AREAS OF OPPORTUNITY

Latin America is a region with a population of 594 million people, 20 countries and 5 languages. Its economy has grown sustainably in the last decade, with gross domestic product of more than 4.5 billion in 2013.

Despite the large number of countries of the continent, only a few (Brazil, Mexico, Argentina, Venezuela, Colombia and Chile) account for 91% of total GDP.

Over the next five years, according to the International Monetary Fund (IMF), the growth of the economy of Latin America will have a cumulative annual growth rate of 4.5%. GDP

The growth of energy demand in the GAGR be 2.2% until 2015. The overall energy matrix is basically based on:

LATIN AMERICA

Despite its vast reserves, Latin America has gradually doubled its dependence on the United States regarding the use of fuels (especially diesel and gasoline) in the last five years. This has led to stability in the economies on both sides. The network of refineries has not been updated to add more capabilities to the growing demand for oil, which has exploded across the region. The refined fuels dependence of Latin America to the United States grows while falling US dependence on foreign oil imports. This is due to the unprecedented boom in domestic production and falling demand. Of the 12 Latin American countries are the biggest importers of fuel have been imported and consumed an average of 1.6 billion barrels per day in 2013, twice consumed in 2008. This is presented by the agency Energy Information Administration of the United States.

In addition, investment in fuel imports for the 12 countries was about $ 65 million in 2012 to eating spot price to about 6% of its revenue from import was up 3% in 2008. The rise was caused by the rise of fuel demand from new power generation facilities that burn diesel for new car sales in some countries that grew in double-digit annual rates. On the other hand, it is expected to fuel demand in Latin America could reach 9 to 10 million bpd in 2010. It prospects to increase from 2 to 2.2% per year over the next seven years, according to the EIA. The growth in global demand, by region, could be faster as growth in Asia and the Middle East. Any new demand in Latin America must be met by imports, as the region lacks refining capacity surplus.

EXPLORATION & PRODUCTION

The region currently produces more than 10 million bpd and 204 billion m3 of gas; also it is expected to reach 12.4 million barrels and 237 billion in 2015. Brazil is the technology leader. Petrobras and its international partners are in a process to produce what could amount to 100 billion barrels of recoverable oil of recent discoveries. Colombia has been working to create a healthy climate and open its enormous potential for international companies with over a decade long effort to establish peace and stability under a new regulatory framework. Instead, the Energy Reform in Mexico will create great opportunities in the region with more than 10 billion barrels of recoverable reserves. Thanks to its strategic geographical position and its new regulations, investments of over 50 billion dollars over the next 7 years is expected. The Gulf of Mexico offshore offers the greatest benefits to the United States. Federal authorities estimate that up to 15 billion barrels of recoverable oil yet to be discovered in deep waters. Moreover, Venezuela has regained visibility regarding its production, which comes to about 1.2 billion barrels of oil reserves. National and international companies are investing heavily to get a place in the immense deposits. Argentina has one of the largest sources of unconventional resources in the world. The Energy Information Administration (EIA, for its acronym in English) of the United States, published a report which indicates that this country could contain up to 774 trillion cubic feet of recoverable shale gas, so that several international companies have established comprehensive land package for the region. For production growth in the future, where oil demand of 8.4 million bpd seen in 2010, is projected to increase to 9.5 million bpd by 2015; gas consumption was 16 billion cubic feet in 2010, so the growth is expected to be 20 billion by 2050.

PETROCHEMISTRY


The main markets for petrochemicals consumption are Brazil, Argentina, Mexico and Colombia. In the next five years it is expected that growth in demand for most of olefins with investments and plant expansions. Brazil is building a complex with an investment of about US $ 6.5 billion. These investments contemplate expansion into Argentina, with new plants laboratory; in Peru, through ethylene and polyethylene; and a plant in Mexico ethyl benzene.




PIPELINES

Due to the geographical barriers national rivalries and large distances between populations centers, however Latin America does not poses a continent widely integrated energy pipeline network similar to North America. Mexico in one of the biggest industrial ventures on the continent in decades TRANS CANADA CORP. Plans to begin a series of natural gas pipelines projects, more than 1.4 billion us dollars, the new pipeline will be operational by 2016, Mexico’s government is engage in a plan to expand national electrical grid. Net midstream is building 124 miles gas pipeline from Agua Dulce Hub in Nueces County in Texas to the Mexican Border in order to supply PEMEX with 4.2 billion ft3 the gas will be sourced from the eagle forth play. The CFE also contracted TRANSCANADA to build own and operate the EL ENCINO TOPOLOBAMBO pipeline. The US 1 billion line will carry up to 670 million ft3 from Chihuahua state to Sinaloa 530 km line will service by 2016. Brazil offshore Sapinhoa field is a 300 million ft3 gas line , the 216 km line starts a 2,145m below the sea level and ends at a production platforms in shallows waters off Rio de Janeiro. Argentina opened bidding on a gas pipe line at Northeast of Argentina and will connect remote Northeastern provinces that rely on more expensive fuels.

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