Bolivia's gas crisis deepens as reserves run dry

· Oil & Gas · Bolivia

Bolivia is facing a severe fuel shortage as its natural gas reserves run dry after years of underinvestment in the sector, OilPrice.com reports. Energy prices are rising further because of the ongoing war in Iran, compounding the country's economic crisis. The report traces the problems to years of poor government decision-making, citing the 2006 nationalization under then-president Evo Morales as a turning point that deterred investment. With domestic production declining and no new reserves coming online, Bolivia's position as a regional gas supplier has eroded. The immediate effect is higher fuel costs for consumers already squeezed by an economic downturn.

Why it matters：A former regional gas exporter running dry illustrates how resource nationalism and underinvestment can turn an energy-rich country into an importer, with knock-on effects for its neighbors.

Key points

  • Years of underinvestment and poor policy decisions are blamed for the decline.
  • The 2006 nationalization under Evo Morales is cited as a turning point.

Sources (original reporting)

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