Hydrocarbon-producing municipalities register higher indices of social and economic well-being in Colombia

• The Territorial Development Monitor – MDT, an initiative by Jaime Arteaga & Associates, analyzed the changes identified in the oil and gas producing regions of the country, across 12 dimensions related to social, economic, and environmental aspects, over the last 10 years.
• Among the results, it stands out that oil-producing municipalities of category 6 receive 30% more in property tax revenues compared to the average of municipalities in the same category.
• The growth of the planted area in the main agricultural crops recorded in oil-producing municipalities exceeds almost four times the national average growth between 2013 and 2022.

Hydrocarbons contribute to the well-being and economic development of Colombians; this is one of the main conclusions of the Territorial Development Monitor – MDT, which provides an overview of the oil and gas producing territories, where more than 6.8 million Colombians live, to assess how these municipalities have progressed compared to the rest of the country.

The Monitor shows historical information on the development that hydrocarbon-producing municipalities have had over the last ten years, through a series of indicators distributed across 12 dimensions, which include: population analysis, municipal performance, economic development, agricultural sector, tourism, mining-energy sector, financial inclusion, education, health, security and coexistence, and gender-based violence, among others.

At the launch, Jaime Arteaga de Brigard, director of Jaime Arteaga and Associates, highlighted that “the figures clearly show that oil and gas producing municipalities have achieved great accomplishments not only economically but also socially. The data also express that the oil and gas industry does not compete with other activities such as agriculture: on the contrary, the oil and gas industry is a driver of agricultural development.”.

According to the analysis, the levels of multidimensional poverty in oil and gas producing municipalities are below the national level: the average is 40.8% while the national average is 41.8%. Additionally, these municipalities have higher levels of tax collection, such as industry and commerce, whose average per capita collection in oil and gas producing municipalities is almost 80% more than the national average.

«Considering the results of the monitor, it is evident that the hydrocarbon industry plays a fundamental role in reducing inequalities and improving the well-being of the Colombian population. Therefore, it is imperative that the country increases hydrocarbon production and reserves taking advantage of current oil prices, while also working to improve its competitiveness and attract investments.”, Nelson Castañeda, executive president of Campetrol, mentioned.

Likewise, the MDT shows that the per capita GDP of these municipalities is higher than the national average. However, the dependence on royalties in oil-producing municipalities doubles the national average.

“The oil and gas industry in Colombia is committed to continuing to be a builder of a better quality of life for Colombians; we know that the poverty in which millions of Colombians live is the issue that needs to be resolved to advance towards energy transition and sustainable development; and the hydrocarbons sector is the one that can contribute the most to achieving an equitable society; this monitor shows us that we have contributed and that we still have many challenges to close social gaps.”, highlighted Carolina Rojas, vice president of Communications and Strategy of the Colombian Association of Oil and Gas (ACP).

Oil and gas producing municipalities excel in agriculture and financing.

Among other results, the Monitor highlights that, between 2013 and 2022, oil and gas producing municipalities have experienced significant agricultural development. The area planted with the main crops in the country grew by 27.71% in hydrocarbon-producing municipalities, in contrast to the growth recorded at the national level, which was 7.41%.

As evidenced in the report, while palm oil has been the dominant agricultural crop in oil and gas producing municipalities, soybean and lemon crops are experiencing more significant growth; it also shows that, in 2022, 96% of the national soybean production came from these localities.

Furthermore, more than half of the areas designated for palm oil and rice cultivation across the country were located in producing municipalities. Meanwhile, the participation of oil and gas producers in national cattle production increased by 12.41% between 2018 and 2024.

Similarly, the advances of the municipalities in education and health are notable. While the net coverage in education at the national level was 86.91% for 2021, in oil and gas producing municipalities the net coverage rate was 91.31%. For its part, these municipalities demonstrate a municipal health performance (MDM) of 85.2 points, higher than the national average (84.5).

Finally, it is also necessary to point out the challenges that, according to the presented Monitor, persist in these municipalities, particularly in terms of security. The homicide rate in oil and gas producing municipalities (31 per 100,000 inhabitants) is above the national average (26 per 100,000 inhabitants). Likewise, the kidnapping rate and the displacement rate in these municipalities are more than double the national average.

With the presentation of this analysis, the hydrocarbons sector reaffirms its commitment to continue working and contributing to the well-being of Colombians, promoting and driving investments and actions that favor the social, economic, and environmental dynamics of the regions.