The Oil & Gas Year Colombia 2016
Though Colombia is South America’s third-largest oil producer and fourth-largest economy, the country’s oil and gas industry continues to struggle under the weight of several key pressures including low oil prices, conflict with rebel groups, a lack of experience and technology needed to extract its heavy oil and rapidly shrinking hydrocarbons reserves. Despite the obstacles casting shadows over the domestic economy and energy industry, there remains hope in the increasingly larger steps Colombia has made towards progress.
In 2016, President Juan Manuel Santos is closer to signing a peace agreement with the Revolutionary Armed Forces of Colombia, something that will reinstill a sense of security in both Colombian society and investors in the domestic oil industry.In an effort to pull through a difficult period, many domestic firms have embarked on cost-cutting measures. Mergers and acquisitions are making companies leaner and more efficient. These pressures will likely lead to better operational strategies and a push for the development and use of advanced technologies in the oilfield services sector to boost exploration and production campaigns.
Though Colombia’s crude output doubled between 2007 and 2015, exploration programmes and discoveries have not been keeping pace. The National Hydrocarbons Agency estimates that at current production levels, Colombia could exhaust its oil known oil reserves in 6.4 years and its natural gas reserves in 13.7 years. However, two large offshore discoveries made recently offer relief to the ailing industry. The country is now pinning its hopes on potential offshore deposits and shale reserves.
The Oil & Gas Year Colombia 2016 features interviews with President Juan Manuel Santos, former Ministry of Energy and Mines Tomás González Estrada and former president of the National Hydrocarbons Agency Mauricio de la Mora, as well as numerous other public and private sector leaders, gathering their opinions and observations of market conditions.