Fuel shortage due to drop in production | Escasez de carburantes por caída en la producción

Fundacion Jubileo, Brujula Digital:

Jubileo: fuel shortage has nothing to do with blockades, but with the drop in production and over time it will be greater

Jubileo: escasez de carburantes no tiene que ver con bloqueos, sino con la caída en la producción y con el tiempo será mayor

Vehicles line up to buy fuel. Photo: APG

The Jubilee Foundation reported this Wednesday that the fuel shortage in the country has nothing to do with the Evista blockade, but rather with the drop in hydrocarbon production by 50% since eight years ago, and warned that this situation will become worse as years goes by, because Bolivia imports hydrocarbon derivatives from neighboring countries.

“There are underlying structural problems that transcend far beyond any (road) blockage problem,” Energy and Hydrocarbons researcher Raúl Velásquez, from the Jubileo Foundation, assured Brújula Digital. “The structural problem lies in the fact that the production of hydrocarbons, both natural gas and liquid hydrocarbons, has been falling in the last eight years, in particular, the production of liquid hydrocarbons has fallen by 50%.”

At least in the city of La Paz and in others in the west, where there are no road blocks, long lines of vehicles are observed at service stations filling up with gasoline or diesel. Analyst Ximena Costa said this Tuesday on Panamericana that the lack of fuel is attributed by the Government to the road blockage. “It is to ignore and blame that there is none, an old strategy.”

On Monday, January 29, the executive director of the National Hydrocarbons Agency (ANH), Germán Jiménez, reported at a press conference that “every effort is made to guarantee the supply of the domestic market,” suggesting that fuel be purchased only if needs and announced that “controlled supply” is carried out.

“We have a controlled supply. We are making every effort to guarantee supply to the domestic market. It is not necessary for our population to go to our service stations when they do not need fuel,” Jiménez reported.

A decade ago, 60 million cubic meters of natural gas were produced per day, a figure that fell to around 35 million today. “This forces us to import more and more fuels. This drop in the production of liquids forces the country to import more and more fuels,” said Velásquez.

10 years ago, exports were around 6.6 billion dollars and imports did not exceed 1.15 billion dollars of gasoline and diesel. In 2023, the country exported about $3 billion of gas, but imported around $4.2 billion of gasoline and diesel.

“So, there are underlying structural problems that transcend far beyond any (road) blockage problem. In fact, if we review and remember a little what was happening in November and December (2023), there were already complaints of lines at gas stations, at service stations, both in La Paz and in Santa Cruz and Cochabamba,” said the expert in Energy and Hydrocarbons.

Velásquez anticipated that once the road blocks are lifted, the problem of fuel shortages will continue in the country. “It is a problem that is latent, I believe, beyond the specific or very specific issue of the blockades. Suddenly, if the blockages were solved, we would continue to have the same problem because we have already seen it like this in December, November, particularly last year.”

The Jubileo expert explained that, in the case of gasoline, “approximately 50% of the gasoline consumed in the domestic market is domestically produced” and “50% comes from imports.”

In the case of diesel, he continued, “the situation is a little more dramatic,” since “about 80% of national consumption comes from imports and 20% from national production.” He insisted that this situation “is the result of the drop in hydrocarbon production in the country, which has been occurring since 2015 at a general level, both in gas and liquids.”

Velásquez recalled that the drop in production dates back to 2005, followed by an increasing subsidy each year that passes. “A subsidy policy has been in force in Bolivia since August 2004, but it froze the price of a barrel of oil at 27 dollars and 11 cents. And of course, if you put yourself in the shoes of a foreign oil company, where would you prefer to invest? In Bolivia, where they are going to pay you 27 dollars and 11 cents? Or in Vaca Muerta (Argentina), where they will pay you close to 80 dollars? Or in Colombia, where they are going to pay you 78 dollars a barrel? “With certainty he is going to invest abroad.”

Given the lack of investment in new hydrocarbon deposits, the expert projected a possible trend that consists of increasing the percentage of imports, since investments in the sector require a long term to reap the investments.

“That’s how it will be, the trend is going there. The hydrocarbon sector is a long-term sector and, unfortunately, it is a condition that exists worldwide. So, what the country is reaping today, these problems that we are seeing (queues and fuel imports), are the result of the hydrocarbon policies that have been implemented in Bolivia in the last 18 years. That is the result, it is what we are seeing today and if we decide, finally, to agree as a country and achieve a new hydrocarbon policy that corrects these structural problems, it will take time,” said Velásquez.

The Energy and Hydrocarbons researcher stated that the lines at service stations will not disappear, because the country until now depends on the importation of gasoline and diesel with a decreasing national production.

“We are also going to see the changes five or ten years from now, so in the short or even medium term it is very difficult to overcome the situation that the country had previously, because due to the very characteristics of the exploratory activity it is not something that can be done overnight, but it takes time.”

On January 26, the Minister of Hydrocarbons and Energy, Franklin Molina, asked “the mobilized groups to allow the transitability” of the tanks. Of the 1,054 tankers that travel on the roads to different regions, more than a hundred were stopped at the blocking points in the Cochabamba tropics, and 260 run the risk of being in a similar situation in other conflict zones, so routes are being sought. alternate to reach your destination.

The executive director of the ANH, Germán Jiménez, said: “We have more than 100 tankers that are stranded. These hundred tankers are equivalent to more than 3.5 million liters, which compromise some regions or municipalities where these fuels have to arrive.”

BD/CT

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