that the colossal mistake was made of putting almost all the eggs in the oil basket; a mistake that many of us warned about. And now we coincide with the oil overproduction, which put Russia, Saudi Arabia, and the United States in a price war, with the great drop in consumption due to the pandemic. We are left in the worst of worlds. Life has been proving right those of us who have been labeled as crazy for decades.
Source: Semana
Date: April 25
Headline: Tankers full of black gold
Countries no longer have anywhere to store oil. There is a lot of supply and demand is not growing. According to data from IHS Markit, a global information provider, global oil demand fell in the first quarter of the year by 3.8 million barrels per day. This represents a crisis not seen since 2008. For this reason, there is oil stored in fields, tanks, and pipelines. But the most surprising thing is that the tankers are also at capacity and docked on the coasts. A map from Marine Traffic App shows this situation.
Source: La Patria
Date: April 25
Headline: Oil and public finances
The economy will not be able to function at full capacity until an effective solution to the pandemic appears. It seems that a much larger cut in oil production is required for prices to recover and the outlook to clear. The agreement from two weeks ago for daily supply to fall by 10 million barrels fell short, despite being the largest voluntary adjustment on record in decades. Analysts believe that this figure should be tripled or more to have positive effects in the market, as demand for fuel sales fell by 26.7% for April and 19.5% for May. Sales for June seem to remain at similar levels. In fact, after the unprecedented drop of the WTI denomination (from Texas, United States) to -37 dollars per barrel (due to the lack of storage), there was a slight recovery that pushed prices up, achieving a leveling although very below expectations, of just 20 dollars per barrel, or even less.
Institutional
Source: Caracol Radio
Date: April 24
Source: elespectador.com
Date: April 24
Headline: Fracking: a government bet on an inconvenient model
Recently, the Ministry of Mines and Energy published Decree 328 of 2020, which provides the guidelines for carrying out the so-called Comprehensive Pilot Research Projects (PPII) on Unconventional Hydrocarbon Deposits (YNC) through the hydraulic fracturing technique, popularly known as fracking. This regulatory instrument, heavily questioned by various social and academic sectors for the omissions of its recommendations and the guidelines of the Interdisciplinary Commission of Experts formed in 2018, stands as a significant step in the National Government's and companies' intentions to implement the technique in the near future, despite the current president stating during the electoral campaign that fracking would not be used during his administration.
Source: caracol.com.co
Date: April 24
Headline: Support of $7.300 million for more than five thousand service stations
In light of the 80 % reduction in sales at service stations across the country due to mandatory isolation, the Ministry of Mines and Energy approved the request from the National Federation of Liquid Fuels Derived from Petroleum, Fendipetróleo, to support the sector with $7.300 million, using resources from the Solidarity Protection Fund-Soldicom. It is a short-term aid to mitigate the negative effects of the emergency, indicated the president of the board of directors of Fendipetróleo, Jairo Gómez Fontalvo. (…) The resources will be distributed equitably among the more than 5,640 service stations, with which the boards of directors of Fendipetróleo and the Soldicom fund seek to ensure continuity in the sector and protect more than 45,000 direct jobs.
Colombian Association of Oil and Gas