Colombia's Oil and Gas Reserves Continue to Decline Amid Investment Slump

Colombia's National Hydrocarbons Agency (ANH) has released its 2025 report, revealing a persistent decline in the nation's proven oil and natural gas reserves. This contraction is driven by a lack of exploration spending and a regulatory environment that has deterred foreign investment under President Gustavo Petro's administration. The shrinking reserve base, coupled with falling production levels, poses a significant threat to Colombia's energy security as the country faces a potential power crisis and increasing reliance on expensive liquefied natural gas imports.

According to the ANH 2025 report, Colombia’s proven (1P) oil reserves fell by nearly 1% year-over-year to just over 2 billion barrels, while 2P and 3P reserves saw steeper declines of 2% and 3%, respectively. Although the productive life of 1P reserves technically rose from 7.2 years to 7.6 years, this increase is attributed to a significant drop in output rather than new discoveries, with production hitting a multiyear low of 724,910 barrels per day in April 2026. The Llanos Basin remains the country's primary source of crude, holding 74% of 1P reserves, with the aging Rubiales field continuing as the most productive acreage despite the broader industry downturn.

The natural gas sector faces even more dire statistics, as 1P reserves plummeted by 17% to 1.7 trillion cubic feet, and daily production fell 14% year-over-year to 694 million cubic feet in April 2026. This decline coincides with a looming energy crisis exacerbated by the El Niño weather phenomenon, which threatens the hydroelectric plants that typically provide 65% of Colombia’s electricity. To compensate for failing hydro-generation, the government is forced to rely on gas-fired thermal plants, driving up demand for the fuel at a time when domestic supply is at its lowest level in a decade, forcing costly liquefied natural gas (LNG) imports to account for 17% of consumption.

Industry analysts attribute the current state of the Colombian oil patch to a combination of weak prices and the anti-petroleum reforms of President Gustavo Petro, including the cessation of new exploration contracts and attempts to ban fracking. These policies, alongside rising security risks in remote regions, have led major players like Exxon to exit the country and others to drastically reduce capital expenditures. The sector is now looking toward president-elect Abelardo de la Espriella, scheduled to take office in August 2026, for regulatory reforms and tax relief that might revive investment and stabilize the country's fiscal balance and cost-of-living crisis.