Bolivia and its new milestone in the gas industry: the discovery in La Paz opens a economically promising new chapter.

The President of Bolivia, Luis Arce, has announced a milestone that promises to mark a before and after in the history of Bolivian gas. During the anniversary celebrations of the La Paz department, Arce revealed that Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), the state oil company, has discovered an impressive gas field in the north of La Paz that could signify the beginning of a "second era" for the country's gas industry. With 1.7 trillion cubic feet of potential reserves, this discovery is positioned as the most significant since 2005, sparking hope and enthusiasm among Bolivians. Since its beginnings in the exploitation of non-renewable natural resources in 1545 with the excavation of the Cerro Rico de Potosí, Bolivia has relied heavily on its production and export of gas. During Evo Morales' government, between 2006 and 2019, the country became an important supplier to Brazil and Argentina, generating significant income that sustained its economy. However, over time, the gas fields depleted and gas production decreased considerably, leading President Arce to state that "gas has run out" and that they were facing an economic dilemma. Arce pointed out that decisions made during previous governments, including Morales' administration in which he himself served as Minister of Economy, contributed to the decline of the Bolivian gas industry. He criticized the $500 million investment in the north of La Paz that yielded no results, contrasting it with the $50 million invested in the successful drilling of the Mayaya Centro X-1 well during his administration. This new discovery in the northern Sub-Andean region represents a unique opportunity to revitalize the industry and open a new chapter in Bolivia's gas history. Throughout the past decade, Bolivia has allocated significant resources to exploring new gas fields without success, until now. Failed attempts in the southern Sub-Andean basin led to the belief that the region had been depleted, making the discovery in the northern Sub-Andean region even more crucial. With the potential of up to 17 trillion cubic feet of reserves across the basin, the potential for economic growth and industry reactivation is enormous. However, challenges will arise on the path to commercially exploiting this new gas field. The need for significant investments, estimated between $1.3 and $1.5 billion to develop the necessary infrastructure, raises questions about the feasibility and time required for the project to materialize. Furthermore, the current exchange rate crisis and lack of foreign currency in Bolivia may hinder the financing of this venture, opening the door to the participation of foreign companies, including the Brazilian oil company Petrobras. The recent visit of the Brazilian President, Luiz Inácio Lula da Silva, to Bolivia and the agreement for Petrobras to resume a leading role in the extractive industry reflect the importance of international alliances in this new chapter of the Bolivian gas industry. The need to relax laws to attract foreign investments, combined with the uncertainty about the actual size of the reserves, presents a complex scenario for the industry's future. Despite the challenges, the discovery of the gas field in the north of La Paz represents a unique opportunity for Bolivia to revive its gas industry and lay the foundations for a prosperous future.