Downturn hits Latin America’s upstream hard
Worsening economic conditions set to slash oil production growth in the region
The Opec+ collapse is leading to an unprecedented wave of crude hitting the market just as demand plunges due to the Covid-19 pandemic. Latin American government revenues will take a big hit because of the outsized role that oil and gas plays in regional economies. As elsewhere, companies active in the region have reacted quickly, making deep cuts to their capital spend plans for this year, with discretionary spend being pulled back wherever possible. Current oil prices may not be sustainable beyond the short-term, but the focus for companies is to minimise cash burn and protect their balance sheets. Production will be hit, and short-term shut-ins have already begun. Longer-term growth will
Also in this section
11 June 2025
Petroleum Economist analysis shows OPEC bringing back some barrels in May, but fewer than expected, while OPEC+ continues to see output fall
10 June 2025
The bloc may find it very difficult to replicate Japan’s approach due to fundamental differences in policy and the markets
10 June 2025
Scapegoating foreign buyers will not solve country’s gas shortages
10 June 2025
US gasoline consumption is at its highest level since before COVID, but while stocks remain healthy, the hurricane season threatens
