Natural Gas Reserves in Bolivia Close to Depletion

Declining Production and Lack of Investment

Bolivia said on Wednesday that its natural gas reserves, which form the state’s main source of income, are close to depletion due to a lack of investment in new exploration.

The country has been suffering from declining production since 2014, Armin Dorgatin, head of state oil company YPFB, told reporters, adding: “There weren’t many exploration projects.”

Warning from President Luis Arce

Bolivian President Luis Arce also warned on Tuesday that production would fall “to the bottom.”

“We have lost a lot of gas reserves,” the president said during an event in the city of Oruro, noting that the reserves were not replenished, “and therefore the country does not have the ability to produce more.”

Natural Gas Reserves and Production Figures

The latest available data show that Bolivia’s natural gas reserves are 8.95 trillion cubic feet.

Production has fallen from 59 million cubic meters per day in 2014 to 37 million today, Durgatan said.

Exports and Economic Impact

Bolivia exports gas to Argentina and Brazil and also supplies its domestic market.

According to the Bolivian Independent Institute for Foreign Trade, natural gas sales generated about $2.97 billion in 2022, more than the country’s mining and agricultural sectors.

Investment in Exploration

Dorgatin said about $669 million will be invested in exploration this year.

Nationalization of Gas Reserves

During the presidency of Evo Morales, Bolivia in 2006 nationalized its gas reserves, which were controlled by Spanish, British, Brazilian and Argentinean companies.