The Peruvian oil industry - one big mess

On Friday, Peruvian business journal El Comercio reported on the third Petro-Perú oil spill already this year. This oil spill was because of another pipeline break, this time in Jaén, in the department of Cajamarca. According to Radio Marañón, the spill happened on Wednesday, just 50 meters form the Huancabamba River. The report added that Petro-Perú officials have closed off the area of the spill to the press.

El Comercio also published an opinion piece by businessman Franco Giuffa commenting on the destruction of Petro-Perú’s reputation. He started by noting that the government overhauled Petro-Perú’s board and revised the company’s strategy, but the scandals have not relented. The government has lost faith in the company’s ability to turn itself around. Giuffa recounted official statements by the president of Petro-Perú, who blamed one recent oil spill on a possible lightning strike on the pipeline. Peruvian Minister of the Environment Javier Pulgar Vidal, however, called the claim “absurd.”

Lastly, El Comercio published an editorial defending the importance of the Peruvian mining industry to the country’s continued economic growth. The editorial noted that Peru’s surprising 3.26% GDP growth in 2015, and even more impressive 6.39% in December, were driven by tremendous growth in the country’s mining industry. El Comercio argued that although the GDP growth is appreciated in Peru, its cause, the mining industry, is demonized. The journal believes that the mining industry should receive the proper recognition and appreciation for its important role in the Peruvian economy.