After becoming aware of the results of the presidential elections in Colombia, the actions of ecopetrol have had a difficult period in the stock market, which was also affected by weakness in the international oil price.
This Wednesday Ecopetrol fell 0.97%while the closing price of the oil company’s title was $2,152.
Meanwhile, crude oil has come under pressure in recent days, propelling its downward trajectory amid fears of a slump in demand due to the global economic slowdown.
But these are not the only evils that preoccupy Ecopetrol, there is also the denial of the incoming government for the implementation of the fracking pilot in Colombia, a project that is said to be led by the company.
Taking into account frackingCarlos Morales, professor of Finance and International Trade at the Universidad de la Salle, says that this is bad news for Ecopetrol in the short term.
“The company has tried intensively to conduct fracking in Colombia, conducting all kinds of investigations, not to mention the investments it has also sought in legal terms, they have created an environment that promotes this possibility, as there are a very important in terms of economic resourcesand by not putting it into practice, it can be problematic for the company related to its valuation in the markets,” explains Morales.
He added that the company had admitted that it is very difficult to fracking pilots in the countrybecause of the social rejection this approach has had.
“Nevertheless, the company has been delving into the energy transition for years to look for other alternatives and to be sustainable in one way or another over time,” emphasizes the expert.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
