Francisco Lloreda, the president of the Colombian Association of Oil and Gas (ACP) spoke of the announcement of the Minister Delaware mines Y Energy, irene Velez, within the framework of the World Economic Forum in Davos (Switzerland), not to sign new oil and gas exploration contracts in Colombia and their effects on the country.
(Also: Duque responds to Irene Vélez: ‘stopping oil exploration is social suicide’)
What does industry contribute so much to GDP, in royalties and exports for the economy?
The country depends on fuels derived from oil and gas for 99 percent. Without transition in the automotive fleet there is no energy transition. You need to give it priority.
The hydrocarbons industry is essential for the economic stability of the country, national financing and that of the departments and municipalities, since about 40 percent of exports depend on this sector, 20 percent of the Nation’s fiscal income and, of the total, it is 87 percent of the royalties.
Furthermore, in GDP it is 5 percent. Apart from the security and energy sovereignty of Colombia.
What does the country lose by not renewing now?
I hope that what the Minister of Mines, Irene Vélez, has said, is not a definitive decision of the Government, because it is not necessary for Colombia to aim at withering the oil and gas industry and also it is not necessary to stop the exploratory dynamics of the country .
(Also: The challenge of attracting foreign tourism to replace oil revenues)
The last time this happened in the midst of a price crisis between 2014 and 2015, Colombia went from producing one million barrels to 750,000, and the fields have a natural decline and if they are not replaced, that bill will happen at some point. It is necessary to sow oil and gas to continue reaping it, and it is not incompatible with a responsible energy transition process.
Does this decision affect the country’s production?
Undoubtedly, the impact may not be immediate thanks to the proven reserves, which are 8 years old, and this is a gradual process, in 10 it will be too late and we will pay the piper.
Can this decision carry out the exit of companies from the country?
This is a globally competitive market, companies will do their cost-benefit analysis. We don’t think we have to go there. For several years, the profile of oil companies has varied and there are various decisions. Some think about doing them in the short and medium term, but uncertainties must be eliminated.
Strong questions from oil tankers for announcement of not signing new contracts
Could tourism replace oil in the short term?