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Colombia is leading the discussion on how to carry out a truly fair climate and energy transition. We're on the way to consolidating a donor group that will allow us to achieve an important financial package for the country," Environment Minister Susana Muhamad said in New York on Thursday.
Colombia will host the COP16 United Nations biodiversity conference in Cali at the end of October
Colombia launches $40 billion investment portfolio for energy, climate transition
With the analysts' estimates for 3.3% growth in world GDP in 2025, energy consumption could expand by six to nine million barrels of oil per day, so long as the global economy avoids a hard landing or a trade war. That totals as much as 3% growth in global energy demand.
Investors have turned bearish on oil amid fears of an OPEC+ price war and weak China oil demand.
But if world GDP grows 3.3% next year, energy demand will likely surge, Bank of America says.
They say the AI boom will spark data center demand, driving global energy consumption higher.
Investors shorting oil are walking into a 'bear trap' with energy demand set to surge, Bank of America says
Inventories Have Been Drawing Down
What we have also seen over recent months is relatively bullish changes in inventories. Although draws have been inconsistent relative to seasonal averages, crude oil inventories in particular have drawn down quite significantly over the past three months. Even though total crude and petroleum inventories have not drawn to the same extent, US crude inventories now stand at five-year lows.
US oil production continues to show signs of stagnant growth
With sentiment and positioning at all-time bearish levels, oil prices are poised for a significant short-squeeze to the upside.
Should US oil production growth continue to disappoint, the energy bull market is likely to continue
Crude Oil Primed for Explosive Short-Squeeze as Bearish Sentiment Peaks
The Uchuva-2 well that was suspended is an important hope for Colombia's dwindling gas reserves, which closed last year at 2.4 trillion cubic feet, equivalent to 6.1 years of consumption, the government's National Hydrocarbons Association reported.
The project's potential reserves are equivalent to 2.5 times Colombia's current reserves
Absent incentives and authorizations to encourage domestic gas output, the country is expected to be forced to expand its capacity to receive LNG imports, which would require the construction of an additional regasification terminal that is not yet in plans and to secure supply contracts, he added.
"The country has to decide whether to rely on imports of LNG... or really support the domestic production," he said.
HOUSTON/BOGOTA, Sept 19 (Reuters) - Colombia must decide soon whether to focus on imports of liquefied natural gas (LNG) or encourage domestic output of natural gas if it wants to avoid power blackouts, consultancy Wood Mackenzie's head of Americas Gas and LNG said on Thursday
Colombia needs a natgas strategy soon to avoid blackouts, analyst say
But current contracts will be respected, the energy ministry said in a statement.
"The 330 contracts for exploration and exploitation of hydrocarbons in Colombia will be respected," the statement said, adding that oil production has been rising since the new government took office, reaching as much as 779,000 barrels per day.
Of 207 exploration contracts, 117 are active, the ministry said.
"We want to reactivate the remainder to have those resources and take advantage of them correctly," said energy minister Irene Velez in the statement. "We have important gas resources in the Colombian Caribbean which potentially could become reserves and significantly increase the country's horizon of self-sufficiency
BOGOTA, Sept 13 (Reuters) - A court in Colombia has ordered the country's majority state-owned energy company Ecopetrol (ECO.CN), opens new tab and Brazilian partner Petrobras (PETR4.SA), opens new tab to halt activities at the Uchuva-2 offshore gas well.
In a court order dated Sept. 11, a judge said activities at the well, on the Tayrona block in Colombia's Caribbean, must stop after the companies failed to properly consult a local Indigenous community about the operation
the Andean country is set to extend that capacity by 1,240 MW across 22 projects in 2024, with up to an additional 1,800 MW in 44 projects that are pending permissions and other administrative procedures, the report said.
The average time it takes a small renewable energy project to start operating in the country is between around three to six years, 70% of which is taken up by some 15 administrative processes, the report found.
"We call for easing the execution of these projects," the report said. "Current entry times to start operating ... are excessively large compared to the size and impact times of the projects.
Reuters) - Colombia's renewable energy sector could get investment of up to $2.2 billion in 2024 across 66 projects that are soon to enter production or waiting to complete paperwork, renewable energy association SER Colombia said on Thursday.
Production of hydrocarbons could be affected in the coming days and may affect fuel supplies, Ecopetrol said in a statement, adding that the situation is compounded by social conflict at the company's Gibraltar gas field.
In a later statement, Cenit reported a new attack on the Cano Limon-Covenas pipeline, adding that 15 attacks had taken place against pipeline infrastructure around the same area since August.
The truckers are protesting an increase of 1,904 Colombian pesos (45 U.S. cents) per gallon to diesel prices which began on Saturday, arguing the price rise will affect logistics costs and national competitiveness.
BOGOTA, Sept 4 (Reuters) - Protests by truckers in Colombia, who are angry at an increase in diesel prices, have cut off the country's biggest cities and are threatening fuel supplies, though the government insists the hike is fair.
The truckers' strike and roadblocks, combined with attacks on the Cano Limon-Covenas and Bicentenario pipelines, also threaten operations at state-run oil company Ecopetrol (ECO.CN), opens new tab, the company said on Wednesday.
Meanwhile, the dollar remained steady after Republican presidential candidate Donald Trump was safe following what the FBI said appeared to be a second assassination attempt outside his golf course in Florida.
In the Middle East, Prime Minister Benjamin Netanyahu said Israel would inflict a "heavy price" on the Iran-aligned Houthis, after they reached central Israel with a missile on Sunday for the first time.
Lower interest rates will reduce the cost of borrowing, which can boost economic activity and lift demand for oil.
Reuters
Oil prices inch up on Fed rate cut outlook
The strike group, led by the aircraft carrier USS Abraham Lincoln and its squadron of F-35C fighter jets, was already heading towards the region, where it was scheduled to replace the USS Theodore Roosevelt aircraft carrier. Austin has now ordered it to increase its speed. Additionally, the USS Georgia, a nuclear-powered submarine carrying guided missiles that was already present within the Mediterranean, has been deployed to the area.
Is this an escalation? 12 ships now in the region...this could send energy thru the roof if regional war breaks out.
Colombia can expand its position in the global carbon offset market
Our outlook for carbon offsets suggests that in a net zero scenario overall demand could expand to around five billion tonnes by 2050. Colombia has strong potential to increase its investment in offsets, particularly from forestry and land use markets. Projects that can provide high-quality offsets will be able to realise a premium in the market.
Hydrogen-to-power strategies are key to decarbonisation pathways in Europe and Asia, making these key potential export markets for hydrogen produced in Colombia. We estimate the levelised cost of hydrogen (LCOH) in Colombia could be similar to Chile’s. Potential export volumes from Colombia would be globally competitive, especially into Europe.
Colombia Could Lead Latin America Through The Energy Transition
Cross-border strains between Israel and Lebanon's Hezbollah have been escalating in recent weeks, stoking fears of an all-out Israel-Hezbollah war that could draw in other regional powers, including major oil producer Iran.
"The geopolitical risk premium has been coming back to the market as a war between Israel and Lebanon is likely to see direct involvement of Iran, that would be a concern," Andrew Lipow of Houston-based Lipow Oil Associates said.
Reuters
Oil settles slightly up as global supply risks offset US demand concerns
Crude remains on course for a monthly gain after OPEC+ extended supply cuts and said that any subsequent plan to return barrels would hinge on market conditions. Traders are also tracking the demand outlook, with refineries in Asia bringing back some capacity after maintenance despite poor margins.
Oil Rises as Stockpile Drop Extends Rally Driven by Risk-On Tone
We remain supportive toward the oil market with a deficit over the third quarter set to tighten the oil balance,” said Warren Patterson, Singapore-based head of commodities strategy at ING Groep NV. “Speculators have also become more constructive toward oil as we move into summer.”
Crude still remains on track for a monthly gain, and there are signs of rising gasoline demand in the US and healthy demand for air travel, which is aiding the outlook. The prompt spread for Brent has strengthened this month in a bullish backwardation structure, signaling tightening supply.
two vessels being attacked, with one abandoned after flooding and another sustaining moderate damage. A coal-carrier sunk recently as Houthi militants ramped-up hostilities in the region.
Oil prices are also likely to remain supported by a growing geopolitical risk premium driven by conflict in the Middle East, said ActivTrades analyst Ricardo Evangelista.
Israeli forces pounded areas in the central Gaza Strip overnight, while tanks deepened their advance into Rafah in the south.
However, expectations of an inventories build appear to be overshadowing fears of escalating geopolitical stress for now, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
Oil prices rise on US crude draw; jobs data feeds rate cut hopes
Softer U.S. Inflation data seen this week, spurring hopes for sooner rates cuts, also helped lift sentiment on oil, with many now pricing in two rate cuts for the year.
The reassurance from OPEC arrived as traders digested mostly bullish forecast for global oil demand. The U.S. Energy Information Administration lifted its world oil demand estimate to 104.5 million barrels per day for next year, up from a prior forecast of 104.3 million bpd, while OPEC maintained its outlook for strong global oil demand in 2024
Colombia's proposed anti-fracking bill has been shelved due to a lack of debate in Congress. The bill, an essential part of the government's plan to transition away from fossil fuels, will be reintroduced in the next legislative session starting July 20, according to Environment Minister Susana Muhamad.
He said the plan will receive high investment - without providing specific details - and Colombia would offer incentives, including tax deductions, to encourage the participation of the private sector.
Colombia's position as the country with the sixth-greatest quantity of renewable water resources puts it in an ideal position to produce green hydrogen - which is made by splitting water - Mesa said, although it will also be able to produce blue hydrogen, when natural gas is split into its component parts.