Research poses new challenges in the current situation of the hydrocarbons sector in Colombia

Relevant findings and conclusions about the current situation of the hydrocarbons sector were presented today at the launch of the UNDP Notebooks, a series of four investigations carried out by a group of academics, which pose the various challenges that the country must assume to continue promoting development of the hydrocarbon sector in Colombia.

The UNDP Notebooks, presented today to members of industry and government, deepen issues such as the expansion of the sector in the country, local economic impacts against the change in the price of oil, the importance of the territories and their communities around the industry, among others.

The research carried out by Astrid Martínez, Jonathan Malagón, Francisco Gutiérrez Sanín and Jairo Núñez had the support and effort of the Ministry of Interior, the Ministry of Mines, Ecopetrol, the United Nations Development Program and the National Hydrocarbons Agency.

Source: ANH

“This work was carried out within the framework of the Territorial Hydrocarbons Strategy (ETH), which is led by the ANH, and its main objective is to present, from an integral perspective, the situation of the hydrocarbons sector and its problems, to detail what are the tools that would allow a better development of the hydrocarbon activity in the country, hand in hand with the implementation of a sustainable development model, and always focused on human progress in the different regions of the country where the activities of the industry are carried out, in its exploration and production process, ”said Orlando Velandia, President in charge of the National Hydrocarbons Agency at the opening of the conversation that was conducted to present the investigations.

The data presented in the investigations are of high importance for the analysis of the hydrocarbon sector. An example of this, as revealed by Astrid Martínez who conducted a thorough study of the impact of the price of oil on territorial finance, public and private social investment in the hydrocarbons sector in the different regions of Colombia, and which will serve as a first level input for the formulation of public policies and strategies that contribute to the development of the regions, the strengthening of the sector and the attenuation of the impacts of the international situation.

Meanwhile, Jonathan Malagón’s research includes a diagnosis of the competitiveness of the hydrocarbon sector in the country’s departments, taking into account not only conventional indicators, such as the cost of extraction per barrel or the cost of transport, but additional elements such as the regulatory framework in different regions or administrative expenditure at the level of the producing firm.

The third notebook, written by Francisco Gutiérrez Sanín, focuses on the dynamics of social protest related to the hydrocarbon industry, seeking to clarify the motivations and developments that these present throughout the relationships between communities, industry and authorities to national and local level. It also develops an analysis that allows us to reflect on the place occupied by the dynamics of violence in the country within the social conflict of the sector.

Finally, Jairo Núñez’s research deals with an analysis of the costs associated with the conflict in the hydrocarbons sector. For this, estimates were made to assess the effect of the blockages in the industry on total revenues and municipal production. Among the most important points, it was identified that a 1% increase in conflicts generates a 0.06% decrease in total municipal per capita income and a 0.125% decrease in oil production. According to the investigation, the growth that conflicts have had between 2010 and 2014 have cost only the producing municipalities 217 billion pesos.

As noted by Inka Mattila, Deputy Director of UNDP, “the analysis that has been carried out seeks to submit recommendations to local and regional authorities that allow them to establish actions that mitigate the conditions of the current situation.” The presentation of the UNDP Notebooks, was attended by the President (e) of the ANH, the president of CAMPETROL Rubén Darío Lizarralde, and the vice president of Ecopetrol S.A, Eduardo Uribe.

In the discussion that took place later, the importance of the efforts made through the Territorial Hydrocarbons Strategy for the promotion of dialogue, strengthening and articulation of actors, as well as for the prevention and transformation of conflicts was highlighted.

“These investigations are of great value to guarantee the success of Phase II 2016 – 2017 of the Territorial Hydrocarbons Strategy, which is based on institutionalization, decentralization and results management. Today’s call to the entire industry is to actively participate in the construction of best practices to enhance the development of this sector as a relevant actor in the Colombian economy, ”Velandia concluded at the end of the event

Source: ANH

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