<article><p class="lead">Colombia's State Council upheld a temporary ban on hydraulic fracturing that proponents argue would revitalize the country's stagnant hydrocarbon reserves. </p><p>The highly anticipated ruling today marked a significant setback for the government of President Ivan Duque and the oil and gas sector, which had lobbied hard for authorization to set up unconventional pilot projects.</p><p>The government wants to replicate the success of the US unconventional industry, and more recently of Argentina, where rising shale oil and natural gas flows are reviving exports.</p><p>Environmentalists grouped in an anti-fracking alliance celebrated today's decision after a fierce lobbying campaign in which they argued that the practice posed a threat to the country's water supply and public health.</p><p>The oil industry pledged to keep up the fight. "This is bad news for the country," said Julio Cesar Vera, head of Bogota-based consultancy Valjer Energy and former president of oil engineers' association Acipet.. "The battle was lost but the struggle continues…the debate and analysis will go on, for the good of the country."</p><p>Among the most to lose if the suspension is not lifted is state-controlled Ecopetrol, whose chief executive Felipe Bayon early today warned that the country will eventually need to import oil and gas unless the industry is allow to pursue unconventional drilling.</p><p>"This is not about doing pilot projects quickly, but doing them well," Bayon said before the decision. "The country has a lot of potential," he said, adding that the company will continue to prepare for a future ruling that would eventually permit the practice.</p><p>Colombia´s unconventional potential lies in the Middle Magdalena Valley basin in the central region, which holds 4bn-7bn bl of oil equivalent (boe) resources, and 4 trillion to 13 trillion cf of natural gas, according to Ecopetrol's estimates.</p><p>In Rancheria in the northern department of Cesar, Ecopetrol sees the potential for 10 Tcf of unconventional gas, with another 0.3-0.5 Tcf in naturally fractured reservoirs. In the restive Catatumbo region of Norte de Santander department, Ecopetrol's estimates range from 0.2 Tcf to 1.4 Tcf.</p><p>Nationwide, proven crude reserves increased by 9.9pc to 1.96bn bl in 2018 from 1.78bn bl in end-2017, extending the life of the reserves to 6.2 years from a previous 5.7.</p><p>In contrast, proven gas reserves slipped by 2.9pc to 3.78 Tcf, equivalent to 9.8 years. At the end of 2017, gas reserves totaled 3.89 Tcf, or 11.7 years of supply.</p><p>Colombia currently produces around 890,000 b/d of crude and just over 1bn cf/d of gas.</p><p>The executive president of Colombia's oil services chamber Campetrol German Espinosa said after the ruling: "We are convinced that we have to keep on working together as an industry, showing that we can do things well, generating more instruction and building public trust."</p></article>
