Colombia Pivots Back to Fracking to Avert Energy Crisis

Colombia’s energy sector is currently in a state of managed decline, with production figures falling and national reserves hitting multi-decade lows. Proven oil reserves dropped to 2.02 billion barrels at the end of 2025, while natural gas reserves plummeted 17% to 1.717 trillion cubic feet. With current domestic supply expected to last only six years, the country has become increasingly reliant on expensive liquefied natural gas (LNG) imports, which now account for a quarter of domestic consumption.

The shift toward fracking marks a sharp departure from the previous administration of Gustavo Petro, who sought to prohibit the practice to curb environmental risks. Petro’s policies, including tax hikes on extractive industries and the suspension of drilling contracts, led to the exit of major operators like ExxonMobil and contributed to a record 8.1% of GDP budget deficit. De la Espriella, who assumed office in 2026, has labeled energy security a matter of national sovereignty, signaling a return to the Middle Magdalena Valley, where the Cretaceous La Luna formation holds an estimated 4.6 billion barrels of recoverable shale oil.

Economic pressure is mounting as global LNG prices surge, driven by infrastructure damage in Qatar and shipping disruptions in the Strait of Hormuz. With October and November 2026 contracts priced 79% higher than those from earlier in the year, the industrial sector is facing a severe cost squeeze. The government now argues that tapping into the country’s 54.7 trillion cubic feet of technically recoverable shale gas is essential to insulating Colombia from volatile international energy markets and replenishing its drained fiscal coffers.