Colombia is looking to natural gas and fracking as a means to increase its energy reserves and preserve the dominance of its hydrocarbon sector in the economy.
Colombia’s oil industry has come a long way very fast – since 2007, the country has nearly doubled its oil production to become Latin America’s fourth largest producer.
Colombia Oil Production
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But that story seems to be coming to an end. If production stays roughly around its current rate at about 1 million barrels per day, Colombia is set to run out of oil reserves in little over six years.
That’s a huge problem – Oil sector proceeds directly put $16 billion into government coffers in 2013, an amount equal to 31% of total government revenue for the coming year.
State Income from Oil
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Searching for answers, the industry and government have both been pursuing natural gas reserves and fracking as a means to sustain energy production and the exports, taxes, international exchange and foreign investment that it brings.
According to a recent report by the Colombian Petroleum Association, the country could triple its energy reserves, adding a total of 3 billion barrels to its supply, through tapping into its natural gas potential.
In Colombia’s Ronda 2014, the government offered 19 sites for natural gas exploration and production to a variety of energy companies. Shell, Ecopetrol, Exxon Mobil and Nexen Petroleum are a few who have purchased the rights to develop these sights.
Sources
- Colombia podría triplicar sus reservas de petróleo y gas con fracking: ACP (El Pais)
- Informe Estadístico Petrolero (ACP)
- BP Statistical Review of World Energy June 2014 (BP)
The post Colombia looks to triple energy reserves with fracking industry appeared first on Colombia News | Colombia Reports.
