Colombia oil unrest grows (Ecopetrol) (plus Hugo Chavez and Kim Kardashian)

Since nobody ever reads the Colombia stories, I thought I’d throw in a little brain candy. Platts says:

Blaming labor unrest and community demonstrations directed at its client Ecopetrol, oil field services company Estrella International Energy Services said it has closed down all rigs and makeover platforms in the Barrancabermeja area of central Colombia…

Barrancabermeja … is also situated in the country’s Middle Magdelena oil exploration region…..

…26 Ecopetrol workers in Barrancabermeja were injured in clashes with police in early November….

…some communities near drilling operations have blockaded roads in various parts of Colombia in recent months to protest alleged environmental damage….

Plus much more, go read Chris Kraul’s article.

Colombia may be entering the next stage of the resource cycle. It’s always like this — nationalize (like Hugo Chavez), and over time the industry loses investment and skilled workers, which then causes a push for privatization, and finally things are at least partly privatized, and business picks up, but then people see injustice and pollution, and demand more resource nationalism, and — oh, we already talked about the next step.

I don’t know, but I suspect that if the government keeps bashing heads, it’s just a matter of time before the extreme resource nationalism comes back and new hassles pop up for the private companies. You might also argue that if they don’t bash heads, the country will turn into Argentina. Maybe they should get off the oil kick and try and sell reality TV stars. Like Kim Kardashian. Holy cow, I managed to get her into this post after all.

2 thoughts on “Colombia oil unrest grows (Ecopetrol) (plus Hugo Chavez and Kim Kardashian)

  1. westslope

    setty: Do you have any independent confirmation that police attacked non-violent Ecopetrol workers?

    As for your “resource cycle”, please expand and furnish other examples, because I am not familiar that version. What I do observe are countries that adjust fiscal arrangements following large swings in commodity prices.

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