What Latin American Countries Are Backing Fracking? The Legal Landscape That Will Shape New Investment
Energy & Natural Resources attorney José Vicente Zapata was featured in a Bloomberg Línea article about the regional outlook for fracking in Latin America. The exploitation of unconventional energy sources through fracking has divided the area into countries where fracking is expressly permitted and regulated and jurisdictions that do not yet have rules for it. José Vicente observed that Argentina and Chile have achieved a "sustained and progressive fracking [development] under a clear regulatory framework," which contrasts Colombia, where although the process is not expressly prohibited, the suspension and cancellation of pilot projects has created uncertainty for investors and companies in the hydrocarbons sector. However, he told Bloomberg Línea, the region presents ample opportunities in energy security, job creation, industrial development and cross-border transactions.
"Latin America has seen how the discussion about fracking becomes politicized in the era of energy transition," he commented. "The existence of unresolved institutional tensions generates uncertainty for investment."