Bolivia urgently needs a new hydrocarbon law to boost the exploration and exploitation of new wells. Without this, the country risks becoming a fuel importer due to depleting reserves.
Former Minister Álvaro Ríos emphasizes this need, highlighting the failure of the 2015 Incentives Law. This law never took effect, leading to a production decline and increased fuel imports.
Armin Dorgathen, president of Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), called the 2015 law a “mistake.” The lack of effective legislation left Bolivia vulnerable.
Ríos, also a former executive secretary of the Latin American Energy Organization (OLADE), stresses that Bolivia needs gasoline, diesel, liquefied petroleum gas, and natural gas for the next 30 years.
Spending $5 billion on fuel imports is not sustainable when there are resources underground.
Since 2017, Bolivia’s economy has shifted significantly due to changes in hydrocarbon production.
During Evo Morales’ presidency (2006–2019), natural gas export revenues fueled economic growth and reduced poverty. However, recently, Bolivia has imported more fuel than it exports.
Bolivia’s Energy Sector at Crossroads
In 2021, Bolivia’s gasoline and diesel imports reached a historic high of $2.12 billion. This record was surpassed in 2022 with approximately $3 billion in imports.
Natural gas reserves have also declined. The Mesa administration certified 70 trillion cubic feet (TCF) of reserves. By 2009, during Morales’ tenure, this figure had dropped to 9 TCF.
These figures underscore the urgent need for a new hydrocarbon law. Effective legislation would ensure Bolivia’s energy security and economic stability.
New laws could incentivize exploration, boost local production, and reduce reliance on imports.
Bolivia’s future depends on addressing this issue now. The country has the resources beneath its soil.
With the right policies, it can regain control over its energy sector and secure its economic future.
Understanding the importance of this law can lead to significant gains for Bolivia. This is especially crucial as the nation navigates its evolving energy landscape.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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