Colombia is looking to natural gas and fracking as a means to increase its energy reserves and preserve the dominance of its hydrocarbon sector in the economy.
Colombia’s oil industry has come a long way very fast – since 2007, the country has nearly doubled its oil production to become Latin America’s fourth largest producer.
Colombia Oil Production
But that story seems to be coming to an end. If production stays roughly around its current rate at about 1 million barrels per day, Colombia is set to run out of oil reserves in little over six years.
That’s a huge problem – Oil sector proceeds directly put $16 billion into government coffers in 2013, an amount equal to 31% of total government revenue for the coming year.
State Income from Oil
Searching for answers, the industry and government have both been pursuing natural gas reserves and fracking as a means to sustain energy production and the exports, taxes, international exchange and foreign investment that it brings.
According to a recent report by the Colombian Petroleum Association, the country could triple its energy reserves, adding a total of 3 billion barrels to its supply, through tapping into its natural gas potential.
In Colombia’s Ronda 2014, the government offered 19 sites for natural gas exploration and production to a variety of energy companies. Shell, Ecopetrol, Exxon Mobil and Nexen Petroleum are a few who have purchased the rights to develop these sights.