The main Colombian guild for oil, gas, and energy service companies proposed on Tuesday several measures to mitigate the drop in exploration and production (E&P) of oil and to take on the natural gas deficit in the South American country.
Campetrol’s proposed measures include declaring offshore projects necessary for future gas supply, adjusting contracts to spur increased production, and maximizing the lifespan of projects.
Why It Matters
The guild warned that high operating costs due to blockades, extortion, and labor regulations are compromising the sector’s competitiveness and threatening the country’s self-sufficiency in the short-term.
Colombia partially relies on imported gas to fully meet internal demand.
By The Numbers
Colombian oil reserves fell 2.6% in 2023 to 2.0 billion crude barrels, 7.1 years’ worth of consumption, according to the latest data from the National Hydrocarbon Agency (ANH).
Meanwhile, gas reserves, which are key to securing President Gustavo Petro’s desired transition to renewable energy, dropped 15.8% in 2023 to 2.4 trillion cubic feet, the equivalent of 6.1 years of consumption.
Key Quotes
“This is a rigorous and evidence-based proposal geared towards preserving the technical and economic sustainability of the sector,” Nelson Castaneda, president of Campetrol, told reporters.
Context
After Petro took office in 2022, he suspended the signing of any new contracts related to hydrocarbon exploration, as his government seeks to move towards solar and wind energy and reduce the country’s dependency on fossil fuels.
The energy shift comes despite the export, tax, and royalty income that fossil fuels bring to the Colombian economy.
