Colombian oil industry collapses due to violent protests | OilPrice.com

March 2020 Fall in oil prices and severe Coronavirus epidemic in 2020 Severely damaged jobs Colombia’s economy is struggling to recover.

Attempts by the local government to revive the economy and key sectors of the economy, including the hydrocarbon sector in Bogota, have failed due to intense political unrest and prolonged insecurity. First quarter 2021 gross domestic product (Spain), although rising 1.1% year-on-year, the Colombian economy was still 9% more sensitive than in the previous quarter, which was affected by various measures aimed at controlling the epidemic.

That came as a shock to Colombia for 2020 as GDP declines About 7% Because of a severe pandemic. The failure of President Duke’s administration to fully open up the oil industry will have a significant impact on Colombia’s already weak economy, which accounts for one-third of oil exports in the first half of 2020.

The 2021 budget deficit is the main source of revenue for Bogota crude oil, which accounts for about 9% of GDP. To close the fiscal gap, at the end of April 2021, President Duke proposed a tax reform for all Colombians and for most businesses, including the hydrocarbon sector. That sparked a nationwide six-week-long and deadly anti-government protest 45 opponents In the hands of authority.

Road closures and various community restrictions in response to the Duke administration’s severe maneuvering have forced the closure of coastal drones in many parts of Colombia. Influence Andean oil production. By early June 2021, Colombia’s crude oil production had dropped to 650,884 barrels per day for several years. That bogota had a long history of production and in 2013 and again in 2015 alone was less than a million barrels a day.

Since then, Colombia’s hydrocarbon production has been declining, which has weighed on the country’s economic performance and government revenues since the end of 2014, when the price of oil plummeted. June 2021 Product data According to the Spanish Ministry of Mines and Energy, Brent is struggling to revive its oil and gas sector by about 5 percent, starting in early 2021. Colombia produced an average of 694,151 barrels of crude oil per month earlier than June, 1.33% less, 4.9% per annum, and lower petroleum production for more than a decade. Natural gas production, on the other hand, increased by 9.75% per month to 1.065 million cubic feet per month, although that was 2.83% less than the same period a year ago.

Source: Colombia Ministry of Mines and Energy, USA

Colombia’s monthly hydrocarbon production averaged 877,751 barrels a day, down 1.33% from May 2021 and 4.47% a year ago.

Significantly, the number of operating devices has gradually increased. The baker Hughes International X-ray count By the end of July 2021, there will be 19 active digging tools, more than a month earlier, about four times as many as the five active tools a year ago.

Source: Baker Hughes and the American EIA.

If the security situation does not deteriorate further and anti-government protests resume, the growing X-ray count is good for high oil production.

Current production figures show that Colombia’s vital hydrocarbon sector is struggling to recover despite rising oil prices. The poor performance in June 2021 may have been due to coercion by coastal oil suppliers Closing works Response to anti-government protests and sanctions. Weakened oil production will weigh heavily on an already weak economy, with gross domestic product declining by 6.8 percent by 2020, and the Central Bank of Colombia expects the economy to be weak. The bank A recent walk A.D. Unemployment and trade confidence have improved in anticipation of rapid economic recovery due to the country’s anti-government protests, which forecast 6.5% to 7.5% of GDP growth in 2021. That will depend on whether the Duke administration decides to go into turmoil if it is severely structured by 2021 Year of Rebellion Reduce social tensions in Colombia over the next decade and attract foreign investment.

Investment from foreign power companies is key to boosting petroleum production and exploration activities to boost small oil reserves. High political turmoil, the threat of multiple anti-government protests, high volatility, about $ 45 per barrel, and ongoing Security Crisis They all have a huge impact on the confidence of foreign power investors. Concerns over those issues are growing in the run-up to the 2018 Colombian presidential election, with former guerrilla Gustavo Petro set to win the next presidential election. Petro During the 2018 election, Colombia launched an anti-oil industry forum aimed at reducing its dependence on oil and preventing its entry. Hydraulic fracture To Colombia.

By Matthew Smith to Oilprice.com

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