De la Espriella Vows to Revive Colombia's Oil and Gas Sector

Governments in Latin America are re-evaluating energy sovereignty frameworks, marked by Colombia’s policy shift to boost domestic hydrocarbons through Ecopetrol and Mexico’s evaluation of low-impact hydraulic fracturing. Mexico's technical assessment of unconventional gas extraction aims to curb a 75% reliance on US pipeline imports while navigating environmental regulations, community consultation requirements, and regional water limits. This regulatory pivot directly impacts state energy operators like PEMEX and Ecopetrol, international equipment vendors, and industrial natural gas consumers seeking grid resilience.
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Colombian President Abelardo de la Espriella pledged to revive the nation’s oil and gas sector, restore state-owned energy company Ecopetrol, and reinforce the electricity system during his inauguration, framing energy security as a core element of national sovereignty.

Addressing the country, de la Espriella stated that Colombia will pursue an energy transition away from oil, gas, and coal toward renewable sources such as wind and solar power, but insisted the process must not come at the expense of domestic hydrocarbon production. “I believe in the energy transition. “I am convinced that we need to move toward cleaner, efficient, and diversified energy sources. But that transition must be built from strength, not from weakness, from self-sufficiency and not from dependence,” he stressed.

The position marks a direct policy shift from former President Gustavo Petro, who suspended new oil and gas exploration contracts and prioritized environmental initiatives aimed at phasing out fossil fuels. “Colombia opposes a COP30 declaration that does not tell the world the scientific truth,” adding that “life on the planet… is only possible if we separate ourselves from oil, coal and natural gas,” Petro posted on X within the framework of the COP30 climate summit in Belém, Brazil, where Colombia sharply criticized the final declaration for failing to explicitly address the transition away from fossil fuels. 

Under the new energy strategy, the administration plans to expand oil and gas exploration to rebuild declining reserves, restore investor confidence, and secure government revenues. Rebuilding Ecopetrol, Colombia's majority state-owned oil company, was designated as a primary objective. Additionally, the administration confirmed it will authorize hydraulic fracturing under technical and environmental standards to bolster domestic output.

The president also highlighted vulnerabilities within the national power grid, citing declining reserves, delayed infrastructure projects, and rising electricity demand. With the approaching El Niño weather phenomenon expected to bring prolonged droughts that could reduce hydroelectric generation capacity, the administration committed to implementing immediate measures to prevent supply disruptions and safeguard the energy system.

Ecopetrol’s Strategy for Gas Self-Sufficiency and Operational Growth

In an interview with Noticias Caracol, Luis Felipe Henao, Chair of the Board, Ecopetrol, outlined the state oil company's financial position and operational strategy. Henao noted that Ecopetrol's stock price recorded a 73% decline compared to 2022, accompanied by 13 consecutive quarters without earnings growth. Over the same period, domestic gas production dropped 40%, ending Colombia's 45-year period of gas self-sufficiency.

To adjust corporate governance, Ecopetrol notified the Ministry of Finance on Aug. 4, 2026, to reconstitute its board following the resignations of board members Ángela Robledo, Tatiana Roa, and Juan Gonzalo Castaño. The new board is scheduled to be formed by late August or early September 2026.

The operational strategy includes expanding exploration and initiating hydraulic fracturing projects in Yondo and Puerto Berrio in Antioquia, Puerto Wilches and Barrancabermeja in Santander, and San Martin in Cesar. The strategy calls on the National Environmental Licensing Authority (ANLA) and the National Hydrocarbons Agency (ANH) to formalize contracts to increase current gas reserves tenfold.

Regarding offshore and international assets, Ecopetrol aims to advance the Sirius project to increase national gas reserves, a process requiring 130 prior consultations with local communities. Internationally, the company is expanding through the Brava and Gato Mato fields in Brazil.

For institutional oversight, Ecopetrol initiated an internal forensic audit to examine transactions, contracts, and internal communications over the past four years. Meanwhile, the Ministry of Finance confirmed that the national government has no plans to sell its 88% stake in Ecopetrol or its subsidiaries.

Mexico Also Explores Low-Impact Fracking Technologies

Parallel to energy shifts in Colombia, Mexico is also exploring low-impact hydraulic fracturing techniques to boost domestic output and reduce reliance on natural gas imports. To evaluate unconventional gas extraction, the federal government established the Scientific Committee on Energy Sovereignty and Unconventional Natural Gas Deposits, coordinated by SENER and SEMARNAT and led by SECIHTI. 

The panel includes researchers from UNAM, IPN, UAM, state universities in Tamaulipas, Nuevo Leon, Veracruz, and Coahuila, alongside the Mexican Petroleum Institute (IMP) and the Mexican Institute of Water Technology (IMTA). The committee examined technological approaches including biodegradable chemical additives, water recycling systems, and the use of underground saltwater or mine runoff to evaluate whether non-conventional reserves can be developed with reduced environmental impacts.

Following technical reviews, the committee recommended against hydraulic fracturing in the Tampico-Misantla basin due to environmental, social, and biodiversity risk factors. However, the advisory group recommended continued viability assessments for the Sabinas-Burro-Picachos basin across Coahuila and Nuevo Leon as well as the Burgos basin in Tamaulipas. President Claudia Sheinbaum confirmed that the administration will accept the panel's recommendation to prohibit operations in Tampico-Misantla and condition further exploratory steps in the northern basins on confirming the presence of underground saltwater rather than freshwater sources reserved for human consumption.

While Mexican authorities consider the scientific panel's findings as a primary policy input, civil society organizations maintain that environmentally sustainable hydraulic fracturing remains unviable. Jesús Pablo Dorantes, Environmental Vice President, CARAL, emphasizes that commercial deployment extends beyond expedited technical reviews. Dorantes notes that long-term basin development requires comprehensive Strategic Environmental Assessments (SEA) to evaluate cumulative ecological impacts, mandatory consultations with local ejidos and indigenous communities under international agreements, and formal project-level Environmental Impact Assessments (EIA) administered by autonomous regulatory bodies including ASEA.