Colombia must attract investments in new oil and gas exploration to avert a sharp decline in future supply, the head of the country’s petroleum engineering association told BNamericas.
Figures published in May by national hydrocarbons agency ANH show the lifespan of Colombia’s crude oil reserves rose to 7.2 years in 2024, up from 7.1 years at the end of 2023.
But according to association Acipet, the increase is not enough to guarantee Colombia’s long-term energy security.
“Perhaps the greatest challenge facing Colombia today is to increase its crude oil reserves,” Acipet executive director Oscar Ferney said.
“Several indicators and studies show that we could see a significant decline in production in the future, with a steep depletion [of reserves]. No projects are in sight to reverse this trend, beyond improved recovery and efficiencies in existing fields.”
According to ANH, the number of oil and gas exploration wells drilled in 2024 fell to 27 – down 36% from the previous year. Meanwhile, there were only seven hydrocarbon discoveries last year compared to 16 in 2023.
Industry observers have blamed the extended downturn on new taxes on producers, rising violence, regulatory uncertainty and a government decision to halt new licensing rounds, among other factors.
“The addition of new reserves through exploration is important and necessary to ensure the country’s self-sufficiency, sovereignty and energy security in the coming years,” Ferney added.
Despite the precarious oil outlook, Ferney said gains were being made in efforts to increase gas reserves, which dropped for a third consecutive year in 2024 to the equivalent of 5.9 years, down from 6.1 in 2023.
He pointed to the offshore Sirius area, where state-run company Ecopetrol and partner Petrobras, Brazil’s federal oil firm, aim to start production by 2030, as one of Colombia’s most promising gas projects.
The full interview with Ferney will be published in the coming days.