Oil industry in Latin America - statistics & facts
Latin America is the second largest region in terms of proved oil reserves. These oil reserves are primarily located in Venezuela’s Orinoco Belt. However, despite playing an important role in the global market and the economy of countries like Brazil, Mexico, and Venezuela, the oil industry in Latin America has seen better days. In 2023, it accounted for less than eight percent of oil production worldwide, a share which has been in consistent decline over the past decade.
Even more critical, oil production in Venezuela has declined by more than 80 percent in the past ten years. In fact, the once oil titan has recently lost its long-standing position amongst the top three Latin American oil producers, surpassed by Colombia. In addition, increasing economic sanctions have had a negative impact in the country’s oil exports, especially to the U.S. Compared to other crudes in the OPEC reference basket, Venezuela’s Merey is among the most low-priced oils due to its heavy grade.
Brazil: the new oil giant
Brazil is by far the leading crude oil producer in the region. After the discovery and early exploitation of deep offshore reserves known as pre-salt between 2010 and 2014, Brazil's annual oil production has since experienced a mostly upward trend. In 2023, it reached a new peak of 3.5 million barrels per day. Petrobras, the national oil corporation, is not only the largest in the region, but was also one of the most profitable oil and gas companies in the world as of 2024.Mexico and Venezuela: former leaders in crisis
Meanwhile, Mexico faces a different situation, in spite of ranking second in Latin America and eleventh in the world in terms of crude oil production. Pemex, the state-owned company which once had exclusive rights over oil production and distribution in the country, has experienced a major production crisis in the past few years. Since 2004, the company’s crude oil output has nearly halved, remaining below two million barrels per day.Even more critical, oil production in Venezuela has declined by more than 80 percent in the past ten years. In fact, the once oil titan has recently lost its long-standing position amongst the top three Latin American oil producers, surpassed by Colombia. In addition, increasing economic sanctions have had a negative impact in the country’s oil exports, especially to the U.S. Compared to other crudes in the OPEC reference basket, Venezuela’s Merey is among the most low-priced oils due to its heavy grade.
