Vesna Marinkovic U.
ISSUE 125
Franklin Molina Ortiz is from Santa Cruz and is a senior economist, specializing in energy development. He studied Economics at the Gabriel René Moreno Autonomous University (UAGRM) in Santa Cruz, completed postgraduate studies in Bolivia and Chile related to public management, administration, financial management, and business management. He served as Deputy Minister of Energy Development and was appointed Minister of Hydrocarbons and Energy on November 9, 2020.
1What should have been done during Evo Morales’ government to avoid the current crisis situation in the hydrocarbons sector?
There should have been greater emphasis on developing energy transition policies and alternative, green, renewable, and sustainable energy. The worst omission was the lack of hydrocarbon exploration since 2015, despite the observed downward trend in production at that time.
There were delays and poor planning in implementing the lithium project. Additionally, promoting and incentivizing the use of electric vehicles would have significantly contributed to initiating the shift in the energy matrix in the transportation sector toward such energy sources.
We believe an update of the sector’s regulations was needed to make YPFB’s investment scenario more competitive and to reconsider YPFB’s role as the project owner. The Hydrocarbons Law became obsolete, and working on its update is essential.
2Would it have been politically correct to say in 2014 that we were not in a sea of gas and that the sector was beginning to have problems?
The statements made by the former Minister of Hydrocarbons were not politically correct. It would have been more prudent to wait for the corresponding production tests before making any announcements.
“Greater impetus should have been given to the development of energy transition policies and the advancement of alternative energies.”
3Today, should it be said that there is no gas to support the industrialization of this raw material?
Affirming that we are running out of gas is an incorrect assessment. While there is a natural decline in gas production that started in 2015 and 2016, this situation is being reversed with the drilling of new exploratory wells to discover new hydrocarbon reservoirs, aiming to maintain and increase hydrocarbon reserves. We are working on it.
The Hydrocarbons Law establishes and guarantees the supply of hydrocarbons to the domestic market, including industrialization plants, evidenced by the production of urea at the Marcelo Quiroga Santa Cruz Ammonium and Urea Plant. Excess production is then exported to Argentina and Brazil.
4For now, what is your take on diesel supply in the country?
Diesel supply is guaranteed nationwide. What currently exists is an over-demand generated by unfounded speculations about a supposed shortage of this product, aiming to create panic in society, even with political undertones to damage our government’s image.
As a national government, we are firmly committed to maintaining fuel subsidies, but we have detected black market networks and smuggling that are speculating with the fuel of Bolivians. Therefore, we have promoted a national policy to control and combat smuggling and fuel diversion, aiming to generate savings for the state in fuel subsidies of approximately $1 billion annually.
Consequently, we share what our president stated, understanding that removing fuel subsidies would disproportionately affect the poorest due to the increase in fuel prices. That’s why we, as a national government, are making the effort to maintain these prices and will continue to do so as long as we have the economic capacity.
5Considering that exploration times are long, and obtaining investments in a world pressuring for the end of fossil fuels is complex, does Bolivia still have a chance to resume its profile as a gas-exporting country?
Currently, Bolivia is a natural gas exporter with significant hydrocarbon potential. To the extent that investments in hydrocarbon exploration can be realized, Bolivia will improve its potential as a hydrocarbon-exporting country. In this context, YPFB is implementing new exploration and well exploitation projects to increase gas and oil production, ensuring production and guaranteeing gas supply for the domestic market, industrialization, and export.
6Are there possibilities of proposing a modification to the current Hydrocarbons Law?
Yes, there are possibilities.
7How close are we to being able to generate nuclear energy in the country, mainly due to the good prospects for Rare Earths in Bolivia?
Regarding the energy applications of nuclear technology, such as the generation of electrical energy through nuclear power reactors, it is not considered in energy planning. Within the framework of energy transition, we are focused on the accelerated incorporation of renewable energies such as solar, wind, and hydroelectric.
8Could nuclear energy be a palliative for the situation in the hydrocarbons sector?
As mentioned earlier, this possibility is not included in the sectoral energy planning.
9Are we ending 2023 optimistically?
Certainly, we continue to advance projects and policies for the benefit of the population. In hydrocarbons, it is important to highlight the progress of exploration projects, biodiesel and renewable diesel plants (HVO). Mentioning the commissioning of the Industrial Plant for Granulated Fertilizers in Cochabamba and lithium carbonate, we made significant progress in the implementation of renewable energies and work towards changing the energy matrix.
“…there were delays and poor planning in the implementation of the lithium project.”
