Energy & Utilities
From The Report: Colombia 2014
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In the past 10 years, Colombia has emerged as one of Latin America’s leading hydrocarbons producers. With just over 1m barrels per day of production in 2013, Colombia trailed only Mexico, Venezuela and Brazil in the region. On a relative basis, natural gas production, at 1.2bn cu feet per day, is more modest, but has also grown every year but one since 2003. With one of the lowest reserves-to-production ratios among the world’s major oil producers, the sector’s primary problem is limited reserves. The industry has begun exploring new unconventional hydrocarbons resources such as shale oil and gas, offshore oil and gas, and coal-bed methane, all of which have the potential to become significant sources of new revenue for the industry. With stable production from conventional sources and expanding opportunities in unconventional and offshore blocks, Colombia’s energy sector appears poised to sustain at least moderate levels of growth. This chapter contains interviews with Javier Gutiérrez, President, Ecopetrol; and Javier Betancourt, President, National Agency of Hydrocarbons (ANH).

Articles from this Chapter

Overview

As production increases following liberalisation, new unconventional sources are providing opportunities
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During the past 10 years, Colombia has emerged as one of Latin America’s leading hydrocarbons producers. With just over 1m barrels per day (bpd) of production in 2013, Colombia trailed only Mexico, Venezuela and Brazil in the region. On a relative basis, natural gas production, at 1.2bn cu feet (bcf) per day, is more modest, but has grown every year but one since 2003. The primary problem the industry faces is limited reserves. The modern Colombian oil industry got its start in the 1970s following…

Interview

OBG talks to Javier Gutiérrez, President, Ecopetrol
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Interview:Javier Gutiérrez What is the motivation behind the recent oil auctions and what firms have shown interest? JAVIER GUTIÉRREZ: The 2014 round was organised by the National Hydrocarbons Agency to increase the attractiveness of the sector among major global players. These companies have shown the greatest interest in non-conventional oil and offshore operations in the past two years. We are talking about firms such as Exxon-Mobil for unconventional; Anadarko Petroleum, Petroleo Brasileiro…

Analysis

New links should help to dramatically increase competitiveness
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Private companies and Ecopetrol have poured money into pipeline construction projects in the last several years to increase capacity, improve distribution throughout the country and decrease transport by road. A mountainous geography and substandard road networks make shipping by truck an expensive and slow proposition. However, many oil companies working in Colombia have been forced to move their production by this method. This situation has arisen because production has grown to the point that…

Interview

OBG talks to Javier Betancourt, President, National Hydrocarbons Agency (ANH)
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Interview:Javier Betancourt The ANH hopes to raise $2.6bn with the 2014 oil round. How confident are you that this will happen? JAVIER BETANCOURT: Investment in the sector is obviously welcome, but that is just a means to achieve the ANH’s goal, which is to increase reserves. The round has already proved extremely efficient in drawing investment and interest in exploration. The 2014 round offers possibilities for everyone, including blocks with prospects not only in conventional oil but…

Analysis

The sector is increasingly turning to unconventional sources
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As of mid-2014 Colombia was on the verge of tapping its vast reserves of shale and offshore oil and gas. Exploiting these resources will help the country’s hydrocarbons sector tackle its two primary challenges: low reserves and limited production growth. Despite its position as one of the world’s leading producers, Colombia has an extremely low reserves-to-production ratio (R/P). At 2013 levels of production, oil reserves would be exhausted in about six years, with R/P being even shorter if not…

Analysis

Power play: With extensive hydro resources, the country is working to bolster the sector and existing networks
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The electricity plants and transmission network are among the strongest aspects of Colombia’s infrastructure and a point of reference for Latin American countries seeking to modernise their own grids. At home, Colombia’s robust electricity infrastructure has been a boon to growth – especially considering the deficiencies in other parts of the public works network – and even a money-maker, as electricity exports to neighbours bring in increasing amounts of revenue. The ability to produce surpluses…