Monday, October 26, 2015

El Niño to produce gas deficit in Colombia in 2016

­­On Friday, Colombian business journal Portafolio reported that, according to projections from Colombian state oil company Ecopetrol, the control will not be able to meet its demand for natural gas in 2016 with domestic production alone. Ecopetrol projects that, in the first quarter of 2016, domestic demand will be 1,331 Gbtu, while the gas on offer will total just 1,089, coming 18% short of meeting the demand.

Naturgas president Educardo Pizano explained that a surge in demand from the country’s energy sector created the imbalance. Alternatives suggested by Pizano and Ecopetrol president Juan Carlos Echeverry include purchasing surplus gas from Venezuela and authorizing environmental licenses for natural gas production from existing coalfields.

Last week, oil leaders and experts from around the region met in Bogotá to discuss options for stimulating the Colombian oil sector. Francisco Lloreda, president of the Colombian Petroleum Association, stressed that the country should focus on not just stimulating the oil sector in the short term, but also on creating a stronger oil industry for long term.


Nonetheless, Colombian vice minister for Energy, Carlos Eraso, enumerated the various measures undertaken by the Colombian government in the last year: “lengthening times for the exploratory phase, freeing up insurance, modifying offshore contracts, and technical regulations for non-conventional drilling.”

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