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
7 May 2025
From China blocking US LNG to Trump demanding that various countries import more of the fuel, the politicisation of LNG is on the rise
6 May 2025
Sino-US trade tensions could see crude consumption crumble despite recent buying behaviour
5 May 2025
The country is seeing a notable increase in petroleum product retail outlets, with private operators gaining market share