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BNamericas oil survey 2016: Mexico, Argentina emerge clear winners

Bnamericas Published: Thursday, February 04, 2016
BNamericas oil survey 2016: Mexico, Argentina emerge clear winners

Mexico and Argentina emerged as the clear winners in the BNamericas Oil and Gas Survey 2016.

Predictably, the results paint a grim picture of the industry amid the most severe global oil downturn in decades.

But they also reveal a massive shift in terms of investor appetite in the region. When BNamericas first conducted the survey, in 2012, the favorite jurisdictions were Brazil, Colombia and Peru, in that order.

Today the top three are Mexico, Argentina and Colombia.

Mexico's energy reforms and cheap drilling costs have proven enticing for E&P firms, while Argentina's Vaca Muerta shale play and subsidies for drillers have attracted majors including Chevron, ExxonMobil, Dow Chemical, Shell and Petronas.

Additionally, the election of pro-business President Mauricio Macri has signaled a shift toward the light for investment in the country.

With regard to natural gas, 42% of respondents said that LNG import projects were too expensive, while 31% said they are the most cost-effective way of securing necessary energy supplies, as the region's power grids shift toward gas-fired generation.

These figures compare to 30% and 38%, respectively, in 2015.

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UPCOMING BNAMERICAS EVENTS

4TH Mexico Electric Power Summit

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5TH Mexico Infrastructure Summit

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4TH Mexico Oil & Gas Summit

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