Colombia Revives Oil And Gas After Four-Year Renewable Energy Push

Colombia has recently decided to revitalize its oil and gas industry after a four-year push towards renewable energy. President Gustavo Petro, who initiated this clean energy transition, banned new oil, gas, and coal exploration contracts, while securing international funding for green energy projects. This led to a surge in renewable energy capacity, reaching over 4,300 megawatts by 2026, and solar energy generation even surpassed coal-fired electricity generation in 2025.

However, Colombia's newly elected right-wing leader, President Abelardo de la Espriella, has pledged to revive the nation's oil and gas sector, with plans to authorize fracking under strict standards and restore Ecopetrol S.A., the state-owned energy company. Despite his commitment to an energy transition, de la Espriella emphasized that it must be built on strength and self-sufficiency, not dependence on foreign energy sources.

Ecopetrol, which accounts for nearly two-thirds of Colombia's fossil fuel production, has faced declining profits and increased government interference under Petro's administration. The company's total transfers to the government spiked to 35 trillion Colombian Pesos ($11.1 billion) annually, with profits dropping nearly 40% in 2025.

Ecopetrol's 2026 Annual Investment Plan now targets total investments between COP 22 and 27 trillion ($5.7 billion to $7 billion), with 70% of the budget allocated to upstream hydrocarbons, primarily for drilling up to 430 development wells. The remaining 30% will focus on power transmission, road infrastructure, and cleaner energy initiatives, with direct renewable energy projects comprising only about 3% of this segment.