Dwindling Gas Reserves Threaten Colombia's Economy and Power Grid

Core Insights - Colombia is facing a significant energy crisis characterized by declining oil and natural gas production, leading to a potential natural gas shortage that threatens the economy [1] Natural Gas Production - Colombia's natural gas production for August 2025 decreased by 16% year over year, reaching 800 million cubic feet per day, marking the lowest production level in over a decade and approximately 33% lower than the output in 2013 [2] - Industry experts have indicated that a production level of one billion cubic feet per day is the minimum economically viable volume for Colombia [3] Natural Gas Reserves - As of the end of 2024, Colombia's proven natural gas reserves were just under 2.1 billion cubic feet, reflecting a 13% decrease from the previous year and the lowest level in over a decade, with reserves expected to last only 5.9 years at the current production rate [4] - The decline in natural gas reserves has been consistent since 2012, with the only exception being in 2021 [4] Consumption vs. Replacement - Over the past decade, Colombia consumed 4,628 billion cubic feet of natural gas but only replaced 824 billion cubic feet, indicating a declining reserve replacement ratio due to insufficient exploration and discoveries [6] Production Techniques - Most of Colombia's natural gas is associated gas from oil production, which is increasingly important as mature oilfields experience declining production [7] - The government has halted new exploration drilling contracts, further exacerbating the decline in natural gas production and reserves [7]