Background on the Colombian Oil Sector and Its Current State
The Colombian hydrocarbons sector has experienced five consecutive quarters of decline. In the second quarter of 2025, it recorded a contraction of 5.7% compared to the same period in 2024.
Production Figures
- Average daily oil production between January and June 2025 was 747,000 barrels, marking a 4.3% decrease from the same period in 2024.
- Fiscally monitored gas production was 1,290 million cubic meters per day, showing an interannual drop of 11.3%.
Drilling Activity
As of July 2025, there were 112 active drills in Colombia, a 6.7% increase from July 2024. Of these, 31 were in drilling and 81 undergoing reconditioning.
Oil and Gas Prices
- Brent: The international crude oil price reference, Brent, averaged US$69 per barrel in 2025, a 3.4% decrease from the previous year. In July 2024, the decline was steeper at 19%.
- Henry Hub Spot: The international gas price reference, Henry Hub Spot, was US$3.4 per 1,000 cubic feet in July 2025, a decrease from the US$4.3 to US$4.4 range in the first quarter.
Challenges Facing the Colombian Oil Sector
The Colombian Association of Petroleum and Natural Gas (ACP) has previously warned about the weakening hydrocarbon production over recent years. Key factors contributing to this decline include:
- Natural depletion of mature fields, as the primary sources of exploitation are in advanced stages of extraction.
- High tax burden, regulatory issues, public order problems, and delays in environmental permits.
The ACP president emphasized the need for new incentives for hydrocarbon exploration and production, attracting and retaining foreign investment in exploration and development projects, expediting necessary license and permit approvals, and ensuring suitable operational conditions in regions.
Government Response
The Ministry of Mines and Energy acknowledges the situation and states that they monitor 368 gas-producing fields. They also mention progress in modernizing regulations to encourage hydrocarbon exploration and ensure a just energy transition.
Key Questions and Answers
- What is the current state of the Colombian oil sector? The Colombian hydrocarbons sector has experienced five consecutive quarters of decline, with oil production averaging 747,000 barrels daily and gas production at 1,290 million cubic meters per day.
- What factors are contributing to the decline in production? Natural depletion of mature fields, high tax burden, regulatory issues, public order problems, and delays in environmental permits are key factors.
- What measures has the government taken in response? The Ministry of Mines and Energy monitors gas-producing fields and is working on modernizing regulations to encourage hydrocarbon exploration.
