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Latin America Oil Output Surges: Brazil, Argentina Lead
5 Feb
Summary
- Latin America's oil output expected to surpass 8.8 million bpd this year.
- Brazil and Argentina's shale investments are key growth drivers.
- Venezuela's recovery is uncertain due to political and business issues.
Latin America is poised for significant oil production growth, with Rystad Energy forecasting output to surpass 8.8 million barrels per day this year. Brazil is expected to lead this surge, closely followed by contributions from Argentina and Guyana. Their combined efforts are projected to add over 700,000 barrels per day in oil production in the current year.
Argentina's Vaca Muerte region is a focal point for shale investment, expected to near $11 billion this year, an increase from $9.4 billion in 2025. This investment is crucial for the region's overall growth. Meanwhile, Venezuela's oil industry recovery remains uncertain. Despite US encouragement for investment since the departure of Nicolás Maduro, political and business instability present persistent challenges.
Investment in Latin America's oil sector is anticipated to rise in 2026. This will concentrate on projects with high return potential, including new developments in Guyana and Suriname, and continued expansion in Argentina. The consulting firm predicts that Argentina, Guyana, and Brazil will outperform Venezuela in oil production through at least 2030.
