PUBLICATION

Oil and Gas Investor

AUTHORS

Clotilde Bonetto Gandolfi, Timothy Lawrence

Colombia Oil & Gas 2009 OGI Release

May 04, 2009

Since coming to power on a foreign-investment-friendly ticket, the Colombian government has attracted significant foreign interest due to its friendly fiscal climate, investor confidence and improved security. The oil and gas sector has been the major beneficiary. In comparison with its close neighbors, which seem determined to make foreign investment as difficult as possible, Colombia is an oil and gas investor’s heaven. Companies with operations based out of Venezuela and Ecuador are refocusing their budgets and corporate strategy on Colombia.

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It is said that mining is a patient industry. Current demand projections are not. Demand for minerals deemed ‘critical’ is set to increase almost fourfold by 2030, according to the UN. Demand for nickel, cobalt and lithium is predicted to double, triple and rise ten-fold, respectively, between 2022 and 2050. The world will need to mine more copper between 2018 and 2050 than it has mined throughout history. 2050 is also the deadline to curb emissions before reaching a point of ‘no return.’ The pace of mineral demand and the consequences of not meeting it force the industry to act fast and take more risks. Mining cannot afford to be a patient industry anymore. The scramble for supply drives miners back to geological credentials, and therefore to places like the African Central Copperbelt.

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