Colombia Oil Production Falls 3% as Gas Hits Record Low

Colombia oil production continued its downward slide in January 2026, dropping 3% year-on-year to 746,400 barrels per day as the country’s hydrocarbon sector struggles with field depletion, security threats, and the lingering effects of a policy environment that has driven six international oil majors out of the country. The Rio Times, the Latin American financial news outlet, reports that the data, published by industry group Campetrol, showed a decline of 23,300 barrels per day compared to January 2025.

The decline was sharpest in Arauca, where output fell 13.1% amid persistent pipeline attacks, and Cesar, which saw a 22.4% drop. Casanare, the country’s second-largest producing region, lost 7,600 barrels per day. Only Putumayo bucked the trend, adding 1,400 barrels in a modest 6.7% gain.

Colombia Oil Production and the Gas Crisis

The gas picture is even more alarming. Campetrol reported that January’s natural gas output of 1.19 billion cubic feet per day was the lowest level in the country’s recorded history, representing a 9.4% annual decline. Meanwhile, gas imports surged 28% in February to 193 million cubic feet per day, underscoring Colombia’s growing dependence on expensive foreign supply.

Imported gas costs up to three times more than domestic production, pushing retail prices higher in cities like Bogotá and Medellín. The country lost gas self-sufficiency in late 2024, and the trajectory has only worsened since.

Ecopetrol Dominates a Shrinking Pie

State-controlled Ecopetrol remains the dominant producer, accounting for 65.1% of national output with 486,000 barrels per day. Sierracol Energy followed at 51,000 barrels, then Frontera Energy at 46,000, Geopark at 42,000, and Gran Tierra Energy at 26,000. The concentration reflects the departure of Shell, BP, ConocoPhillips, and other majors over the past decade.

Drilling activity offered one bright spot. Campetrol counted 112 active rigs in February, with 32 dedicated to exploration and development drilling — an 18.5% increase over the previous year. Meta, Casanare, and Putumayo hosted the most rigs, while the industry projects 114 active units through May.

Yet more rigs have not yet reversed the production curve. Natural field decline — estimated at 22% annually for Colombia’s mature basins — outpaces the new wells being brought online. Pipeline sabotage compounds the problem: 25 attacks on oil infrastructure were recorded in the first eight months of 2025, concentrated in Arauca, where armed groups target transport routes to extract protection payments.

A Fiscal Lifeline Under Strain

The production decline carries direct fiscal consequences. Campetrol estimates that Colombia left roughly 9.6 million barrels unproduced in 2025 due to the annual shortfall, costing the treasury an estimated $660 million at prevailing prices. Petroleum exports fell 10.3% year-on-year in January 2026 to $974 million, even as Brent crude recovered slightly to $70.90 per barrel in February.

Foreign direct investment in hydrocarbons actually rose 21% to $2.5 billion in 2025, but that inflow was not enough to offset broader FDI losses across the economy. Campetrol president Nelson Castañeda warned that without faster regulatory approvals and stronger security in producing regions, the decline will continue to erode a sector that still delivers 10% of government revenue and 35% of export earnings.

With proven reserves covering roughly six years at current extraction rates, Colombia faces a narrowing window to reverse the trend. More rigs are turning, but barrels are still falling — and every month of decline brings the country closer to the point where its fiscal framework can no longer count on oil to balance the books.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error