Over the past decade the oil industry has been at the centre of Colombia’s economic growth. The sector accounted for nearly one-fifth of all foreign direct investment over the past 10 years, approximately half of all export revenues and, through taxes and royalties, provided up to 30% of government income. Consequently, the fall in the oil price from more than $100 per barrel in mid-2014 to less than $30 in early 2016 has had a large impact on the national economy. Major companies have been forced to drastically re-adjust their growth plans and streamline operations. While production has plateaued, exploration work has dropped off sharply. However, promising offshore discoveries, a nascent shale gas segment, and a new, cleaner and more efficient refinery underpin optimism for the long- term future of the industry.
This chapter includes an interview with Francisco José Lloreda, President, Colombian Petroleum Association.