Energy development in Colombia and its impact on the economy

In Colombia, oil is a key export product, accounting for about half of all shipments abroad. The total oil production in Colombia, according to the EIA, is about 770 thousand b / d, but in 2023, in conditions of political instability, it may decrease by 15%.

Of great importance, among other things, are new investments in mining, which do not come to the country because of the high crime rate. The country’s proven reserves amount to about 1.8 billion barrels, but it is assumed that the total volume of recoverable reserves exceeds 7 billion barrels and 30 trillion cubic feet of shale gas.

Even if the country manages to successfully resolve internal issues and attract investment, the volume of Colombian supplies cannot even be compared with Russian exports of oil and petroleum products in the amount of more than 5 million b/d in 2021. The statements of the Colombian leader are an occasion to attract investors’ attention to their country, operating on a popular political agenda. In the long term, Colombia can increase supplies to the foreign market, but this is not a one-year story.

As for coal production, production in Colombia remained at the level of 85-90 million tons until 2020, when production sharply decreased by almost 2 times. By the end of 2021, coal production amounted to about 60 million tons, of which more than 80% was exported. In 2022, production is expected to increase by 7 million tons, to 66-67 million tons. For comparison, coal production in Russia in 2021 amounted to 438 million tons, of which 69 million tons were exported to EU countries.

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