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Related: About this forumColombia gets crude awakening as oil price slump hits economy
Colombia gets crude awakening as oil price slump hits economy
By Helen Murphy and Nelson Bocanegra
PUERTO GAITAN, Colombia, March 10 Tue Mar 10, 2015 4:36pm GMT
(Reuters) - As fewer and fewer oil trucks roll through the streets of Puerto Gaitan, Mario Romero crunches the numbers. Unless crude prices pick up and Colombia's oil firms invest again in exploration and production, his hauling company will soon go bust. Just six months ago, Transportes Paraiso Regional had 320 drivers moving oil, machinery and personnel around Colombia's booming energy industry. Now, his 16 remaining drivers are looking for jobs.
"I told my staff we can hold out two months, and if things don't improve, I'll let them go," said Romero, 49, in Puerto Gaitan, the nearest town to oilfields operated by Pacific Rubiales and other producers.
Romero is far from alone. In a town until recently awash with cash to pave roads and host pop stars like Marc Anthony and Daddy Yankee, many businesses are now shuttered. The mayor's office says Puerto Gaitan, home to 45,000 people and set along the lazy Manacacias River in central Colombia, will see oil royalties fall by about two-thirds this year.
The entire oil industry chain - from drillers and engineers to geologists and hotels - is in trouble, threatening consumer spending, tax revenue and broader economic growth. Colombia is not a major producer - it has less than seven years of reserves - but oil is its largest export and typically accounts for about 20 percent of government revenue.
More:
http://uk.reuters.com/article/2015/03/10/colombia-economy-oil-idUKL1N0W61SK20150310?rpc=401
Marksman_91
(2,035 posts)COLGATE4
(14,732 posts)They are enjoying an amazing Real Estate boom with people from all over the world snapping up properties in Cartagena and Medellin. They have never seriously depended on petroleum.
forest444
(5,902 posts)as white gold - which thanks to our failed drug war, is now worth its weight in gold.
Not that it means much to Colombia's 5 million internally displaced refugees - the equivalent of having every last person in Texas and Louisiana on the move here in the U.S. (but worse, because in Colombia the resources available to deal with them are slim to none).
Judi Lynn
(160,587 posts)forest444
(5,902 posts)Colgate will retire down there any minute now, as soon as he's done cranking out his "you're all Chavistas" and "forget Colombia's problems, let's just trash Venezuela" straw men; and Bacchus is already packing his bags to re-emigrate, just as soon as he's done calling everyone on DU "poopy heads" or some such thing.
Don't forget to write, guys.