Colombian pure fuel reserves fell to the bottom since a minimum of 2007 and oil reserves additionally dropped, placing stress on President Gustavo Petro to rethink his ban on new fossil-fuel exploration.
Pure fuel reserves dropped to the equal of seven.2 years of output on the finish of final 12 months, from 8 years in 2021, in accordance with the Nationwide Hydrocarbons Company. The Andean nation had 2.04 billion barrels of confirmed crude reserves, the equal of seven.5 years of output, down from 7.6 years of manufacturing within the earlier evaluation.
Petro’s administration has to this point refused to challenge new oil-exploration licenses, although the ministries of vitality, finance and trade in March stated the brand new reserves report could be key in figuring out coverage going forth.
In a press release following the report, Mines and Power Minister Irene Velez stated the federal government will proceed to concentrate on on the lookout for better effectivity, and make sure that offshore initiatives come to fruition.
She additionally highlighted the rise within the restoration issue, or the quantity of crude that may be extracted from a reservoir, which rose to 23% from 21%.
“This enhance exhibits that the federal government’s coverage of bettering reserves by means of effectivity” is working, Velez stated.
“Regardless of larger costs, it was not a great 12 months when it comes to reserves,” stated former Mines and Power Minister Tomas Gonzalez, who now heads Bogota-based vitality assume tank Regional Heart for Power Research. “We proceed to face the lack of self-sufficiency within the second half of the last decade.”
Nonetheless, given the significance of oil for the Colombian financial system, the federal government might not be able to fully shut the door to new drilling, in accordance with Jose German Cristancho, head analyst at Bogota-based brokerage Corredores Davivienda. Oil accounts for round 15% of presidency income and about 25% of international direct funding.
“This report will once more carry to mild the controversy on whether or not new contracts are wanted,” stated Cristancho. “For now the federal government might insist there are ample contracts however relying on how the present exploration marketing campaign goes, it might be open to new contracts down the street.”
–With help from Oscar Medina.