Heard On The Street Colombia: Fracking, Budget Price, Shale, Gas Supply

(Energy Analytics Institute, Aaron Simonsky, 9.Jun.2019) — Heard on the street related to the Colombian upstream, midstream, downstream and renewable energies sectors.

— Colombia’s state oil company Ecopetrol plans to spend $500 million between 2019-2021 on an unconventional project that includes drilling 20 wells to gauge community interest and potential to boost natural gas reserves, Ecopetrol says.

— Ecopetrol is using a $65/bbl oil price for its 2019 budget, Ecopetrol says.

— Colombia is moving forward with mass usage of natural gas across the country in an effort to diversify its energy matrix and move away from more contaminating fuel sources. An estimated 9.5 million families, commercial establishments and industries use gas, in addition to some 560,000 light public transport vehicles that have been converted to use the fuel in the last 15 years, Colombia’s Energy and Mines Ministry says.

“Mining is a fundamental part of economic development and social engine for the country. The challenge is to change the debate. Not to say no to mining, but how to do mining”

– Colombia’s Energy and Mines Minister María Fernanda Suárez said in a twitter post

— Unconventional resources hold potential to increase Colombia’s existing portfolio of crude oil reserves by 2.4 to 7 billion barrels, ACIPET says in twitter post.

— Colombia today has enough natural gas to supply the current demand (with local production or import). Reserve figures revealed by Energy and Mines Minister María Fernanda Suárez mean the country has to advance in new gas exploration and exploration projects, sources tell Energy Analytics Institute.

— More exploration in Colombia is necessary. The county should get used to drilling 100-150 wells per year as well as conducting 2,000 to 4,000 square kilometers per year of seismic, Ecopetrol President Felipe Bayon says.

— If Colombia doesn’t move forward with fracking it could be forced to import oil and gas from countries that utilize fracking such as the U.S. and that obviously benefit from employing the practice, sources tell Energy Analytics Institute.

— One of the worries of the peoples of the communities near locations were fracking is carried out is that we would compete for their water sources, sources tell Energy Analytics Institute.

“During fracking 30% of the water fluids will return to the source, so we have to treat it, store it and reuse it”

– Ecopetrol President Felipe Bayon said during a discussion in Bogota

— The fracking activities in Colombia are located close to existing infrastructure as well as refinery, Ecopetrol President Felipe Bayon says.

Related Story: Colombian Streets Filled With Protests Against Fracking

— Colombia seems torn into two factions: those mostly in government and industry that favor fracking to boost crude oil and natural gas reserves and revenues to government coffers and those that oppose it for environmental reasons, according to Energy Analytics Institute.

— Colombia’s prospect of accessing piped natural gas from Venezuela continues to be bleak and for the foreseeable future, and gas from the OPEC country shouldn’t be counted on when thinking about security of supply moving forward, sources tell Energy Analytics Institute.

Related Story: LatAmNRG Q&A Series With Barry Blacklock About Water Management In Fracking

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© Energy Analytics Institute (EAI)

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