Energy & Utilities
From The Report: Colombia 2016
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Over the past decade the oil industry has been at the centre of Colombia’s economic growth. The sector accounted for nearly one-fifth of all foreign direct investment over the past 10 years, approximately half of all export revenues and, through taxes and royalties, provided up to 30% of government income. Consequently, the fall in the oil price from more than $100 per barrel in mid-2014 to less than $30 in early 2016 has had a large impact on the national economy. Major companies have been forced to drastically re-adjust their growth plans and streamline operations. While production has plateaued, exploration work has dropped off sharply. However, promising offshore discoveries, a nascent shale gas segment, and a new, cleaner and more efficient refinery underpin optimism for the long- term future of the industry.

This chapter includes an interview with Francisco José Lloreda, President, Colombian Petroleum Association. 

Articles from this Chapter

Overview

Re-aligning: Industry players look to adapt to multifaceted challenges
OBG
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Over the past decade the oil industry has been at the centre of Colombia’s economic growth. The sector accounted for nearly one-fifth of all foreign direct investment (FDI) over the past 10 years, approximately half of all export revenues and, through taxes and royalties, provided up to 30% of government income. Consequently, the fall in the oil price from more than $100 per barrel in mid-2014 to less than $30 in early 2016, and expected to drop even lower, has had a large impact on the national…

Interview

One step ahead: OBG talks to Francisco José Lloreda, President, Colombian Petroleum Association
OBG
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Interview:Francisco José Lloreda How will lower oil prices affect drilling activity? FRANCISCO JOSÉ LLOREDA:Over the past 10 years, Colombia has made considerable progress in the field of drilling exploration. In 2014, 113 wells were drilled, which is a significant increase from an average of 20 wells only a decade ago. Although it is not a high number when compared to other oil-producing countries, it highlights a real interest in oil exploration in Colombia. Taking into account…

Analysis

Promoting exploration: New measures required to reinvigorate sector activity
OBG
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The prevailing low oil price saw exploration and production (E&P) companies cut costs in 2014 and 2015. In order to produce crude profitably at prices of under $40 per barrel, expensive greenfield exploration programmes have been put on the back-burner. However, if Colombia is to maintain its production target of 1m barrels per day (bpd) and prevent the reserves to production ratio – which stood at just 6.4 years at the end of 2015 – from slipping any further, new discoveries are necessary.…