Low oil reserves pose challenges for Colombia

Subject

Colombian hydrocarbons.

Significance

Colombia’s oil production has plateaued at around 870,000 barrels per day (b/d), down from just over 1 million b/d in 2013. By regional standards, production is high relative to reserves. President Ivan Duque pledged to support the sector during his 2018 election campaign; efforts to sustain and increase production look set to characterise the remainder of his term.

Impacts

• As the world moves towards a lower carbon future, Colombia may have to diversify its exports.
• Colombia’s high costs, limited scale and operating challenges could see it struggle to compete in a shriking market for investment.
• Duque’s security policies will do little to ease the physical security challenges facing oil companies operating in Colombia.