Alberto Consuegra Granger

Ecopetrol Under Petro: Key Challenges and the Damage from Government Policies For those looking to understand the challenges Ecopetrol faces under President Gustavo Petro, here are the key ways the government’s policies are hurting the company and eroding its financial strength: 1. Energy Policy and Strategic Uncertainty Petro’s administration has created significant uncertainty for Ecopetrol by pushing to halt new oil and gas exploration contracts. This policy threatens the company’s future by limiting its ability to replenish oil reserves, which are crucial for long-term sustainability. Without new exploration, Ecopetrol risks a sharp decline in production, directly undermining its core business. 2. Stock Market Value Plummeting Ecopetrol’s stock has taken a significant hit since Petro took office. The initial reaction to his policies caused a sharp sell-off, with shares dropping dramatically due to fears of reduced oil investment. Despite a slight recovery driven by high oil prices, the stock has lost substantial value, and investor confidence remains low. The uncertainty around Petro’s anti-oil stance weighs heavily on Ecopetrol’s valuation. 3. Profitability at Serious Risk Ecopetrol’s profitability is under direct threat. While transitioning to renewable energy is essential, the company’s short- and medium-term profits rely heavily on oil and gas production. If Ecopetrol is forced to cut back on hydrocarbons too quickly, it risks a sharp decline in revenue and profitability, which could destabilize its financial health. 4. Loss of Foreign Investment Petro’s energy policies have also led to a loss of foreign investor confidence in Ecopetrol. International investors are pulling back due to the government’s aggressive shift away from hydrocarbons. This impacts Ecopetrol’s ability to secure the capital it needs for large projects and expansion. Less investment means fewer resources to fund conventional and renewable energy projects, putting growth at risk. 5. Fiscal Impact on Public Finances Ecopetrol is a crucial source of revenue for Colombia’s government. Petro’s policies threaten the company’s earnings potential, which could create a fiscal shortfall. With reduced oil production and profits, the government risks losing a significant portion of its tax revenues and dividends from Ecopetrol, leading to budgetary strain that could affect social programs and public investments. #Ecopetrol #EnergyPolicy #GustavoPetro #OilCrisis #StockMarketLoss #RenewableEnergy #Colombia #InvestmentRisks #FiscalImpact

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Ecopetrol Under Petro: Key Challenges and Uncertainty For those looking to understand what’s happening with Ecopetrol under the administration of President Gustavo Petro, here are the main challenges the company is facing due to the government’s energy policies and their impact on its financial health: 1. Energy Policy and Uncertainty Petro’s push for renewable energy and the halt on new oil and gas exploration contracts has introduced significant uncertainty for Ecopetrol. Without new exploration, the company risks depleting its reserves, which threatens its future production capacity and long-term sustainability. 2. Stock Market Volatility Since Petro took office, Ecopetrol’s stock has experienced notable volatility. Initially, the market reacted negatively to the potential decrease in oil investment, causing a sharp sell-off. Although oil prices helped the stock recover somewhat, investor confidence remains fragile due to ongoing concerns about the company’s future direction. 3. Profitability at Risk While diversification into renewable energy is necessary, Ecopetrol’s short- and medium-term profitability still depends largely on oil and gas production. If the company is pushed to reduce its focus on hydrocarbons too quickly, it risks losing revenue, which could hurt its financial stability in the near term. 4. Impact on Foreign Investment The shift in Colombia’s energy policy has also impacted foreign investor sentiment. Ecopetrol risks losing access to crucial international investments needed to finance large projects and expansions, which complicates its efforts to maintain growth while transitioning to renewable energy. 5. Pressure on Public Finances Ecopetrol is a key contributor to Colombia’s public finances. Any significant drop in its profitability due to reduced oil exploration or production could affect the country’s fiscal outlook, reducing government revenues and potentially impacting social programs. Conclusion The challenge for Ecopetrol now is to find the balance between adapting to global energy trends and ensuring its core profitability remains intact. The outcome of this transition will be crucial not only for Ecopetrol but for Colombia’s economy as a whole. #Ecopetrol #EnergyTransition #GustavoPetro #OilAndGas #RenewableEnergy #Colombia #Investment #PublicFinances

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The oil and gas industry is on the path towards autonomous operations through connected assets, Edge and Cloud infrastructures and domain driven EdgeAI applications. The journey begins with conditional and high-level automation, where specific tasks are automated under set conditions. Ultimately, advanced AI systems can handle all operations with human roles shifting to strategic mission-critical tasks. Our client's success story in Ecuador using our Agora Edge Computing Platform and EdgeAI based applications to automate their ESP, chemical injection and water injection activities is a testament to this. Watch their journey towards intelligent and autonomous operations here: https://lnkd.in/emZxB95A #autonomousoperations #AI #edgecomputing #weareslb

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FROM HOUSTON TO #LatinAmerica, from the Energy Capital of the world! #SpanishPodcast DESDE #HOUSTON para #LatinoAmerica, desde la capital de la energia! #PodcastEnEspanol With Miguel Zabala-Bishop and GET Global Energy Transition

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The future of AI is here and the eMerge Americas with Melissa Medina provided a powerful glimpse into what's to come. Stay constantly informed and inspired as we navigate the opportunities and challenges of this rapidly changing landscape.

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The AAPG Young professionals would like to thank another sponsor! This time it’s ERCE, a global leader in energy consulting. Their sponsorship allowed the YPs to attend the AAPG Latin America & the Caribbean Leadership Summit this year. Thank you ERCE – very kind to support young professionals this way! "In a world where the only constant is change, it’s impossible to know what tomorrow will bring. The only certainty is that the challenges it presents us with will be greater and more complex than ever before. Thankfully, at ERCE, we don’t begin to solve them with a blank sheet of paper… Whether it’s energy solutions that enable greater global prosperity, or delivering a low-carbon, sustainable future -the answers are found in the ingenuity and experience of our people. Driven by boundless intellectual curiosity, our in-house team of experts embrace uncertainty and adapt to each challenge as it evolves. Which is why at ERCE, no solution is seen in isolation. Each is simply the accumulation of everything we’ve learned up until now and we’re continuing to use this expertise to shape the future." With headquarters in London, and offices in Perth and Kuala Lumpur, ERCE are able to offer wholly independent opinion and insights in: -Technical Studies -Reserves & Resources Evaluation -Commercial Analysis -Unitisation & Expert Services -Future of Energy -GHG Emissions -Decarbonisation Contact ERCE at [email protected] to find out more about how they can add technical and commercial value to your projects. Thank you very much ERCE! _________________________________ Follow our pages for free geoscience events, news & vacancies: London AAPG YP AAPG YP FRANCE American Association of Petroleum Geologists (AAPG) AAPG Europe

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Pemex’s declining production, the worst in 47 years, is clearly indicative of the failure of AMLO’s energy counter reform and the completely erratic policies against upstream private stakeholders in Mexico, the incoming administration has no alternative but to urgently demolish these policies #upstream #ruleoflaw #freetrade #gonzalezcalvillo

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Nice talk today on the Buenos Aires Global Business Center. We had the opportunity to explain what we do on Central Data Office and how we turn data into information, driving better business decision. #Exxonmobil #CDO #DataAnalytics 

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New book, "Navigating the New Era of U.S.-Mexico Trade: Infrastructure, Technology, and the Future of Cross-Border Trade," this past Monday, September 2nd. This comprehensive work explores the evolving U.S.-Mexico trade relationship, focusing on three critical aspects: Infrastructure: Examining the role of modern border facilities in facilitating cross-border trade, with a spotlight on Port Laredo. Technology: Investigating how AI, autonomous vehicles, blockchain, and the "LOGISTECHS" concept are revolutionizing logistics and supply chain management. Workforce Development: Addressing the need for an AI-centric workforce in the context of regionalization and nearshoring trends. The book also offers insights into overcoming the "digital wall" between the U.S. and Mexico, emphasizing collaboration and interoperability. It concludes with a call to action for stakeholders to invest in these critical areas to foster a more resilient and prosperous cross-border trade relationship. "Navigating the New Era of U.S.-Mexico Trade" is now available on Amazon, where it has achieved #1 rankings in New Releases for Exports & Imports Economics, Management Information Systems, and is #10 in the Transportation Industry. For those interested in North American economic integration, this book provides valuable insights into the future of U.S.-Mexico trade relations. The book includes a foreword by Ildefonso Guajardo, former Secretary of Economy of Mexico. You can purchase the book at the following link: https://a.co/d/aPrRx8F I've attached a flyer with more details about the book. Please share this announcement with others who might find it relevant to their work or studies. Thank you for your support and interest. Best, Daniel

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Within the LAC region, this regional certification is important for hydrogen and its derivatives. This is a good guide to understanding Certilac.

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𝗡𝗲𝗮𝗿-𝘁𝗲𝗿𝗺 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝘁𝗼 𝗟𝗮𝗿𝗴𝗲-𝗦𝗰𝗮𝗹𝗲 𝗗𝗲𝗽𝗹𝗼𝘆𝗺𝗲𝗻𝘁 𝗛𝘆𝗱𝗿𝗼𝗴𝗲𝗻 𝗶𝗻 𝗟𝗮𝘁𝗶𝗻 𝗔𝗺𝗲𝗿𝗶𝗰𝗮 The momentum for low-carbon hydrogen is growing in Latin America, with many countries currently developing long-term hydrogen strategies and a project pipeline of more than 25 projects, including several gigawatt-scale projects to export it beyond the region.   In this report the International Energy Agency (IEA) analyzes both the region’s potential to play a major role in the future low-carbon hydrogen landscape, and the role that low-carbon hydrogen could play in Latin America’s own clean energy transitions.   Low-carbon hydrogen deployment depends on many technologies that are still under development, and considerable cost reductions will be needed to enable it to reduce global emissions in applications that may not be suitable for director electrification.   The next decade will be crucial for the long-term promise of low carbon hydrogen in Latin America, and much can be done today to develop and demonstrate emerging technologies and prepare the ground for their future scaling up.   They conclude the report with a series of six recommendations for policy makers in Latin America to harness the potential of low-carbon hydrogen in the region.   #renewables #hydrogen #netzero #energy #transition Credits: This report was prepared by the Europe, Middle East, Africa and Latin America (EMAL) division of the Office for Global Energy Relations (GER) of the International Energy Agency.   Authors & Contributors: Mariano Berkenwald, Javier Jorquera Copier, Joerg Husar, José Miguel Bermúdez Menéndez, Mary Burce Warlick, Rebecca Gaghen, Praveen Bains, Adam Baylin-Stern, Simon Bennett, Elizabeth Connelly, Chiara Delmastro, Carlos Fernández Alvarez, Enrique Gutierrez, Peter Levi, Luca Lo Re, Hana Mandova, Jeremy Moorhouse, Toru Muta, Luiz Gustavo Silva de Oliveira, Francesco Pavan, Kristine Petrosyan, Uwe Remme, Matthew Robinson, Hugo Salamanca, Marta Silva, Pouya Taghavi-Moharamli, Jacopo Tattini, Jacob Teter, Tiffany Vass, Justin French-Brooks, Astrid Dumond, Tanya Dyhin, Julie PUECH. ------ ➡ 𝗙𝗼𝗹𝗹𝗼𝘄 | David De Sousa for content like this one 💬 𝗖𝗼𝗺𝗺𝗲𝗻𝘁 | Share Your insights, Your opinion matters 🔄 𝗥𝗲𝗽𝗼𝘀𝘁 | Help others benefit from this Content 🛎️ 𝗡𝗼𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀 | Activate to Catch all New Posts ------

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In 2021 we ensure that at 75% percentile of current figures, a significant fraction of the world's crude oil reserves could disappear over the next 15 to 20 years, causing an apocalyptic price scenario and bottleneck in the global energy balance [ https://lnkd.in/gmigy8xv ]. We estimated the net fragility on supply to reach around 33 MMBD. In addition to this, there is also expected a growth in demand of about 20 MMBD, constituting an imminent deficit in fossil energy supply of nearly 53 MMBD, with catastrophic consequences in the different world economies and energy consumption pattern. Venezuela, Iran, Iraq, UAE, Libya, Kuwait, Canada, and Saudi Arabia account for nearly 85% of global reserves, but only 26.7% of global production. Surprisingly of these 8 countries only Venezuela has real, and significant captive potential to increase production in a sustainable and economic way, both of crude oil and gas. The essence of the end of fossil energy could therefore be more motivated by the fear of a greater strategic threats heading into those countries whose reserves are about to disappear in the short term; including those who are now purely consumers, than to the very assumption of climate change.

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Ecopetrol’s decision to withdraw from the deal to acquire a 30% stake in Occidental Petroleum’s CrownRock assets highlights several important dynamics in the oil and gas sector, particularly regarding asset management, financial strategies, and market conditions. Here are some key insights from the situation: 1. Strategic Withdrawal and Market Dynamics • Ecopetrol’s Decision: The withdrawal from the CrownRock deal signifies Ecopetrol’s cautious approach amid a challenging financial landscape. The company may be reassessing its investment priorities, particularly in light of its current challenges in reserve replenishment and overall financial health. • Occidental’s Position: Occidental had anticipated using proceeds from the Ecopetrol deal to reduce its substantial debt, which stood at $18 billion at the end of Q1 2024. This withdrawal complicates Occidental’s financial strategy, potentially delaying debt reduction plans. 2. Asset Management and Divestitures • Occidental’s Asset Sales: Occidental’s ongoing strategy to sell up to $6 billion of CrownRock assets reflects a broader trend in the industry where companies are divesting non-core assets to strengthen their balance sheets. The recent report of a potential $1 billion sale of assets in the Barilla Draw region indicates Occidental’s proactive approach to managing its portfolio. • Indirect Ownership Option: The option for Ecopetrol to elect for an indirect ownership stake through the Rodeo Midland Basin Joint Venture highlights the complexities of asset transactions and the potential for alternative arrangements even when direct deals fall through. 3. Ecopetrol’s Strategic Focus • Gas Asset Acquisition: Ecopetrol’s consideration of acquiring gas assets from Canadian operator Canacol indicates a strategic pivot towards ensuring gas self-sufficiency in Colombia. This move reflects concerns about the country’s long-term energy security and the need to bolster domestic gas production. • Reserve Replenishment Challenges: The downgrade of Ecopetrol’s shares by Bank of America underscores the company’s struggles with reserve replenishment, which is critical for maintaining production levels. The current reserve replenishment ratio of 48% and a lower average reserve life of 7.8 years raise concerns about the company’s future production capabilities and overall sustainability. 4. Financial Implications and Market Sentiment • Impact on Stock Performance: Ecopetrol’s withdrawal and subsequent downgrade by Bank of America may affect investor sentiment and stock performance. The market’s reaction to these developments will be closely watched, especially as investors evaluate the company’s ability to navigate its operational challenges. • Debt Management for Occidental: Occidental’s reliance on asset sales to manage its debt load emphasizes the importance of financial discipline in the current market environment.

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As we wait for the Mexican government to unveil its much-anticipated National Energy Plan, questions arise about whether #naturalgas will get the focus it needs. Despite its significance, it remains one of the overlooked areas in the country's energy strategy. Based on current trends, combined with #Pemex's ongoing financial difficulties that may restrict capital investments, #Mexico seems on a path toward record natural gas imports, especially from the U.S., in the years ahead. With demand anticipated to increase, will the upcoming Energy Plan tackle pressing issues such as boosting local production and exploring policy options such as storage, or will these crucial aspects be sidelined once more?

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We are very pleased to announce a three-year Operations & Maintenance (O&M) agreement with Eramine Sudamérica S.A. to cover the power plant supplying electricity to the company’s lithium mine, located on the Centenario Ratones salt flat, in Salta, Argentina. The remote location of the mine does not allow connection to the grid, and the facility is reliant on the power plant to supply all its electricity. Our deep experience in O&M agreements will guarantee operational reliability, which is therefore essential to maintain production schedules. “We are providing Eramine high energy availability to ensure continuous mine production throughout the year”, comments our Energy Business Director, AMER, Region South at Wärtsilä Energy, Jorge Alcaide. The power plant is newly built and has a capacity of 28 MW. Three Wärtsilä 34SG engines will be running on natural gas to deliver 20 MW of power to the mine and one engine will be in standby mode. “We cannot operate without power, so it makes sense for us to have the O&M experts operate and maintain the plant. This ensures continuous reliability and performance of the plant, while we can focus on the business of mining lithium”, says Leonardo Guevara, Director of Supply Chain, Eramine Sudamerica. Find out more in our latest press release 👉 https://ow.ly/lwiV30sBWXN #EramineSudamerica #LithiumMining #RenewableEnergy #SustainableOperations #WärtsiläEnergy #PoweringTheFuture #OffGridSolutions #EnergyReliability #NaturalGasPower

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A good read about the growing adoption of in-situ renewable energy in Latin America's mining sector, and why it presents a unique competitive advantage. Leveraging the region’s abundant solar and wind resources, mining operations can reduce energy costs, enhance resilience, and significantly lower emissions. This shift not only aligns with global sustainability goals but also positions Latin America as a potential leader in sustainable mining practices, appealing to stakeholders seeking responsible sourcing. #MiningInnovation #SustainableMining #LatinAmerica #RenewableEnergy #Copper #Lithium #SolarEnergy #WindEnergy #MiningIndustry #CarbonFootprint #EnergyTransition

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