Inspenet, July 22, 2023.
A new report suggests that Brazil, Argentina and Guyana could become major energy players this decade. In the case of Guyana, the discovery of large deepwater oil reserves has drastically changed the course of the South American country.
It is estimated that its oil production could reach 1.2 million barrels per day by the year 2028 , thus becoming one of the main producers worldwide. This prosperity has captured the attention of foreign political figures, such as US Secretary of State Antony Blinken.
The impact of these energy players in Latin America
Guyana’s surprising gains are boosting oil production in Latin America, forecast to rise to as much as 5.8 million barrels a day by 2028 . In this growth, Argentina, Brazil and Guyana will lead the revival of oil production in the region, reversing a decade of decline in Latin American oil production.
However, the energy transition presents itself as a challenge for other regions of Latin America. Some state oil companies face inefficiency problems and produce low-quality oil.
In the case of Brazil, its oil boom dates back decades, when important pre-salt fields were discovered off the coast of São Paulo. These have transformed Brazil into one of the world’s leading oil producers.
Oil extraction in that country is highly efficient due to favorable geology and investments in advanced technology. According to experts, both Brazil and Guyana have the capacity to produce oil profitably at a significantly lower cost than today.
With the return of Lula da Silva to the presidency, Brazil expects to receive positive news in the oil sector. Petrobras will allocate a significant part of its exploration budget over the next five years to an area in northeastern Brazil close to Guyana, where it is estimated to find more than 10 billion barrels of recoverable oil.
Brazil, Argentina and Guyana are standing out as the main energy players in the region, boosting oil production and attracting investment. However, the energy transition presents challenges for other Latin American countries. The new geographic configuration of oil in the region provides valuable lessons for the world in terms of efficiency and sustainability.
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