During her speech on the panel “The different paths to the energy transition” at the World Economic Forum, the Minister of Mines and Energy, Irene Vélez, stated that the government had made the decision not toor deliver new oil and gas exploration and production contracts.
(Read: ‘Government has not really said how it will replace oil revenues’).
Although the Ministry of Finance had explained that this was not a decision taken, but that it was being an analysis to establish in economic terms how necessary it was to give or not new areas.
The announcement was defended by President Gustavo Petro, who, according to EFE, affirmed that “We are convinced that a strong investment in tourism and in the country’s capacity and potential for clean energy generation could, in the short term, in a transition, fill the gaps that the fossil economy on which we have depended can leave“.
(Keep reading: Is it possible to replace oil currencies with tourism?).
This statement has created reactions of different actors who have shown their disagreement with the government’s position. “In an economy like the Colombian one, giving up the main source of foreign currency income requires a specific and immediate program to replace it. Otherwise the consequences may be irreparable”, said Bruce Mac Master, president of Andi.
Even from the government itself, voices have come out that question the decision. José Roberto Acosta, director of Public Credit, the energy transition will take about 20 years and Ecopetrol contributes 10% of the General Budget of the Nation, “This must change, but it will take time.”, he stated on his Twitter account. He added that the country requires income from taxes and royalties.
At the moment, the Ministry of Finance has not confirmed if this is a decision that was made after the analyzes that explained that they were being done with other portfolios and government entities.
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