IEA forecasts increase in global oil production, led by three Latin American countries

The International Energy Agency (IEA) estimates that oil demand will continue to rise. In this context, production is expected to continue at this upward pace, reaching 5.8 million barrels per day, with a quarter coming from Argentina, Brazil, and Guyana.

According to the agency, global oil production will increase this decade due to demand for the product, “although it may seem counterintuitive in the midst of the climate change crisis affecting the world.”

In this oil boom, countries like Venezuela, Ecuador, Mexico, and Colombia would be displaced by other emerging countries: Brazil, Guyana, and, to a lesser extent, Argentina, which are emerging as leaders in “a new chapter in the region’s oil production.”

In Guyana’s case, it entered the oil market in 2015, when “the US oil giant ExxonMobil discovered the first of its proven crude oil reserves, estimated at around 11 billion barrels, in the depths of the Atlantic Ocean.” According to the IEA, the country, once the poorest in the region, would surpass Kuwait.

For its part, Brazil is also gaining strength from underwater discoveries. “Under three kilometers of water and five more kilometers of rock and salt, the country extracts crude oil from one of the largest offshore oil fields in the world.” These discoveries made the country the largest oil producer in Latin America in 2017.

According to the IEA, Argentina would rank third in the new regional oil boom, taking into account the gigantic Vaca Muerta field in the northwest of the country, which has the “second-largest shale gas resources in the world and the fourth-largest shale oil resources.”

M.Pino

Source: sela.org

(Reference image source: kinya jones on Unsplash)

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