In a partnership with FGV Center for Growth and Development, Konrad Adenauer Foundation and its Program for Latin America, Catavento promotes a debate about the Geopolitics of Oil & Gas in Latin America
The round table, that took place in October 2015, aimed to promote a debate around the aspects that influence the energy scenario in Latin America , with a focus in Oil & Gas. The event opening was conducted by Jorge Camargo, IBP (Brazilian Oil, Gas and Biofuels Institute)’s president, and Roberto Castello Branco, representing FGV Center for Growth and Development, with a macroeconomic approach. The event also hosted executives from the Konrad Adenauer Foundation, members of a German businnes delegation, and Oil & Gas specialists. The debate was moderated by Clarissa Lins, from Catavento.
In the opening, Jorge Camargo brought his experience from prospecting Oil & Gas business opportunities in Latin America for three decades, highlighting his vision regarding the businness environment – from geology aspects to institutional conditions – in the countries with largest production in the region, Mexico, Venezuela, Argentina and Brazil. If the situation in Venezuela is apparently the most critical in the region, there are still uncertainties regarding the success of the Mexican reform, since it started its bid offerings with areas not as valuable and atractive as those closer to the Gulf of Mexico. On the other side, there are big expectations regarding the development of unconventional reserves in the Vaca Muerta region, in Argentina, depending on the institutional context established by the government elected in november. In this context, the exploration and production potential of the Brazilian pre-salt region represents an asset able to atract the world’s best players, depending on the revision on the current conditions – such as local content and single operator- that limit more than help the sector’s development in Brazil.
Echoing the fact that the actual model is growth limiting and not propelling, Roberto Castello Branco explored the macroeconomic consequences of the oil price fluctuation. The German delegation brought up questions related to the existence of strategic reserves in Latin America, the role of renewable energy in the region and the influence of climate change in the resource allocation decisions of investors.
At the end of the debate, the conclusion was that there is no energy integration in Latin America and that the countries tend to compete instead of cooperate. Each country turns to its own reality and search for its energy potential, swinging between proteccionism and market opening to international players and investors.