The National Hydrocarbons Agency (ANH) revealed the ‘Report on reserves and contingent resources of hydrocarbons in Colombia’, which left a negative balance in terms of natural gas, while oil was bittersweet.
This report collects information from 474 oil fields in Colombia and has a cut-off date of December 31, 2022.
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According to the ANH, at the end of 2022 the proven reserves (1P) of oil, that is, those that have a 90 percent probability of being extracted from the subsoil, they increased 1.74 percent and totaled 2,074 million barrels.
With oil production of 275 million barrels in 2022 – an increase of 6 million compared to the previous year – these reserves are now enough for 7.5 years, which means a decrease in the useful life because at the end of 2021 self-sufficiency was 7.6 years.
At regional level, Meta contributes more than half of the country’s proven reserves (54 percent), followed by Casanare (16 percent), Santander (7 percent) and Arauca (5 percent). Departments such as Boyacá, Huila, Cesar, Bolívar, among others, contribute the remainder with percentages of less than 5 percent.
Faced with these data, Julio César Vera, president of the Xua Energy Foundation, assured that it is good news that, for another year, the country has achieved a replacement of the crude oil reserves that it consumed in 2022so self-sufficiency in years has fallen a bit due to the increase in production.
(Also read: Minister Irene Vélez evaded answering whether or not new oil contracts will be delivered)
Hydrocarbon reserves of Colombia to 2022.
Less natural gas reserves
Regarding the proven reserves of natural gas, at the end of 2022 they were located at 2,817 cubic gigapietesa drop of 11 percent compared to the 3,164 cubic terapies that were reported for 2021.
The gas production was 0.39 cubic terapies, which led to The life of Colombia’s gas reserves is 7.2 yearswhen at the end of 2021 they reached 8 years.
Public policy signals become fundamental, as well as environmental conditions
The main reserves are located in the departments of Casanare, which ranks first with 49 percent. Then appear La Guajira (20 percent) and Córdoba (9 percent).
Regarding contingent resources, by the end of 2022 it was evidenced that 3C contingent resources -in the case of crude oil- increased by 204 million barrels, while in regards to natural gas, they increased by 5.8 cubic terapies.
“The latter corresponds to 2.9 cubic terapiés reclassified resources from the Sinú and Guajira Offshore basins and 2.8 cubic terapiés from onshore fields. The importance of developing these offshore discoveries is highlighted“, affirmed the president of the ANH, Clara Liliana Guatame, during the Naturgás 2023 Congress.
For her part, the president of Naturgás, Luz Stella Murgas, assured that the only way that exists to develop this great natural gas potential that Colombia has is by accelerating and expanding exploratory activity.
“The signals of public policy become fundamental, as well as the conditions of the environment, for attract investment in exploration that is required to develop that potential”, he added.
(Also read: Reserves of the 6 largest oil companies in Colombia are enough for fewer years)
Hydrocarbon reserves of Colombia to 2022.
Will there be new oil contracts?
Greater efficiency in existing contracts is the route of the energy transition
The reserves data was awaited by the companies in the sector because it was essential for the National Government to take a final decision on whether or not to deliver new contracts for the exploration and production of hydrocarbons.
However, after learning of this report, at a press conference the journalists insisted on the Minister of Mines and Energy, Irene Vélezabout whether there was already a decision on the matter, but the official avoided giving a clean answer.
He only limited himself to saying that “the policy of this Government is working because the recovery improved from 21 to 23 percent, which means that what we are encouraging has an effect on increasing reserves.”
“This is a clear demonstration of what we are doing well and that greater efficiency in existing contracts is the route of the energy transition,” added the official, while noting that a policy of greater efficiency in exploration and exploitation will continue through improved recovery and accelerating a regulation that allows produce the gas that has been discovered in the Caribbean Sea.
For the president of the Xua Energy Foundation, the facts and data are showing the Government that new contracts are needed. Therefore, it is expected that decisions will be made in this regard, which will allow the extension of exploratory activities to the contiguous areas of blocks currently in production and in mature basins.
(Also read: Reserves of the 6 largest oil companies in Colombia are enough for fewer years)
Minister of Mines and Energy, Irene Vélez
In addition, that other opportunities that exist in moderately developed emerging basins were subsequently reviewed and, of course, that the possibility of allowing and promoting new exploration in frontier basins be studied later, which is still needed for the country and its sovereignty and energy security.
We need to build resilience because climate change can surprise us
Meanwhile, former Finance Minister Mauricio Cárdenas stated that natural gas reserves for 7.2 years are “a threat to energy security”; therefore, it is necessary to carry out diversification and “not put all the eggs in the same basket. We need to build resilience because climate change can surprise us, a very strong drought can compromise the ability to generate energy.”
For his part, the Minister of Finance, Ricardo Bonilla, stressed that “the results of this report are key to projections regarding hydrocarbon reserves and the country’s energy transition process”.
Insist that the energy transition It does not seek to end oil production, but on the contrary, it seeks to substitute export products to balance the country’s commercial basket.
The Minister of Finance also explained that, together with the ministries of Commerce, Mines and Energy and Agriculture, among others, they are working to boost the growth of exports, not only mining-energy but also those of other lines.
These reserve figures also make it possible to consolidate the country’s macroeconomic stability, said Bonilla, noting that The Government will continue to work on a policy that will increase revenue and reduce expenses to contribute, in this way, to closing the fiscal deficit.
