Thursday, April 2, 2015

Colombia keeps a close eye on global oil prices

It’s been a quiet few days for the oil and gas and mining sectors in Colombia. Experts and observers have mostly kept their attention fixed on the international negotiations regarding Iran’s nuclear program, and the effects that the partially negotiated settlement has had on global oil prices. Oil industry observers expect oil prices to fall even further than their already-low levels if the negotiations continue to progress. Not only would prices plummet in the short-term thanks to an influx of oil that Iran currently has in storage, but foreign investment would also bolster the Iranian oil industry and allow it to fully take advantage of the country’s massive oil reserves.

This news would disappoint the Colombian oil industry, as it hopes that oil prices will rebound and stimulate increased investment in exploration in the country. The Colombian oil industry had initially hoped that investment in the country’s shale oil potential could grow its meager oil reserves, but a prolonged period of a sub-$50 price per barrel would do just the opposite. It would decimate the Colombian oil industry, which has been one of the key drivers of the country’s economic growth over the last 15 years.


In other news, Mammoet USA announced that it had completed a large heavy lifting and transport project at the largest oil refinery in Colombia, the Reficar Refinery. Mammoet managed all overland transportation, inland shipping, and on-site lifting.

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