Energy & Utilities
From The Report: Colombia 2019
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With the new administration’s pro-business, pro-investment stance, in addition to improvements in international prices, the Colombian oil and gas sector is anticipating increased investment over the coming years. Its efforts to diversify and strengthen its energy mix by capitalising on the country’s abundance of renewable sources and further developing its hydropower segment will likely continue to attract the interest of new industry players. As Colombia’s proven oil and gas reserves begin to decline after having reached their peaks, the announcement of new exploration activities and the first fracking pilot project are reassuring signs that the sector is moving in the right direction. This chapter contains interviews with María Fernanda Suárez, Minister of Mines and Energy; and Astrid Álvarez Hernández, CEO, Grupo Energía de Bogotá.

Articles from this Chapter

Overview

Momentum builds as oil and gas resources are expanded: Evolving approach
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Following the drop in commodity prices that started in 2014, Colombia experienced several challenging years of dwindling investment in the energy sector. However, the industry is poised to regain momentum, and support from the administration is already yielding results across multiple segments. A number of measures have been implemented by the government that should improve Colombia’s attractiveness for foreign participation in the energy industry. After regaining its position as the third-largest…

Interview

Efficient transformation: María Fernanda Suárez, Minister of Mines and Energy, on non- conventional sources diversifying the energy mix
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Interview:María Fernanda Suárez What specific measures are necessary to develop Colombia’s hydrocarbons reserves? MARÍA FERNANDA SUÁREZ: Regarding hydrocarbons, we want to invigorate the industry to ensure we maintain self-sufficient energy production. This is under threat because we currently have only 5.7 and 11.7 years of oil and gas reserves, respectively. Projections show that if the country does not find new sources by 2021-23, importing gas may be necessary to respond to rising…

Analysis

Non-conventional deposits energise activity in the industry: Promising finds
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With no major onshore oil discoveries since 2009, Colombia’s oil and gas reserves have dwindled. The country has thus turned to non-conventional deposits as a means to boost production in the medium to long term. While this segment has historically been dominated by offshore activity, the government’s aim to boost proven reserves, diversify its sources and ensure long-term self-sufficiency has given the fracking industry ample opportunity to expand. The government estimates that fracking…

Interview

Power moves: Astrid Álvarez Hernández, CEO, Grupo Energía Bogotá (GEB), on the development of the midstream segment
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Interview: Astrid Álvarez Hernández In which areas of energy transport and transmission is there potential for investment? ASTRID ÁLVAREZ HERNÁNDEZ: Colombia boasts a developed and efficient transmission system, with 15,000 km of network and a 97% coverage rate. It reaches most of the country, and the remaining remote areas are supplied by independent generators. Moreover, Colombia has one of the cleanest energy matrices in the world: of its 17,300 MW of installed capacity, 70% comes from…

Analysis

Bright future: New laws and partnerships offer high potential for renewables
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Colombia is redoubling efforts to include renewable energy in its power supply mix. This has meant moving away from its dependence on hydroelectricity, which has been made unreliable due to shifting climate patterns. Law No. 1715 was passed in May 2014, creating a foundation for the adoption of these technologies by regulating integration of non-conventional renewable energy sources to the national energy system. The law stipulates a number of incentives for investment in the sector, including…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
OBG
plus

Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…