Central & South American oil & gas demand and production stable
London, 29th November 2018. In most regions of the world, oil & gas demand has risen or reached all-time highs in 2017, highlighting the significant need for investments to keep up production levels, IOGP’s new Global Production Report shows. In Central & South America, the challenge will be to remain self-sufficient as political turmoil continues and production plateaus.
“At the global level, we are facing a dual challenge: a strong demand for oil & gas, and a 6% depletion rate of existing fields. We need to work with policymakers to mobilize the resources needed to meet this demand on the long term.” says IOGP Executive Director, Gordon Ballard.
The IOGP Production Indicator© (PI) indicates the level at which a region is able to meet its own oil or gas demand – for seven regions across the world. A PI higher than 100% means the region produces more than it needs to meet its own requirements and can therefore export. For each regional section one of IOGP’s 80 members provided an expert view.
The political and economic situation in Venezuela continues to affect the region’s oil market. Brazil’s oil production however reached an all-time high, thanks to a unique potential underlined by Margareth Øvrum, Equinor’s Executive Vice President Development & Production in the country: “Brazil’s Santos and Campos basins also offers some of the most promising exploration acreage available to the industry on a global basis. We are very excited about the potential and look forward to participating actively in the efforts to unlock new oil and gas resources in these prolific basins.”
As for natural gas, the region has reached a production plateau, sustained by successes in Argentina’s shale and Brazil’s pre-salt formations.
“If proof were needed for the potential of gas production in the region, Argentina’s Vaca Muerta development is a prime example as it helped raise the nation’s gas production by 18% over the past four years. In Brazil, gas from offshore operations accounts for around 83% of national production. Production from the pre-salt geological formation reached 50% of total output and was the main driver for Brazil’s higher production” says Miguel Moyano, Upstream Director at ARPEL.
Access the IOGP Global Production Report here: https://www.iogp.org/production-report-2018/
The International Association of Oil & Gas Producers (IOGP) is the voice of the global upstream industry. Oil and gas continue to provide a significant proportion of the world’s energy to meet growing demands for heat, light and transport.
Our Members produce 40% of the world’s oil and gas. They operate in all producing regions: The Americas, Africa, Europe, the Middle East, the Caspian, Asia and Australia.
We serve industry regulators as a global partner for improving safety, environmental and social performance. We also act as a uniquely upstream forum in which our members identify and share knowledge and good practices to achieve improvements in health, safety, the environment, security and social responsibility.
The Regional Association of Oil, Gas and Biofuels Sector Companies in Latin America and the Caribbean (ARPEL) is a vehicle of cooperation and reciprocal assistance among sector companies. Its main purpose is to actively contribute to industry integration and competitive growth, and to sustainable energy development in the region.
Its membership currently represents a high percentage of the upstream and downstream activities in Latin America and the Caribbean. They embrace national and international operating companies, providers of technology, goods and services for the value chain, and national and international sector institutions.
We promote the integration, growth, operational excellence and effective socio-environmental performance of the industry in the region, facilitating cooperation with key stakeholders including society and governments.