Latin America is returning to the spotlight as a key player in global energy and resource security following the U.S.-backed coup of Venezuela's Nicolás Maduro and the continuing conflict in the Middle East, industry officials said this week at S&P Global's CERAWeek conference in Houston.
Latin America's abundant oil, natural gas and critical mineral resources are becoming increasingly important in the current geopolitical climate as a number of speakers pointed toward a shift from globalization to regionalization and predicted increased trade and collaboration between North and South America will help to play a large role in the changing global economy.
The closure of the Strait of Hormuz has highlighted the stability and safety of business operations in Latin America, Petrobras Chief Exploration and Production Officer Sylvia Anjos said. The overall price volatility seen over the last month isn't good for any business, but reaffirms the importance of a diverse energy slate, she added.
"We cannot preclude any kind of energy," Anjos said. "So oil and gas are very important, but we can do it very responsibly [and] take care of the environment [without] question. Petrobras invests billions in protecting the environment." Daniel Gonzalez, Argentina's vice minister of energy and mining, said the country is negotiating a once-in-a-generation cultural, economic and political shift, changing geopolitics and has its Vaca Muerta shale play primed for exploration and production.
Guyana's oil and gas sector is booming, said Vickram Bharrat, the country's minister of natural resources, with production exceeding 900,000 b/d and additional exploration and partnerships under way. He estimated Guyana's hydrocarbon output will rise to 1.7 million b/d by 2030.
Guyana's "unprecedented" 85% exploration success rate in deepwater drilling has been critical to growth, Bharrat added.
He said investors want to spend in countries where there is "stability, predictability, security," and have governments that establish policies and programs designed to attract foreign investment. "I think all will be following the developments in Guyana," he added He highlighted a 600-MW natural gas-fired generation project he said will reduce the cost of electricity by 50%, and reduce power generation emissions by 70%.
While Chevron remains the only major U.S. oil company operating in the country, Exxon Mobil employees are in Guyana assessing potential investments, said John Ardill, the company's vice president of global operation and new ventures.
While Argentina, Brazil and Guyana have a number of promising oil and natural gas opportunities, the countries also face some issues.
"I think our biggest challenge is that we have 20 years of doing things wrong," Gonzalez said. "It's easier to lose somebody's trust than to recover it and we are in the process of recovering the trust.
It is a challenge that our cost of capital is still high...and [while] we have very good local operators, they have a lot of food on their plates and maybe capital is going to be the biggest restriction in accelerating development of Vaca Muerta."
And Bharrat said Guyana's small population could limit growth in the country.
"A few months ago I would have said Venezuela is our biggest challenge, but the situation is much better now and we are happy about that," Bharrat said. "We have a very small population...having the persons with experience, who are certified and trained in the oil-and-gas industry has been a challenge to us."
And in Brazil, Anjos said supply chain costs and permitting remain issues for the oil-and-gas industry.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
Reporting by Bayan Raji, braji@opisnet.com; Editing by Jeffrey Barber,
jbarber@opisnet.com
(END) Dow Jones Newswires
March 27, 2026 11:20 ET (15:20 GMT)
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