Analysis: Colombia’s oil industry triggered an economic miracle and is also cause for its downfall

Colombia’s economic growth and currency are closely correlated to crude oil prices. The prolonged oil price slump which began in August 2014 has hit Colombia hard. GDP growth plunged, hitting a multiyear low of 1.4% in 2017 while the Colombian peso collapsed losing 37% between 2014 and 2019.

By Matthew Smith for Oilprice.com

RIO DE JANEIRO, BRAZIL - Colombia is not a country usually associated with crude oil. Low proven petroleum reserves and falling production see Colombia rank well behind many of the global oil heavyweights, yet petroleum has emerged as a crucial economic driver and is responsible for a significant portion of export earnings and fiscal revenues.

At the peak of the last oil boom when Brent was trading at over US$100 per barrel, Colombia was pumping just over one million barrels daily, giving the economy a notable boost. By 2013, crude oil was responsible for . . .

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