No reprieve for Bolivia as hydrocarbons output falls further

Hydrocarbons production in Bolivia is headed to a potential three-year drop in 2024 amid a double-digit dip in output.

The latest numbers from the country’s statistics institute INE show that crude oil output in the first half of the year slid 11% to 3.93Mb.

Natural gas production also fell 11% in the period to 6.14Bm3, INE data reveals.

	Oil in barrels	Natural gas in millions of cubic meters
2023	8,599,810	13,390
2022	10,189,299	15,401
2021	11,438,199	16,969

Full year production of oil and natural gas in Bolivia (Source: INE)

Falling crude stock has impacted state hydrocarbons company YPFB’s refineries and led to the “historic” import of oil in March at the firm’s YPFB’s Sica Sica terminal in the Chilean port of Arica.

In recent months, Bolivia’s fuel situation worsened and required the government to import 43Ml of diesel to cover demand, as well as the implementation of measures such as increased oversight and simplifying procedures for the direct import of fuel, along with actions to increase the contribution of biofuels.

YPFB head Armin Dorgathen has highlighted that Bolivia imports around 80% of its diesel compared with 60% in 2017, 50% in 2014 and 20% in 2006.

“The supply problem has an explanation: the reduction in the production of liquid hydrocarbons and gas, caused by the lack of investment in exploration, and the unjustified increase in internal demand,” Franklin Molina, who had been hydrocarbons and energy minister up until a few weeks ago, said previously.

Read Bolivia spends $2 billion on fuel subsidies, but loses $600 million in smuggling

Presidente Luis Arce replaced Molina with Alejandro Gallardo Baldiviezo, manager of state hydrocarbons industrialization company EBIH.

“A change is always good to renew energy, ideas, commitments and the work that will be essential to bring success to the Bolivian people,” Arce said during the appointment.

In a related note, the hydrocarbons and energy ministry launched a call for proposals to reduce fuel imports through sustainable energy projects. Information is available here.

Also read Up to 15 years for new Bolivian hydrocarbons policy to bear fruit, think tank says