Latin America at forefront of energy markets
Argentina´s biggest oil and natural gas company, YPF, has recently announced a historic oil discovery in the Southern province of Neuquén. The finding includes 927 mm barrels of recoverable oil and natural gas, of which 741 mm barrels are shale oil.
Boom of Latin America´s oil activity has also been marked by the world´s biggest oil discovery in 30 years. The Brazilian firm, Petrobras, announced the finding of the largest light crude oil field since 1976 last year, which would produce up to 40 bn barrels of oil and provide South America´s top economy with the world´s eighth-largest oil and gas reserves.
Energy market analyst, Daniel Gerold, considers these findings to be significant news for the oil and gas business but warns that development and production challenges still remain ahead.
Mexico also made the headlines this year with an important offshore finding. Back in May, Mexican Pemex announced the discovery of a natural gas field in deep waters of the Gulf of Mexico with initial tests showing that the gas field holds an estimated 400 to 600 bn cf of reserves.
Despite some market reports ventured to compare Latin America's new oil-rich scenario with the huge reserves held by Middle East, Mr Gerold belittled such contrast and further explained the differences.
Huge oil findings in Latin America have placed the region at the forefront of energy markets. If new discoveries eventually bear fruit, the world´s oil map might look different in the near future.