Although Mexico has held the interest of investors looking for the next boom in offshore oil production, there is now evidence that Colombia may be looking towards increasing its presence in the offshore oil market. This is due in part to Colombia being unsure of their energy future due to the decline in their reserves.
The government of Colombia is hoping to bring oil rigs online and take advantage of the estimated 10-55 billion barrels of oil that could be extracted. This could substantially increase their reserves since at the moment there is only 6.6 years worth of oil on reserve.
The amount of drilling that Colombia needs to do to increase their energy reserves is substantial. The National Petroleum Agency estimates that at staggering 200-230 wells need to be drilled each year starting in 2015 if Colombia wants to meet their energy goals. Since only 6 wells have been drilled in the first quarter of 2015 it is looking very unlikely that production will reach the level the Colombian government desires.
Competition from Mexico could be less in the coming months in the wake of the offshore oil rig explosion that resulted in Mexico oil production dropping from 650,000 to 430,000 barrels per day. Colombia has a lot of work ahead to secure their energy future. Low oil prices are making off shore drilling investments less lucrative to some investors. More rigs coming online could increase the amount of oil on the market and cause prices to go lower.Last updated on 12:57PM - 14/04/15