Colombia increases in oil production for 1st time since Feb 2014: govt

Posted on Jul 8 2014 - 6:23pm by TNN
(Photo: Empleos Petroleros)

Colombian oil production surpassed one million barrels in June of 2014, a more than 6% increase over May, the Ministry of Mines and Energy.

The Ministry of Mines and Energy reported on Monday a 6.06% increase in oil production compared to June, reaching 1.008 million barrels a day. This figure is an improvement over the 950,000 barrels claimed in May.

According to the Ministry, this gives Colombia a production average of 981,000 barrels a day in 2014, but that’s more or less where average Colombian production was in 2012: 944,000 barrels a day or 344 million barrels for the year, according to the CIA World Factbook.

First increase since February

The increase is the first time production has increased in the country since February of this year, according to Colombian business magazine Portafolio. The average production of oil per day in 2013 reached 1.007 million barrels per day, on par with this month’s results, while the government’s goal was 1.04 million barrels per day, according to Portafolio.

At the current extraction rate, Colombia’s reserves will last about seven years, according to a statement last year from the Minister of Mines and Energy.

MORE: 7 years of oil reserves no ‘doomsday scenario’ for Colombia: Analyst

The main obstacles to production in the month of June were attacks on the Caño Limon-Coveñas pipeline by the ELN came at the cost of approximately 5,200 barrels per day, according to the Ministry.

More than 46% of exports from oil alone

Between January and July of 2013, Colombian exports amounted to $33.9 billion, according to the latest figures from the Colombian Ministry of Commerce, Industry and Tourism. Of this, $15.7 billion, or 46.3% of total export dollars, was from petroleum alone.

In late June, it was reported that Colombia was benefiting from a spike in oil prices of 4% caused by the ongoing political crisis/conflict in Iraq, offsetting the drop in oil production and exportation experienced in Colombia.

MORE: Higher world oil prices from Iraq crisis offsetting Colombia’s export losses: govt

According to the World Factbook, Colombia’s proven oil reserves as of January 1, 2013, were 2.417 billion barrels. Production in Colombia has been dropping due to the reduction in oil reserves. The effect on the balance of trade, should Colombia become a net importer, could be dramatic as roughly half of Colombia’s export income comes from oil and its byproducts.

Colombia has the fifth largest proven oil reserves in South America after Venezuela, Brazil, Ecuador and Argentina, but Colombia’s oil infrastructure is regularly affected by attacks from rebel groups, especially the ELN.

MORE: ELN claims attack that harmed 13 civilians was targeting US security ‘bunkers’ along pipeline

Sources

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