Sunday, February 15, 2015

More handwringing over Colombia's oil industry

Campetrol, the labor union that represents Colombian workers in the oil industry, met with the Minister of Mines and Energy to discuss the crisis currently affecting the country’s oil sector. Campetrol reiterated the same concern that all of the other players in the industry have made: Colombia needs more oil exploration. Rubén Darío Lizarralde, the president of Campetrol, warned that if the country does not invest in more exploration, the country could become a net importer of crude oil within a decade. He added that the fall of the oil industry would also have a tremendously negative impact on employment in the country, affecting not just those who work directly for oil companies, but also people up and down the greater oil sector supply chain. He explained that in many of these rural communities, there are no other employers.

Nonetheless, as Alejandro Martínez, an analyst and founding partner of AMZ Consulting, told Colombia business journal Portafolio, oil companies really don’t have a choice in the matter. They’ve been forced to draw resources away from exploration and invest instead in incremental improvements to production. Colombian state oil company Ecopetrol at least is still investing in exploration. The company announced on Friday that it is drilling three new offshore wells in 2015.


In related news, Colombian business journal Dinero reported on a conference organized by the National University of Colombia’s Center for Mining Thought. Ex-mining minister and current president of the Center, Cecilia López Montaño, argued that the country failed to take advantage of the opportunity provided by the commodities prices boom to create a real productive base for the national economy.  She stressed that Colombia should invest in developing a productive rural sector, a modern industrial sector, and a less informal services sector.

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