The presence of the Colombian State in a centralized way, has been absent in several events. This absence has increased especially given the complex situation that the oil industry is going through in the last decade, regarding the oil industry and the communities in the different areas of geographic influence in the national territory.
Not to mention, in terms of oil exploration, the most complex activity in the process. For the same business meetings, that result in the designation of blocks to Multinational and National Oil Operators, in diverse geographic areas, the State does NOT develop, in early or late stages, programs or plans of reconciliation, education and training with the communities. These, so that future explorationists and investors find the ideal scenario, when assisting commitments that result from subscribed contracts with the energy industry and that arrive to their respective block and geographic area to start and develop, with millionaire investments of venture capital, the previously agreed phases of the project.
It is then unfair to say that “the Oil Operators have spoilt the communities”. What has been going on is that once the explorationists and the investor take over their respective Block, there are significant surprises, and given the circumstances, being a visitor and not a local, they(the explorationists and the investor) seem to become representatives of the State and sometimes stuck, with no way out, they don´t have any option, if they want to make their project come true, other than supporting the intentions of one of the communities, with extremely dissatisfied basic needs, even though many would say that these are sane aspirations but in the wrong path and with the wrong leadership.
Hence, the oil projects start at considerably different prices from the ones estimated in their investment plans and in their economic analysis.
Today, the worldwide phenomenon of the international prices of the crude oil, can´t be any more confusing and it has shown statistical numbers of exploratory costs and production costs in Colombia (including social costs) that are a predicament to the economy´s sustainability of the oil business, except if the international prices of oil are set in a sustainable way above a minimum rate of 60-70 USD/barrel. These rates are not certainly achievable in the mid-term which could encourage the exploration activity, having an impact on the exploitation activity in its production phase.
The economy of the country does not find a way out today and is carrying out budget cuts in the national budget and diligently looking for the imposition of higher taxes to replace the oil incomes of the nation.
Is it that such great impact does not require that the Colombian State takes responsibility and becomes the leader of their main business, the oil, the base of the economy, so that it (the State) starts working for the national concertation with the Colombian Communities, as a State Policy, to stop the oil industry from dying in the historical and real scenario of today´s prices?
The Colombian State can´t be indifferent towards social management, watching how venture capital and work capital investors in the oil industry opt to invest in other countries with better opportunities and less trouble.
It is the moment of the ugly truth; “either we leave the oil industry alone in this tortuous path, which would lead us in the short term to give up on the business” or “the State takes on a serious commitment of preparing the path to make it possible”.
The Colombian State has power through its institutions!!! Together with the government, the communities and the industry it is possible to move forward.
ECOP S.A.
May 26 de 2016