Follow on Google News News By Tag * Central * America * Oil Market * Forecasts * 2015 * Huge * Offshore * Drive * Investment * Opportunities * Market Research * More Tags... Industry News News By Place Country(s) Industry News
Follow on Google News |  The Future of the South and Central America Oil Market, Forecasts and Trends to 2015New Report on "The Future of the South and Central America Oil Market, Forecasts and Trends to 2015" added in Visionshopsters
By: Visionshopsters http://www.visionshopsters.com/ Presence Of Huge Reserves In South And Central American Region Will Drive The Growth Of The Exploration And Production Sector The huge proved oil and gas reserves in South and Central America and its potential have made the region a lucrative investment destination for global oil and gas majors. The vast heavy oil reserves in Venezuela, the huge sub-salt finds in Brazil and the increasing number of discoveries in Colombia has reinforced the huge potential of the region. The region accounted for approximately 14% of the global oil and gas reserves and about 12% of the total oil and gas production in 2009. Consequently, with an expected increase in oil and gas reserves in the region and increased E&P activities, the share of this region in the global oil and gas supply is expected to increase in the coming years. South and Central America, % of Global Reserves and Production, 2009 National Oil Companies Are Expected To Continue To Dominate The Exploration And Production And Pipeline Industry In The South And Central American Region National Oil Companies (NOCs) dominate the upstream sector in Mexico, Brazil and Venezuela, with these three countries together accounting for approximately 91% of the total oil and gas reserves in the region. NOCs in these countries account for over 90% of the oil production in each country. The NOCs in Colombia and Ecuador also accounted for more than 50% of the total oil produced. NOCs will continue to dominate the energy sector in their respective countries with support from their national governments. Major South and Central American countries help them to dominate the upstream sector. South and Central America, % Share of National Oil Companies in Production, by Country, 2009 Similarly, the South and Central American NOCs have played a key role in the development of the pipeline sector of their respective countries. Almost all of the major crude oil pipeline networks in the region are owned by NOCs. Among the South and Central American countries, Mexico has the largest network of oil pipelines. The entire network is operated by the NOC Pemex. In Colombia, Ecopetrol operates the entire oil pipeline network, except for the Oleoducto de los Llanos Orientales (ODL) pipeline in which it has a 65% stake. In Brazil, the entire network is owned by Transpetro S.A, Petrobras’s subsidiary. In Venezuela, PDVSA is the operator or owns a stake in all the pipeline systems controlling oil transportation system in the country. In Colombia, although companies like Repsol, Perenco, Petrobras and others have stakes in some pipelines, the majority of the system remains under the control of Ecopetrol. With the increase in the interest in resource nationalization in the South and Central American region, the domination of the NOCs over the crude oil pipelines is expected to continue in the future. Resource Nationalization Acting As A Key Barrier For International Oil And Gas Companies In The South And Central American Region Resource nationalization has been a major concern for international oil companies (IOCs) operating in resource rich countries. After resource nationalization in major Middle Eastern countries in 1970s, the past few years have witnessed the same trend in the Latin American countries. With South and Central America witnessing significant growth in its hydrocarbon resources, the fear of encroachment on its oil and gas assets by foreign companies has lead to a new surge of resource nationalization in the region. Governments prefer domestic oil companies to be in charge of the oil and gas resources in their country in order to keep control of a major share. The fiscal terms in all major oil and gas resource holding countries in the region promote the dominance of domestic NOCs in the energy sector, especially in the upstream sector. In Mexico, Pemex is the sole operator in the upstream sector. The company owns and operates all the oil and gas reserves in the country. Venezuela has been the forerunner in the nationalization of oil and gas resources. The Venezuelan President Hugo Chavez ordered nationalization in 2007, claiming the majority share in multi-billion dollar oil projects. Though the country re-invited foreign companies in 2009, in all the new projects signed PDVSA will have a minimum 60% share. Even Brazil, which traditionally had quite favorable fiscal terms, is expected to come up with new legislation that will allow only Petrobras to operate in the lucrative pre-salt areas. The dependence on oil revenues for public spending and the eagerness to keep a larger share of oil and gas revenues in the country has motivated the South and Central American countries to promote their NOCs and allow them to play prominent roles in their countries’ upstream sectors. This policy paves the way for these NOCs to continue to hold a large part of the oil and gas reserves and to play a vital role in supplying world energy needs in the future." To know more about this report & to buy a copy please visit : http://www.visionshopsters.com/ Contact us: Visionshopsters Ph : 91-22-40583000 Emailid: marketing@visionshopsters.com Website : www.visionshopsters.com # # # We expertise in providing comprehensive collection of online market research reports, events, seminars bookings, country reports, company profiles, latest books and magazines, customized research services offering informative solutions worldwide. End
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||
