IAHL Corporation (CE) (IAHL) Quote

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

This was always a scam

He predicted the scarcity of gas would become "severe" by 2026, contributing to an overall energy deficit of 55%.

Data published by natural gas market administrator BMC shows that Colombia's deficit of the fossil fuel will reach 76.5BBTU/d (billion British thermal units a day) in 2025 and 190BBTU/d in 2026.

The situation has been exacerbated by an alarming decline in gas reserves, which fell to 2.37Tf3 (trillion cubic feet) at the end of 2023 from 2.82Tf3/d a year earlier.

The crisis is arguably even more acute in the electric power segment amid severe delays to renewable energy projects, transmission bottlenecks and a lack of opportunities for thermoelectric generators.

GEB) president Juan Ricardo Ortega has warned that Colombia must take urgent action to avoid imminent gas and electricity shortages.

He revealed that the company faces a gas shortfall of 5Mf3/d (million cubic feet a day) by year end amid soaring demand and rapidly diminishing supply.

"We're currently facing a situation in which we don't have the gas needed for December," Ortega said during an energy forum in Bogotá. "Without these five million cubic feet per day, operating the gas compressors will be impossible."

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.

And are any of those projects ours?

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

You've all been had

Meanwhile, Colombia's broader energy strategy is facing a dichotomy. Despite President Gustavo Petro's climate-focused agenda, which includes halting new drilling licenses, the government is pushing to increase oil production. The Energy Ministry aims to boost output to 1 million barrels per day by revitalizing underutilized exploration blocks. This effort is crucial as oil and coal account for half of Colombia's total exports.

The proposed work is part of the government’s IPAT gas transport expansion program and aims to guarantee bidirectional transport capacity from Barranquilla on the Atlantic to Ballena in La Guajira.

Promigas has a 51% stake in SPEC LNG, which operates a regasification terminal in Cartagena.

The project will allow the transport of 170Mf3/d within 36 months under a 20-year regulated income scheme.

Colombia’s efforts to bolster natural gas supply have received a boost with a pledge to advance development of a project to transport the fuel.

In a regulatory filing, gas transport and distribution company Promigas reported that its board ratified its willingness to carry out the Barranquilla-Ballena pipeline project, as announced by energy and gas regulator CREG.

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.

There is some sleight of hand deceptive behavior going on here

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

Helloooooooooo, anyone there?

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

😂

Ecopetrol S.A. EC, has commenced the drilling of the Uchuva-2 well in the Tayrona block, located offshore Colombia’s Caribbean coast.

This move is part of a broader strategy to boost Colombia's natural gas reserves and enhance the country's energy security. The Uchuva-2 appraisal well aims to confirm the size of the natural gas discovery made at the Uchuva-1 exploration well in July 2022, marking a significant milestone in Colombia's offshore energy exploration efforts.

Colombia is emerging as a green hydrogen pioneer in Latin America as it ramps up plans to produce and export the energy vector to international markets.
Efforts to accelerate growth in the nascent sector form part of a broader strategy by President Gustavo Petro to end the country's dependence on fossil fuels and promote investment in clean energy.
BNamericas provides a snapshot of the current panorama for clean hydrogen in Colombia and identifies some of the key recent developments:
CAPACITY, INVESTMENT TARGETS

Encouragingly, Colombia has shown clear signs of additional natural gas potential across both its onshore and offshore basins in recent years, signaling a promising trajectory for future exploration and development endeavors. Onshore, operating companies have continued to report gas discoveries in the Lower and Middle Magdalena Valley, Llanos, and Putumayo basins, while the increase in GOR continues to be an opportunity to improve domestic gas production in mature fields and basins.

Offshore, the ongoing discoveries made by Ecopetrol, Shell, and Petrobras (Gorgon, Glaucus, Uchuva, and Orca) continue to give indications of the potential for developing new offshore natural gas reserves in Colombia. Likewise, exploratory plans in ultra-deep waters by Oxy, Chevron, and Ecopetrol (Komodo and Cumbia) add to the high potential that the Caribbean represents for Colombia’s energy sufficiency. This potential is so clear that at the CERAWeek Energy Conference in Houston, Joelson Mendes, Petrobras’ chief exploration and production officer, told Reuters that “there could be more gas than what Colombia needs.”

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.

It's readily apparent that something catastrophic has occurred with this dog of a stock and company .The leadership has abandoned us and all their duties and obligations to communicate and be transparent with regard to status of this company and stock and the state of operations . The CEO .. some De la Nunez guy and all his cronies are gonzo . Sounds like the CEO moved on to some other company selling car door ding repair stuff. This company is out of business and just a shell of an office somewhere in rural Florida .Why ? Who knows . Legitimate multi national corporations don't conduct themselves in this fashion . Say goodbye to all, we're not gonna hear anything honest or substantial from these crooks .

The well is part of Ecopetrol’s plan to invest $760 million this year to increase natural gas production, with $350 million earmarked for offshore operations in the Caribbean Sea (OGJ Online, Apr. 25, 2024).

Petrobras is operator of the Tayrona block with 44.4% interest. Ecopetrol holds 55.6%.

Petrobras has started drilling the Uchuva-2 well in the Tayrona block offshore Colombia’s Caribbean coast. The appraisal well is expected to validate the size of the natural gas discovery made in the Uchuva-1 exploration well in July 2022, partner Ecopetrol said in a release June 21.

The well comes as part of a plan to incorporate additional gas reserves to boost gas supply to Colombia.

Given Colombia’s advantageous location with access to markets in Asia, Europe, and Central America due to its exit to the Pacific and Atlantic Oceans and its proximity to the Panama Canal, this increase in gas reserves could mean a business opportunity with the possibility of establishing LNG facilities thereby enabling direct exports to numerous markets – a longstanding objective of present regional operators. This plan to establish Colombia as a natural gas-producing province must be based on a cohesive and integrated approach among the different regional actors in the industry. This concerted effort is crucial not only for meeting the needs of both local and international consumers but also for aligning with national and global energy transition objectives. The potential is monumental, promising transformative impacts on both a national and global scale.

Colombia's economy could soon be hit by soaring energy costs as the South American country is considering LNG imports to meet rising natural gas demand while its domestic production slumps.

Large gas and energy-intensive industries could be hit hard by a further spike in their energy costs, as LNG imports could be two or three times more expensive than domestic supply, according to industry officials and analysts who spoke

So, I'll take the silence as a No Comment.

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