‘Entre la espada y la pared’

Oil: the lifeblood of industrialized nations effectively underpins the modern world. To drain a
country of its economic prospects by hiking gas prices, limiting choices, and providing
substandard products; suffocating and depriving the people of a dignified standard of living is the
ultimate iniquitous move played; pushing us pawns — as the Colombian saying goes, 'Entre la
espada y la pared' — between the sword and the wall. The health of our economy is directly
proportional to the health of the oil and gas industry. With our indisputable dependence on oil to
ignite the engine of modern civilization, the established monopoly over its production, pricing,
and distribution affects trade detrimentally; from every step of goods production, every industry
of various sectors to every transport service, metaphorically and literally oil fuels it.

Nations are pinned by the sword of monopolistic power that now erect walls to stifle competition
and innovation, particularly for new entrants. These companies continue to lobby against policies
that urge for competition and transparency, paving the path for manipulation and unfair practices.
The lack of standardized monitoring mechanisms results in political instability, with nations
grappling to maintain a stable oil production as seen with Venezuela’s economic crisis.

The move gains the adjective ‘iniquitous’ due to its capacity to target both of geo-politics
dynamics and environmental stability alike. Oil is weaponized as a political tool during the 1973
Arab Oil Embargo and the 2014 Russian-Ukrainian Conflict both of which triggered global
energy crises. Embargoes are government-imposed restriction on trade with a specific country or
region which can be taken advantage of creating geopolitical tensions which complicating
cooperation on energy issues. Over the past decade, fossil fuel companies have received 300
times more funding for fossil fuel projects than for alternative energy projects. This highlights
the industry’s vested interest in sustaining the status quo, posing obstacles to a successful
transition to renewable energy.

Efforts to break down these walls have been taken by the UN and Colombian government. A
notable initiative is the Extractive Industries Transparency Initiative (EITI) which has reduced
collusion, price-fixing while promoting just trade practices by encouraging companies to disclose
information about revenues and payments. Others include the Paris Agreement on Climate
Change (2015) and UN Conference on Trade and Development (UNCTAD) that aim to foster
competition policies in developing countries.

Upon closer analysis, we find ourselves taking one step forward and two steps backward, pinning
us to the sword once again. Despite, many Security Council Resolutions on specific embargoes
such as the Iran sanctions and strives to regulate oil prices using a global body, they’ve been
ineffective. The primary reason is the challenge of reaching consensus on a universally agreed-
upon price control system with producer and consumer nations have conflicting interests.
Enforcing such a system would demand extensive international cooperation and stimulate to
black market activity.
The oligopoly dynamics within Colombia’s oil sector is fundamental. Generating 865 thousand
barrels per day (KBPD), the sector accounts for nearly 5% of the country's total GDP and
commands a total of 55.4 percent of total exports being the main contributor to the state finances.
As the primary financial backbone, it channeled 34%, or $18 billion, of Colombia’s legitimate
export in 2022 income marking it as a cornerstone of the nation's economic landscape.

Amendments in the oil policy made in 2003 amplified oil and gas exploration, production, and
reserves. The policy called for Ecopetrol assuming the role of an operator and the newly
established National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos, ANH) became
a resource administrator setting the stage for a new era of energy prosperity.

ANH’s initiation awoke a quetzal-like resurgence of Colombia into the oil sector, breathing new
life to the Hydrocarbons Law (Law 617 of 2000). This catalyzed a chain reaction of various
innovative proposals, such as implementing Blockchain technology to guarantee a transparent
and secure process that can be used in the different stages of the Round.

The EITI platform has been well suited to Colombia by supporting the government’s anti-
corruption efforts as well as by contributing to the development of the Economic Growth law,
which introduced regulations related to beneficial ownership disclosure in the extractive sector.
Additionally, the EITI project 'Engaging communities in a just transition' has been effectively
embraced by Colombia. In 2019, EITI Colombia and GIZ prepared a practical guide and an
explanatory video to raise awareness on the 14 different types of environmental payments that
extractives companies must comply with.
Oil production in Colombia is expected to decline by an average of 5.6% in the next three years,
its limited reserves will expire in less than 10 years,

El Mohán, a mythical creature from Colombian folklore often depicted as a protector but
vengeful when disturbed or disrespected. We strongly relate such a mythical creature with
nature, the delicate balance shan’t be exploited. To make up for past actions against El Mohán,
Colombia has started a chapter towards greener energy burying fossil fuels rather than burning
them.

In 2021, Colombia’s government had announced that it will not approve any new oil and gas
exploration projects as it seeks to shift away from fossil fuels and toward a new sustainable
economy. (“Colombia announces halt on fossil fuel exploration for a greener ...”) Given the
global energy crises and the climate emergency, Colombia's ambitious plans make it a global
leader in energy transition. It has become the country with the lowest fossil CO₂ emissions per
capita in Latin America and the Caribbean.

Colombian government has joined the “Beyond Oil and Gas Alliance” (BOGA), an alliance of
governments and stakeholders working together to facilitate the managed phase-out of oil and
gas production. to transform the country into a “Global Power of Life.”
Additionally, Colombia has participated in initiatives like the Global Gas Flaring Reduction
Partnership (GGFR) contributing to global efforts to mitigate greenhouse gas emissions and
promote sustainable energy practices in the petroleum industry as well as the International
Renewable Energy Agency (IRENA) strengthening their efforts towards diversifying their
energy mix.

Given the problem seeks a multifaceted approach, Colombia urges for resolutions guaranteeing
economic development, energy security, regional stability including addressing geopolitical
tensions with a focus on fostering a more competitive, transparent, and sustainable petroleum
market that contributes to global peace and prosperity. Colombia wouldn’t want to threaten
national sovereignty of any country, completely ban embargoes recognizing the potential value
of this tool in specific situations or impose punitive measures on petroleum-producing countries
but rather prefer diplomatic engagement involving strengthening of communication and
transparency channels, promoting dialogue among stakeholders, and supporting conflict
resolution mechanisms.

Colombia advocates for implementation of measures from encouraging market liberalization, to

fostering transparent and fair market practices to increase competition to reduce the dominance
of oligopolistic structures.

Colombia also highlights the need to balance economic interests with environmental
sustainability and social development. Proposing the idea to create a standardized international
carbon pricing mechanism and global energy labeling system which would incentivize polluters
and the revenue generated could be directed towards funding the transition to renewable energy.

Colombia strongly supports initiatives such as the Extractive Industries Transparency Initiative
(EITI) that promote greater disclosure of information related to oil production, revenues, and
contracts. Even wanting to implement transparency in other aspects of Oil trade to promote
transparency and responsible practices throughout the global oil and gas supply chain inspired by
the success of the Kimberley Process Certification Scheme (KPCS) in curbing conflict
diamonds.

Colombia underscores the importance of international cooperation and collaboration. We believe

in the promotion of international collaboration on these projects by fostering scientist and
engineer exchange programs between nations with established renewable energy expertise and
those seeking to develop their capabilities. This collaborative approach can accelerate
breakthroughs and knowledge sharing.