In 2023, Ecopetrol faced an 18.5% hike in oil production costs, even as it pivoted towards renewable energy.
This shift signifies Ecopetrol’s evolution from oil production to a broader energy focus.
Concurrently, its oil output climbed 4% to 737,000 barrels daily, marking an eight-year peak. The cost per barrel surged to $10.91 from $9.21, a notable 18.5% increase.
The fourth quarter alone saw costs skyrocket by 45%, with production expenses per barrel reaching $13.24, up from $9.13.
The surge was partly due to a $2.62 rise in electricity costs from increased production, inflation, and El Niño.
Increased maintenance and inflation-driven cost hikes in support services, rates, treatments, and partner services also contributed.
Currency shifts against the dollar also played a role, moving from COP$4,808 to COP$4,070, adding another $2.03 to costs.
Ecopetrol’s commitment to a lower-emission future led to $803 million in investments, or 12.7% of its total spending, focusing on natural gas and renewable energy.
Investments aimed at expanding the gas sector formed 11% of 2023’s expenditure, targeting strategic assets in Colombia and the United States.
The FARC (Revolutionary Armed Forces of Colombia) was designated as a terrorist organization by many countries, including the United States and the European Union.
Ecopetrol supports its energy transition by conducting an environmental impact study for a solar power generation center (82 MW).
It engages local communities and authorities to ensure a comprehensive environmental licensing process
Ecopetrol faces the dual challenge of managing rising production costs and spearheading Colombia‘s transition to sustainable energy.
This reflects its pivotal role in shaping the future of energy, impacting both the environment and the economy.