Could Uribe's Reelection Mitigate Political Risk and Breathe New Life into Colombia's Oil Industry?

Attracting private investment is critical if the Colombian oil industry is to sustain production levels that guarantee self-sufficiency and export income. One of the critical factors affecting the attractiveness of Colombia's oil industry has been the political risk, but the results of the next presidential election could change this perspective.

* Incumbent President Alvaro Uribe is in a strong position to be reelected for a second mandate in the May 12 election. The oil industry has seen some improvements during Uribe's administration: decreasing attacks on oil infrastructure, the creation of the National Agency of Hydrocarbons, and more investor-friendly terms in the regulations governing private sector participation in oil industry.
* Concerns remain whether the atmosphere of improved security can continue. The problems related to the country's armed groups are complex and remain unsolved. It is uncertain whether Uribe's policy of confrontation is sustainable for four more years.

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