Key Developments in Colombia’s Energy Sector
The Colombian Chamber of Petroleum, Gas, and Energy (Campetrol) recently presented the petroleum balance for the second half of 2024, revealing a significant shift in Colombia’s hydrocarbon production landscape.
Importance of the Cámara Colombiana de Petróleo, Gas y Energía (Campetrol)
Campetrol is a prominent organization representing the Colombian petroleum, gas, and energy industry. It plays a crucial role in monitoring and reporting on the sector’s performance, providing valuable insights into production trends, market dynamics, and policy impacts.
Gas Import Growth and Production Decline
The presented data shows a 9.5% decrease in Colombia’s gas production from 2023 levels, while gas imports have surged by 166.4% over the past year.
- In 2023, Colombia produced an average of 1,058.7 million standard cubic feet per day (Mscfd) of natural gas.
- By 2024, production fell to 958.8 Mscfd.
- Gas imports increased from 80.3 Mscfd in 2023 to 214.1 Mscfd in 2024, primarily sourced from Trinidad and Tobago and the United States.
Import Trends and Market Dynamics
According to the Natural Gas Market Manager, Colombia began importing gas in January 2022, starting with 0.7 Mscfd and gradually increasing to 3.9 Mscfd by June of the same year.
- No gas imports were recorded from April 2023 to the present.
- The steady rise in gas imports reflects a growing reliance on external sources to meet domestic demand.
Impact on Consumers and Future Outlook
Nelson Castañeda, Campetrol’s CEO, highlighted the potential consequences of rising gas prices on low-income households.
Castañeda: “We believe that the country will have to rely on gas imports for the next five years. The price increase will disproportionately affect low-income households.”
Petroleum Production Trends
Castañeda also discussed the state of petroleum production in Colombia.
- The average number of drilling rigs in operation during 2024 was 107, a decrease of 15.7% (or 20 rigs) compared to the previous year.
- In 2024, only 477 development wells were drilled, a 20.5% decrease from the 600 wells drilled in 2023.
Campetrol predicts that hydrocarbon production will peak in 2029 at approximately 797,700 barrels per day.
Strategies to Boost Production
To enhance hydrocarbon production, Campetrol’s president outlined several strategies:
- Adjusting contractual conditions to encourage incremental production
- Reviewing suspended contracts and extending the validity of active contracts
- Prioritizing offshore projects through a Conpes decree
- Improving recovery factors in key basins
Castañeda forecasted that petroleum production in 2025 will remain above 750,000 barrels per day but cautioned that the potential output could reach up to 800,000 barrels per day.
Key Questions and Answers
- Q: What changes have occurred in Colombia’s hydrocarbon production?
- A: Colombia’s natural gas production has fallen by 9.5% from 2023 levels, while gas imports have surged by 166.4%.
- Q: Which countries are the primary sources of Colombia’s gas imports?
- A: The majority of Colombia’s gas imports come from Trinidad and Tobago and the United States.
- Q: How have gas import trends affected the Colombian energy market?
- A: The growing reliance on gas imports reflects a shift towards external sources to meet domestic demand.
- Q: What are the potential consequences of rising gas prices for low-income households?
- A: Nelson Castañeda, Campetrol’s CEO, stated that low-income households will be disproportionately affected by rising gas prices.
- Q: What strategies does Campetrol propose to boost hydrocarbon production in Colombia?
- A: Campetrol suggests adjusting contractual conditions, reviewing suspended contracts, prioritizing offshore projects, and improving recovery factors in key basins.
