WPB: Colombian President Gustavo Petro has cancelled the joint venture between the state-owned company Ecopetrol and the American company Occidental Petroleum over environmental concerns related to the hydraulic fracturing (fracking) technique.
Petro expressed his concerns on national television, stating his opposition to the recent contract extension between Ecopetrol and Occidental Petroleum because it involves fracking, which contradicts his energy policy focused on transitioning away from hydrocarbons toward alternative energy sources.
During a live-streamed cabinet meeting, the Colombian president declared: "I want this joint venture to be sold, and the money invested in clean energy. We oppose fracking because this method means the death of nature and humanity."
The request to dismantle the joint venture came just a day after Ecopetrol announced the contract extension with Occidental Petroleum. The company operates in the Permian Basin, the largest shale oil region in the U.S., where fracking is the standard extraction method for unconventional petroleum and gas reserves.
According to Reuters, the CEO of Colombia’s state petroleumcompany stated on Tuesday that, under this investment plan, Ecopetrol Permian could develop approximately 91 new production wells in the Midland and Delaware sub-basins by 2025, with an investment of over $880 million.
Based on 2024 data, Ecopetrol produces 95,200 barrels of crude oil per day in the Permian Basin, accounting for 12% of its total petroleum output. However, President Petro, a strong critic of the petroleum and gas industry and a firm supporter of the energy transition, has maintained his opposition to fracking, which is banned in Colombia.
According to OilPrice, in September last year, the Colombian government announced a $40 billion plan to move away from petroleum and gas, aiming to replace hydrocarbon revenues with alternative income sources. The funds will be allocated to nature-based climate solutions, low-carbon energy, electrification of transportation, improvements in agricultural practices, and biodiversity conservation projects.
By Bitumenmag
Petroleum, Bitumen, Project
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