Can Fracking Reverse Colombia’s Oil and Gas Decline?

Colombia's petroleum industry is in a downward spiral, with production falling despite attempts to increase output and improve efficiency. The new president, Abelardo de la Espriella, has reintroduced hydraulic fracturing, commonly known as fracking, as a way to halt the decline in hydrocarbon output. However, Colombia has a history of controversy surrounding fracking, with the Council of State imposing a moratorium in 2018.

Despite this, President Gustavo Petro attempted to ban fracking due to environmental concerns during his tenure, but opposition to the technique remains strong.

The shift in energy policy forced Ecopetrol, Colombia's national oil company, to suspend two fracking pilots it was developing with ExxonMobil. This disruption has had serious economic consequences, as oil exports, a crucial source of revenue, began to dwindle in 2022. The government's attempts to reduce its dependence on hydrocarbons, including hiking taxes on extractive industries and freezing new drilling contracts, have only exacerbated the problem.

As a result, oil revenues dropped to $7.7 billion, or 28% of total export earnings, during the first half of 2026.

Colombia's vulnerability to a severe energy crisis has become increasingly apparent due to its reliance on costly liquefied natural gas (LNG) imports. The country currently relies on LNG for around a quarter of its domestic consumption, and this dependence is expected to grow to one-third by 2027. The surge in LNG prices, driven by geopolitical factors such as Iran's strikes on Qatar's LNG processing facilities, has put additional strain on Colombia's already fragile economy.

The industrial sector, which heavily relies on natural gas for manufacturing, is particularly affected by the dwindling domestic natural gas supplies and the need to import LNG at higher costs.