Oil and gas will persist under an energy transition scenario in Colombia

The Ministry of Mines and Energy revealed that, as of December 2022, proven crude oil reserves reached 2,074 million barrels. The portfolio estimates that there is a relationship between proven reserves and production of 7.5 years. As for gas, proven reserves in 2022 closed at 2.82 cubic terapies (Tpc): the country has reserves of 7.2 years.

It is expected that by 2050, under the energy transition scenario, hydrocarbons will continue to have a majority share of more than 50%, a relevant issue for oil and gas unions and experts.

Against this backdrop, the hydrocarbon sector has outlined several challenges for the sector. The Colombian Oil and Gas Association (ACP) assured that the main objective is to guarantee energy self-sufficiency "without the signing of new contracts and the uncertainty around the Transaction Roadmap defined by the National Government."

They explained that one of the challenges will be to guarantee the operation of the fields, which is affected by insecurity, public order and growing social conflict.

Julio César Vera, president of the Xua Energy Foundation, said that “the most important thing is the rules of the game because they have been changed and today the sector has a lot of concern. Without stability, there is less drilling, investment, royalties and employment.”

A second challenge for the sector highlighted by the ACP is strengthening the relationship with communities, in addition to improving the perception of the industry and its advantages.

“Increasingly, communities have better information and higher expectations about the benefits generated by the energy and hydrocarbon sector,” said Vera. The sector has the additional challenge of making communities aware of the real expectations of employment and investment. “There has to be information and transparency to ensure that the community gains benefits from the activity,” added the expert.

The ACP believes that the country needs a productive transition in conjunction with energy. The main reason is that hydrocarbons represent more than 50% of GDP with operations in 19 departments. “They are fundamental for the energy security of all Colombians in the short and long term.”