Home' Trinidad and Tobago Guardian : September 18th 2014 Contents BG8 ENERGY
BUSINESS GUARDIAN www.guardian.co.tt SEPTEMBER 2014 • WEEK THREE
Colombia will have LNG import
capacity starting in 2016, adding to an
export plant being developed by Pacific
Rubiales and due online next year.
"We re opening up our borders to a
more interconnected market," says Boris
Villa Gallo, gas manager at Colombian
state oil company Ecopetrol.
The US$400 million import plant
will have 348Mf3/d (9.85Mm3/d) capac-
ity, and a 170,000m3 storage facility.
It will be used during dry years for
"The facility will be important every
four or five years when rains are scarce,"
Villa Gallo said during the second
BNamericas LatAm Oil and Gas Sum-
mit in Houston, Texas.
Colombia expects to receive gas
imports from Venezuela starting in
2016. Today, Colombia sends about
200Mf3/d to Venezuela.
"Natural gas is growing in importance
in Colombia and now represents 25 per
cent of the energy mix compared to 21
per cent in 2005," he said.
The reserve-to-production ratio is
down to 15 years, from 35 years in 2001.
"But we see this as an opportunity to
increase reserves or bring in gas."
Colombia has reserves of 6.4Tf3,
5.5Tf3 of which are proven.
"Next to Mexico, this is very small,
but this is the challenge we have," he
Ecopetrol provides 50 per cent of
supply, with Chevron the next largest
gas producer with 18 per cent of supply.
New players like Hocol and Repsol are
expected to produce significant amounts
in the country, according to Gallo.
(Business News Americas)
If the US ban on oil exports is
lifted, the only losers would
be refiners that are now ben-
efiting from crude prices
cheaper than the global bench-
mark, said Larry Summers,
President Barack Obama s for-
mer economic adviser.
In an unconditional endorsement on
September 9 of ending the decades-
long export ban, Summers said few
public policy changes would hold such
Allowing more exports would lower
gasoline prices, according to an analysis
by the Brookings Institution, a Wash-
ington-based research group that ana-
lyzes national public policy. Summers,
a former US Treasury secretary and
now president emeritus of Harvard
University, agreed drivers would pay
less at the pump, and he said billions
of dollars of additional investment
would be added to the economy if the
export ban ended.
"I don t really understand who the
losers are who are very important,"
Summers said at a Brookings event in
His remarks and the report from
Brookings add support for exports
beyond the oil industry lobbyists who ve
argued removing the ban is the best
way to ensure the US energy renaissance
continues. That probably won t change
the political dynamics immediately, said
Jeff Navin, a former deputy chief of
staff at the US Energy Department.
"The general public, and therefore a
good number of elected officials, are
skeptical in terms of what lifting the
ban will mean for gasoline prices and
the economy," said Navin, who is co-
founder of Boundary Stone Partners,
a Washington-based consultancy. "If
you re going to see any real movement
in terms of lifting the ban, these basic
questions about energy prices and eco-
nomic impact have to be addressed."
While some members of Congress
support allowing overseas sales, includ-
ing Senator Lisa Murkowski, an Alaska
Republican, legislation to overturn the
ban hasn t advanced. Others, such as
Senator Ed Markey, a Massachusetts
Democrat, have said more exports could
raise gas prices at home and keep the
US overly dependent on foreign oil.
Summers said the law gives Obama
the authority to bypass Congress and
end the restriction himself if he judged
doing so to be in the nation s interest.
He declined to predict whether Obama
Former Obama aide Summers
calls for end of oil export ban
Ecopetrol: LNG import
project ready 2016
would lift the ban, which was put
in place by Congress in 1975 in
response to the Arab oil embargo
two years before.
For four decades, the crude
export ban was of little conse-
quence. Domestic production was
falling as producers like Irving,
Texas-based Exxon Mobil Corp
looked overseas for easier-to-reach
The advent of horizontal drilling
and hydraulic fracturing, or frack-
ing, in which drillers shoot water,
sand and chemicals underground
to break up rock and free trapped
oil and gas, reversed the trend.
Production is now at its highest
point since 1987, though imports
still account for about a third of
US daily consumption.
The US energy renaissance has
prompted companies awash with
crude to seek new markets. Sup-
porters say without them, drilling
Brookings said in its report that
oil production in the Gulf Coast
alone could increase as much as
1.5 million barrels a day if exports
were allowed. The added oil to the
global market could reduce gasoline
prices 7 cents to 12 cents a gallon,
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