Colombian O&G starts to feel investment squeeze

Decarbonisation strategy is already hurting upstream appetite and threatening near-term energy security

Colombian President Gustavo Petro hardly disguised his aversion to the country’s hydrocarbons sector heading into the 2022 election. Since taking office, his government has done much to hamper the upstream and left Colombia facing a severe gas deficit. In July, exploration drilling activity fell by around 20% year-on-year as regulatory changes and bans on new exploration and production contracts started to bite. At his most fiery, the president has compared the impact of oil and gas in Colombia to that of cocaine.  “Petro’s administration has signalled a desire to reduce reliance on fossil fuels, which has led to a slowdown in new exploration activities and contract commitments,” said Jose Z