Oil Production in Latin America and the Russo-Ukrainian War (Part I)

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Latin America has almost one-fourth of the world’s oil reserves, although due to the socio-economic collapse of Venezuela, the main producer country, these reserves have been underused for a decade. Other countries, like Mexico and Brazil, are stable producers and exporters, but the ownership of their national oil companies is subject to heated political debates, while the discovery of new oil fields in Guyana might put this tiny country on the list of the biggest producers. This varied landscape of oil reserves and actual production may be changed fundamentally by the Western sanctions that were implemented against Russia as a consequence of its aggression against Ukraine. A quest for new sources of oil might end Venezuela’s isolation and provide lucrative business opportunities for the oil companies that operate in Latin America. However, a new boom of oil production would also raise environmental and social concerns. This analysis focuses on the factors listed above in order to present the shifts and possible pathways of oil production in Latin America in an economic and political climate shaped by the Russo-Ukrainian war. The first part provides a general introduction and presents the main producer country, Venezuela, while the second part offers an analytical overview of the other key oil producer countries in Latin America.