Colombia’s President Gustavo Petro has ordered Ecopetrol to cancel its oil venture with Occidental Petroleum due to environmental concerns over fracking. This joint venture was expected to generate significant oil production, but Petro advocates for investment in clean energy instead.
Colombian President Gustavo Petro has directed state oil company Ecopetrol to terminate its joint venture with the U.S.-owned Occidental Petroleum, which was set to generate approximately 90,000 barrels of oil daily. This decision stems from Petro’s environmental concerns surrounding the use of fracking in oil extraction, a method criticized for its ecological impact. He stressed the importance of investing in clean energy instead.
The order to cancel the venture impacts Ecopetrol’s operations in the Permian basin, a significant oil production area located in Texas and New Mexico. Ecopetrol had planned to invest over $880 million in developing 91 oil wells in this region, which accounted for about 12% of its total production last year. Despite being a government-controlled entity, Ecopetrol is also publicly traded on the New York Stock Exchange.
President Petro’s directive emphasizes Colombia’s commitment to environmental protection over oil production through fracking, which he refers to as harmful to nature and humanity. While Ecopetrol’s shares initially rose following an announcement about its deal with Occidental, they fell after the cancellation order. The move signals a shift in Colombia’s stance on international fracking projects.
Original Source: apnews.com
