Crude oil production in South America is poised to reach a staggering nine million barrels per day (bpd) by the year 2030, according to new projections unveiled by a Norway-based energy research and business intelligence company. This surge in production is expected to be driven by the combined efforts of several key nations in the region, with Brazil leading the charge and Guyana and Argentina following closely behind, Rystad Energy said in a new report.
Brazil at the forefront, with its ongoing and ambitious development of pre-salt basins, is projected to achieve a staggering output of five million bpd by 2030. The pre-salt basins, known for their rich hydrocarbon reserves lying beneath layers of salt, have proven to be a game-changer for Brazil’s oil industry. This boost in production solidifies Brazil’s position as a major player in the global oil market.
Hot on Brazil’s heels, Guyana and Argentina are expected to secure second and third places in terms of crude oil production in the region, according to Rystad Energy. These two nations are set to be almost neck-and-neck, with projected contributions of 1.2 million bpd and 1.1 million bpd respectively.
For Argentina, the driving force behind its increased production lies in its robust Vaca Muerta shale reserves. By tapping into these substantial shale resources, Argentina aims to harness its energy potential and elevate its position as a formidable player in the South American oil landscape.
Meanwhile, Guyana’s rapid ascent in the oil production ranks has been nothing short of extraordinary. In a span of just over a decade, the nation is transitioning from having zero oil output in mid-2019 to becoming a key contributor with a projected output of 1.2 million bpd by 2030. Guyana’s production is driven by ExxonMobil which operates the offshore Stabroek Block with its 11 billion barrels of oil discovered. Exxon already has two projects online, a third being prepped for start-up this year, and a fourth and fifth under construction. And just recently, the company submitted environmental authorisation for its sixth development – Whiptail.
As South America collectively positions itself as a significant crude oil production hotspot, the global energy dynamics are bound to witness substantial shifts. This surge in production not only has the potential to bolster the economies of these nations but also reshape their geopolitical roles on the world stage.