ELN attacks Colombian police also target country's oil industry

Now that the Colombian government is finalizing negotiations to end its decades-long conflict with the FARC, the other guerrilla group in the country, the ELN, has upped its efforts to force the government to negotiate an additional agreement. Colombian president Juan Manuel Santos blamed the ELN for the bombing of a police car in the Colombian department of Casanare. Three police officers were killed and at least seven were injured as they were patrolling to protect the Cusiana oil field, the largest in Colombia. Colombian Police Chief Jorge Nieto called the perpetrators “cowards” and praised the police officers for their heroism and sacrifice.

In Colombian oil news, Colombian state-owned oil company Ecopetrol announced a new $478 million austerity plan for 2016. This new austerity plan is in addition to the $1 billion savings plan that the company announced last year. Ecopetrol has started implementing a number of measures to cut costs, including: freezing expense budgets at 50%, a hiring freeze except for critical operational roles, the adoption of a new model of contract management, a minimal travel budget, cutting all non-essential consulting and professional services, a two-thirds drop in its advertising and sponsorship expenditures, continued divestment from non-strategic assets, and more limited oil exploration.

Colombia and other Latin America oil exporters are desperate to raise oil prices, and are discussing the possibility of pressing OPEC to take measures to raise oil prices. Ecuador and Venezuela are the only Latin American OPEC members, but Colombia and Mexico are also deeply interested in pushing for a rise in oil prices.