In the Headlines
February 5, 2021

Can Colombia's Oil Production Bounce Back This Year?

Energy Advisor, Inter-American Dialogue

Energy Partner José Zapata was interviewed by Energy Advisor about the 2021 outlook for oil production in Colombia. According to the country's Ministry of Mines and Energy, production was down 11.6 percent through November 2020 compared to the same period in 2019. Mr. Zapata explained that factors including the fall in international oil prices as well as the health and employment crises resulting from the pandemic contributed to the decrease in production. He also described different steps being taken to increase production, such as the Permanent Process for Area Assignment, whose goal is to ease allocation of oil and gas blocks during the first quarter of 2021. He added that generating more investment will also be critical for the sector's recovery.

"Such measures, as well as the oil and gas block adjudications processes scheduled for 2021, should help Colombia recover from lower oil production in 2020," he said. "Colombia also needs to allow for rules and contracts that improve its competitive edge if it is to attract renewed investment in the sector, and it must definitively provide strong messages as to security and the rule of law."

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