Hydrocarbons in Colombia: from the announced shortage to the possible transition

While the public debate polarizes between ideological positions on the energy transition, a technical reality advances silently: without new explorations, Colombia faces a deficit in its natural gas supply that could affect millions of households. This is not an alarmist projection, it is a certainty that demands informed and urgent decisions.

Hydrocarbons have been a fundamental part of our lives, often without us being fully aware of it. Historically, oil has been a solid pillar of our economy and it is hard to think of an activity that does not require this energy source for its viability. Natural gas has been a transformative agent in the lives of many farming families and it is a priority that it continues to reach all corners of the territory. However, for oil and gas to be available at a distribution point, extraordinary processes must occur, which I briefly describe below.

The geographical characteristics of our country make logistical aspects a real challenge and, therefore, the Colombian industry has been characterized by its adaptability and operational excellence.

The science behind the discovery

Hydrocarbons form at great depths and can become trapped in the tiny pores of rocks, creating deposits in very difficult-to-locate places. Since we cannot observe them directly, we need technologies that allow us to detect them indirectly, for which we use tools such as seismic prospecting.

This method provides us with approximate images of the subsurface that are analyzed by professionals in geology and geophysics who possess high technical competencies. They combine a large amount of information to accurately recommend where to drill a well and verify the existence of a deposit.

It is a huge responsibility, as drilling requires years of preparation, the coordinated work of multiple teams, and a multimillion-dollar investment. Even so, even when everything is done rigorously, there is always a level of uncertainty that introduces risk to this activity.

The geographical characteristics of our country make logistical aspects a real challenge and, therefore, the Colombian industry has been characterized by its adaptability and operational excellence. The National Hydrocarbons Agency (ANH) is the entity that regulates the granting of rights through the signing of exploration and production contracts that enjoy all legal formalities. Anyone interested in learning more about hydrocarbon management has the opportunity to request public information from the ANH through various means.

Building trust from the territory

Generally, exploration takes place in remote territories, where communities have little familiarity with these practices. There, it is essential to engage in dialogues that help build trust.

I remember, for example, a seismic campaign in La Guajira, near a populated area. Curiosity led many children to approach the vibration equipment. The immediate reaction of the staff was to ask them to step back for safety. However, we opted for the opposite: we invited them to participate in measuring the vibrations, showed them how to read the data, and how to control the vibration levels to meet regulatory limits.

The effect was immediate. The children understood the process, asked intelligent questions, got excited, spontaneously organized to collaborate, and in some of them, the spark of interest in geosciences shone. I have seen on numerous occasions how this type of approach plants the idea of becoming science professionals in young people —often in girls who never even imagined it possible. This is also a way to close gaps and build the country from the territory.

When the operating company starts generating income and royalties appear. The Works for Taxes and Works for Royalties mechanisms seek to ensure that the substantial resources the State receives from these activities are properly invested and result in benefits for the regions.

From discovery to royalties: a complex path

When the existence of a deposit is confirmed, an equally complex path begins: extracting and transporting hydrocarbons to distribution and consumption centers. At this stage, reservoir engineers and geologists work to produce hydrocarbons safely, efficiently, and always complying with socio-environmental requirements.

Only then does the operating company start generating income and royalties appear. The Works for Taxes and Works for Royalties mechanisms seek to ensure that the substantial resources the State receives from these activities are properly invested and result in benefits for the regions.

Fields have a limited useful life and reach the abandonment stage in which they cease production and are dismantled following legal requirements. To replace the production of declining and abandoned fields, it is essential to continue exploring to find new deposits and continue the cycle. This is precisely the crossroads that Colombia faces today.

Strict regulation and environmental protection

The entire hydrocarbon chain is strictly regulated. Operations must comply with management plans and environmental licenses that assess potential impacts and establish mitigation measures to preserve the environment. The regulations and industry practices provide special protection to surface and groundwater.

In fact, exploration and exploitation have contributed to expanding knowledge of water dynamics, which is valuable for land planning, especially in regions where other more intensive water-use activities, such as large-scale agriculture, coexist.

Colombia possesses an uncommon wealth: hydrocarbons that can leverage the energy transition, strategic minerals, abundant water resources, wind, sun, and two oceans. What we need is a shared vision, a state strategy that articulates all these options over time, without depending on political or ideological fluctuations.

The urgent dilemma: energy transition without blackout

Today, Colombia needs to complement its energy matrix with other alternative sources such as wind, solar, and geothermal, but while this occurs, it is essential to continue strengthening our fossil sources to avoid painful supply shortages in the coming years.

Colombia possesses an uncommon wealth: hydrocarbons that can leverage the energy transition, strategic minerals, abundant water resources, wind, sun, and two oceans. What we need is a shared vision, a state strategy that articulates all these options over time, without depending on political or ideological fluctuations.

In the short and medium term, natural gas is set to be the key resource for this transition, and every citizen must be aware of this reality. There are concrete options to increase our natural gas reserves — Offshore and Unconventional Deposits — but to materialize them, there must be a national awareness of their urgency and importance. The recent discoveries of natural gas and hydrogen in Putumayo and in the Eastern Cordillera and Sinú-San Jacinto basins represent extraordinary opportunities that can position Colombia as a regional leader in the energy transition.

The dialogue that builds the future

It is necessary for all citizens to raise our level of understanding about the importance of these decisions. Only then can we move towards an energetically secure future. I can affirm that the quality of the dialogue between communities, institutions, and industry is what will define the scope of the agreements we must build to advance solidly.

Transparent, well-informed, and long-term oriented conversations are required. It is time to move beyond transactional pacts and think about the country we want to build, to focus together on making it a reality.