Hopes among foreign energy companies that Colombia’s coast could serve as a key source of oil and gas for the future are being dashed as many exploration projects lag expectations, with unwelcomed regulation further deflating optimism.
The disappointing finds and regulatory roadblocks are pushing some energy firms to abandon the Andean nation for neighboring countries like Peru, where incentives for exploring and producing have become clearer.
The loss of foreign capital in Colombia’s energy industry is expected to exacerbate trade imbalances coming from a larger need for imports, especially of natural gas, while domestic output falls.
Colombia’s offshore energy hopes deflate amid poor discoveries
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