Hydrocarbons are an essential sector for national development: Minister of Mines

Hydrocarbons are an essential sector for national development: Minister of Mines

  • Between 2000 and 2017, the sector has contributed $225 trillion pesos in tax income for the Nation and the regions, a similar figure to the education budget for a period of five years.
  • Over 90% of royalties received by municipalities and departments come from the hydrocarbons industry.

Ministry of Mines and Energy.  Bogota D.C. November 16th, 2018. The Minister of Mines and Energy, Maria Fernanda Suarez, underlined the significant of the hydrocarbons industry for the social and economic development of this country during the closing ceremony for the ‘1st Oil and Gas Summit, 100 Years Promoting the Development of Colombia".

Between 2000 and 2017, the sector has contributed $225 trillion pesos in tax income for the Nation and the regions, a similar figure to the education budget for a period of five years. In addition, it represents almost 50% of the total national exports and it is the largest receptor of Direct Foreign Investment, with a share of over 30%.

Minister Maria Fernanda Suarez highlighted that more than 90% of royalties come from the hydrocarbons industry and she reiterated how the 2019-2020 biannual budget is the largest since the creation of the General System of Royalties

 "Starting from the upcoming year, the regions will have almost $30 trillion pesos in royalties for investing in works that will benefit communities. The best strategy we have against corruption will be to see public works and not investigations," the Minister argued.

Likewise, she stressed the importance of the industry for territorial development and the challenge of genuinely achieving the so-called "social license" by working together with the communities and in harmony with the environment.  

At the same time, she stated that one of the sector's priorities is securing national energy self-sufficiency. "We are committed to the reactivation of the hydrocarbon sector in order to increase our oil reserves, currently equivalent to 5.7 years, and our gas reserves, currently corresponding to 11 years. This is essential for the development of Colombia," she explained.

Finally, during her presentation as part of the closing ceremony of the Summit, the Minister of Mines and Energy, Maria Fernanda Suarez, reiterated that she is working tirelessly towards the energy transition by introducing unconventional renewable energy sources "Our objective is to diversify, supplement and promote the competitiveness of our energy matrix," the Minister pointed out.

Friday, November 16, 2018, Cundinamarca, Bogotá D.C., Source: MinMinas
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