Colombia's offshore energy hopes deflate amid poor discoveries

8/8/2025 18:45

Hopes among foreign energy companies that Colombia's coast could serve as a key source of oil and gas for the future are being dashed as many exploration projects lag expectations, with unwelcomed regulation further deflating optimism.



The disappointing finds and regulatory roadblocks are pushing some energy firms to abandon the Andean nation for neighboring countries like Peru, where incentives for exploring and producing have become clearer.



The loss of foreign capital in Colombia's energy industry is expected to exacerbate trade imbalances coming from a larger need for imports, especially of natural gas, while domestic output falls.



Despite the country's increasing reliance on foreign energy, the government of leftist President Gustavo Petro has defended a ban on fracking and imposed stricter rules for exploration and production of conventional oil and gas, creating delays and limiting opportunities for private investors in the industry.