PRESS RELEASE – Santiago, November 4TH, 2015
According to BNamericas’ 2016 Outlook for Oil and Gas, upstream activity in hydrocarbons in Latin America will not be as deeply impacted by the price shock in comparison to other regions next year. Despite sluggish economic growth in much of the region, interest in Latin America’s most attractive basins, such as deepwater in Mexico and Brazil, and the Vaca Muerta shale play in Argentina, remains high.
Oil projects are going ahead, partly because state companies dominate the national landscape and also because the major projects in Latin America are complex and require five, ten, even twenty years to come together. Moreover some countries that depend on oil revenues, such as Colombia, have incentive to produce more to make up in volume for what they lose in price.
Another factor favoring Latin American upstream is that oil production is being hardest hit in Canada, home to the most expensive breakeven prices, and the US, where market factors are primary. This provides a comparative advantage to those nations that can still pump at current prices.
Finally, though the nature of the energy matrix is changing, oil demand will remain in place at least for the next few decades, according to the International Energy Agency (IEA), meaning longer term projects in Latin America will find offtakers.
Of course, there are serious consequences to the drop in prices, which the report assesses on a country-by-country basis. To access the first chapter click here.
Brazil: The Crisis Deepens
Mexico: Credit Picking up Slowly
Argentina: Banks Prepare for Adjustment
Chile: Portfolio Remains Steady
Colombia: 4G Driving Credit Demand
Peru: El Niño, an Unknown Factor
Venezuela: Conditions Deteriorate for Private Banks
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About BNamericas Intelligence Series
Focusing on emerging trends and forecasted prospects, the Intelligence Series works to identify opportunities for our clients in six leading sectors for Latin America. From an annual Industry Outlook to regular surveys of industry players to forecasts in each sector, as well as country and topical focuses, this product delves into the challenges faced and solutions developed in business practices for the region.
BNamericas delivers on-the-ground insight and trusted business intelligence to companies and investors active and entering Latin America. Identifying opportunities early-on and connecting clients with business contacts and decision-makers across 12 industries, BNamericas is the edge your company needs in Latin America.
In addition to project-focused news and data, as well as C-level conferences, BNamericas analyzes macro movements that affect everyday business and future developments, including social, political, economic, regulatory, technological, financial and labor-related coverage. Connecting our clients with trustworthy and timely insights, BNamericas has been shaping the development of Latin America for 19 years.
Committed to helping businesspeople make more informed decisions about their operations, investments and movements in the Latin American business world, BNamericas delivers clients field-proven business intelligence packages including daily sector news, project and company databases, monthly analysis, quarterly statistical reports, and executive-level networking events.