Wednesday, March 23, 2016

Colombian oil investment plummeted in 2015

According to Colombian daily El Espectador, investment in exploration and production in the Colombian oil industry fell by 72% in 2015 over the amount invested in 2014, to a low of just $396 million. Campetrol, the Colombian oil sector trade association that carried out the study of oil sector investment, warned that the lack of investment is particularly concerning because Colombia’s oil reserves are only expected to last another 6.5 years.

Campetrol emphasized that, “From there, it is important that the most important oil company in Colombia, Ecopetrol, dynamize exploration in order to avoid that the Nation be without oil, as this would necessarily lead to importation.” El Espectador noted that the decline in oil sector investment especially began to be felt starting in December 2014, when oil companies all around the globe started slashing their investment budgets due to reduced oil prices.


In related news, the International Monetary Fund revised downwards its expectations for economic growth in Colombia for this year, from 2.7% to just 2.5%. Jorge Roldos, the head of the Fund’s mission to Colombia, explained that the change was due to the lingering effects of the Colombian oil crisis. He stressed that the country needs to act quickly to pass a structural tax reform bill to replace the oil revenue.

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