Venezuelan Crude on the Rise, is Colombia at Risk?
Portafolio Journalist 03.05.2026 23:41 Updated: 03.05.2026 23:43
TL;DR
- Venezuela's new Hydrocarbons Law is designed to attract private investment.
- The law's approval was relatively swift, signaling a willingness for reform.
- The new model still grants significant discretionary power to the executive branch regarding oil contracts.
- Venezuela requires over US$100 trillion in investments to revitalize its oil industry.
- Companies like Repsol are showing interest in resuming operations in Venezuela.
- Venezuela possesses about 30% of the world's oil reserves.
- Venezuela's 'break even price' for new projects is between US$20-US$30 per barrel.
- Colombia's oil exploration is experiencing a paralysis with higher costs.
- The break-even price for Colombian crude is around US$50 per barrel.
- Global oil demand is expected to peak in the mid-2030s, favoring countries with competitive production costs.
- Colombia has a strong institutional system but needs to react quickly to boost exploration.