Political instability and growing crime in Colombia is weighing on its already-struggling oil industry. Colombia still relies heavily on oil and gas for its own energy security as well as for its contribution to the GDP. While dwindling supplies and the potential for an upsurge in conflict are driving away foreign investors, Colombia still has a large amount of proven reserves and ongoing interest from existing investors. Colombia’s dwindling supplies and failure to attract new foreign investment means its oil industry is unlikely to reach pre-pandemic levels this decade according to Rystad Energy. Despite being Latin America’s third-biggest oil producer, after Brazil and Mexico, Colombia’s oil output has dropped to just 730,000 bpd, falling further from 754,000 bpd in 2020. Its gas industry is faring no better. Output has been declining since 2012 and Colombia now produces just 1.07 Bcf/d. Sofia Forestieri, an upstream analyst, explained the situation, “Colombia […]