Fracking in Colombia and Mexico: Pragmatism Needed

Fracking, or hydraulic fracturing, has revolutionized energy production, particularly in the United States. This technique involves injecting high-pressure water, sand, and chemicals into compact rock formations to release natural gas and oil. After nearly two decades of development, fracking became economically viable in the U.S. by 1998. Combined with horizontal drilling, it dramatically lowered costs and increased productivity, transforming the U.S. into the world's leading producer and exporter of oil and natural gas.

The impact of fracking on the U.S. economy has been profound. It led to greater energy independence within a decade, provided more competitive energy prices for consumers and industries, spurred job creation, generated new tax revenues, improved the trade balance, and boosted the petrochemical industry. Production figures highlight this success: natural gas output is projected to nearly double from 2010 to 2036, while oil production is expected to more than double in the same period, with annual growth rates around 3-4%.

Argentina is following a similar path with its Vaca Muerta formation. Fracking has driven a significant increase in natural gas production since 2016, with projections showing near-doubling by 2036. Oil production is also set to triple. These gains are helping Argentina reduce its reliance on imported gas, despite a complex macroeconomic environment. The article suggests fracking could be key to resolving Argentina's long-standing economic challenges.

Colombia, however, has seen its fracking activities curtailed since President Gustavo Petro took office in 2022. The current government's stance is described as "unpragmatic" and "nostalgic." Despite declining conventional production, Colombia possesses resources suitable for fracking. The article advocates for the relaunch of fracking in Colombia under the new government, implying a potential shift from the current administration's policies.