Within Latin America, Brazil leads crude oil production with over 3.3 million barrels per day, attributed primarily to its deepwater and ultra-deepwater pre-salt reserves managed by Petrobras. Brazil is projected to increase its output to approximately 5.5 mbd by 2026, solidifying its role as a global energy supplier. Guyana’s rapid expansion, powered by ExxonMobil-operated projects, is also vital, collectively contributing nearly 1.6 mbd of new capacity between 2025 and 2026. This growth compensates for declines in other global regions. Argentina and Peru contribute to the regional supply landscape, with Argentina showing economic improvement tied to energy policies, and Peru maintaining steady yet lower production levels with modernizations in refining capacity.
However, OPEC stresses that meeting rising demand requires cumulative investment estimated at $18.2 trillion in exploration and production between 2025 and 2050. Insufficient investment risks supply deficits and market instability. Latin American governments continue to rely heavily on oil revenues, which form a significant portion of fiscal income and export earnings, particularly in Brazil and Venezuela. Venezuela holds the largest proven oil reserves worldwide, at over 303 billion barrels, surpassing Saudi Arabia, though challenges in infrastructure, technology, and governance impede full extraction potential.
The global oil market in 2025–2026 is expected to experience abundant supply with moderated demand growth, resulting in structural oversupply driven largely by Latin American upstream expansion and investments. The transport sector remains the dominant oil consumer, sustaining the global crude market’s vibrancy. Latin America’s role as both a producer and internal consumer underscores its strategic relevance amid global energy shifts and economic growth dynamics.
This article was curated and published as part of our South American energy market coverage.
