The upward dynamics in the reference price of a barrel of oil Brent in international markets, which has been registered in the last year, but with greater intensity in the first three months of this year, it has allowed Colombia to have additional resources for its coffers.
It is enough to look at the country’s annual exports, which grew by 43% thanks to the hydrocarbon sector, which registered a 97% increase in foreign sales of crude oil, going from US$641 million, in February 2021, to US$1,261 million, in the same month of 2022.
Likewise, in foreign sales of oil, liquid fuels and other extractive products related to the industry, these practically doubled, since they went from US$2,939 million in February 2021 to ORyes$4,202 million for the second month of this year.
And it is striking, in the volume of exported hydrocarbons, which were sold abroad in February of this year, 14.7 million barrels of crude oil, which represents an increase of 32% compared to the same month last year. .
“The effect for Colombia on the balance of hydrocarbon sales abroad is positive because it is a net oil exporter, and from a fiscal point of view it will be something that will improve the country’s finances.”, Diego Mesa, Minister of Mines and Energy, has pointed out on several stages.
The head of the mining and energy portfolio has reiterated that the Nation’s oil industry represents 40% of total exports, and that it represents 12% to 15% of the Nation’s current income.
“However, with current prices per barrel, the resources would reach 20% of total income and 25% to 30% of direct foreign investment.”, explained the official.
The increase in foreign sales of hydrocarbons have marked the impulse of the country’s exports.
(See: Russia, in search of new markets for its oil, coal and gas).
According to the National Administrative Department of Statistics (Dane), in February 2022, exports of fuels and extractive industry products were US$2,041.5 million and showed a growth of 55.9% compared to February 2021, which means 48.6% of the total value of sales abroad of the country.
“This behavior was mainly explained by the increase in sales of oil, oil products and related products (75.7%), which contributed 46.7 percentage points to the variation of the group.”, explained Juan Daniel Oviedo, director of the technical entity.
For the period January-February 2022, exports of the group of fuels and extractive industry products were US$4,153.7 million and which means a growth of 64.2% compared to the same period of 2021.
In this regard, director Oviedo pointed out that this behavior was derived from the growth in foreign sales of oil, oil products and related products (54.6%), which contributed 37.5 percentage points.
With a price of a barrel of crude oil exceeding US$100 (US$104.64 last Tuesday) derived from the tension caused by Russia’s invasion of Ukraine, it will not only allow the country to balance its cash due to an increase in oil income, but also which in turn will help boost production, which would clear the way for it to produce the average million barrels per day (bpd).
With this Brent reference price in international markets, Colombia would represent an increase in extraction of close to 240,000 bpd, according to calculations by the Colombian Oil and Gas Association (ACP) and that would be added to the already estimated 760,000 bpd by 2022. , since the operating costs in the field would be optimized.
“The situation of high oil prices is an opportunity for the country to give more dynamism to the industry and take advantage of this cycle to generate the resources that the treasury needs not only for reactivation, but also for the implementation of social policies.”, said Francisco José Lloreda, president of the ACP.
The accounts of the sector projected last February that, with a barrel of crude oil above US$90, it would allow the country a production close to 900,000 bpd, now with a price in the international market that already exceeds US$100, the pumping of crude it could reach a million barrels per day, which would allow the country to increase its resources.
According to ACP calculations, for every US$1 that increases the price of Brent, The Nation receives between $350,000 and $400,000 million in additional income each year.
And Campetrol maintains that the oil GDP would grow in a range between 3.5% and 7.3%, which would represent an increase of between 8.7 pps and 12.5 pps with respect to the average growth of 2021.
COLOMBIA PLANS TO SELL OIL TO THE US
Colombia plans to export a surplus of 40,000 barrels of crude oil to the US in the face of the consequences of Russia’s invasion of Ukraine, which led the northern country to freeze crude oil purchases from Moscow.
Sources from the Ministry of Mines and Energy explained to Portafolio that, in the last meeting held by presidents Iván Duque and Joe Biden, the subject was discussed, taking into account that Colombia currently sells Washington 200,000 barrels of oil per day. The Government’s intention is to increase production to 80,000 barrels per day in one year, and sell 50% of that output to the US.
ALFONSO LOPEZ SUAREZ