Bolivia’s natural gas production has fallen from a historical peak of 61 million cubic meters daily in 2014 to 26 million in January 2026, representing a 57 percent decline. Export revenues dropped from $6.113 billion in 2013 to $1.076 billion in 2025, an 82 percent reduction. Proven natural gas reserves stand at 3.7 trillion cubic feet according to state company YPFB, down from 10.7 trillion cubic feet reported in 2017.
Argentina ceased importing Bolivian gas in September 2024, leaving Brazil as the sole export market. The Arce administration, which governed from 2020 to 2025, blamed the Morales government for neglecting investments needed to sustain gas production during his 2006-2019 tenure.
Hydrocarbon Minister Mauricio Medinaceli told EFE in an April 20 interview that Bolivia’s economic boom through 2014 resulted not from nationalization but from a gas export contract with Brazil negotiated between 1974 and 1999. The contract linked gas prices to oil prices, allowing Bolivia to benefit when crude reached over $100 per barrel during the Morales administration. Medinaceli credited the direct hydrocarbon tax approved in May 2005, before nationalization, with generating substantial revenues while simultaneously disincentivizing exploration investments.
The minister characterized the 2005 tax as “blind” with positive revenue effects but negative consequences for exploration activity, leading to the current production crisis. The Paz government plans to submit new hydrocarbon legislation establishing a model where YPFB operates with both domestic and international private investors, seeking to restore Bolivia’s status as a producing country.
This article was curated and published as part of our South American energy market coverage.
