What Lies Ahead for Latin America's Energy Sector?
Energy Partner José Zapata was interviewed by The Dialogue's Energy Advisor about the 2021 outlook for the energy sector in Latin America and the Caribbean. Falling oil prices and decreased demand during pandemic-related lockdowns contributed to a volatile year for oil-producing and oil-exporting countries in 2020, but Mr. Zapata explained that some recovery can be expected in the next year. He also commented on the continued progress of the energy transition toward renewables.
"Demand will likely increase due to the resumption of activities in the transportation sector, particularly in the airline industry, which has also been affected by the 2020 mobility restrictions. This scenario will make it necessary to increase production," he explained. "...Latin America's contribution will allow for limited recovery from the crises that affected the industry in 2020, especially low demand and low international oil prices. There is cause for optimism about a sustained long-term economic recovery, as long as generalized quarantines are not declared. The region's energy transition is expected to continue to move forward, but to do so in parallel with the development of the mining and oil and gas industries, since the energy supply needs to remain stable."