Latin America is rapidly becoming a pivotal region for global oil production, with Brazil, Guyana, and Argentina set to contribute over half of the world's new crude supply in 2026. This shift is driven by a redirection of capital from major oil companies towards the Americas, partly influenced by geopolitical tensions in the Middle East. Consultancy Rystad Energy projects that Brazil, Guyana, Argentina, and Venezuela will account for about 44% of global crude supply growth between 2025 and 2030, adding nearly 2.5 million barrels per day.
Brazil is a key driver of this growth, with its average daily oil production expected to reach 4 million barrels in 2026, primarily from its pre-salt offshore fields. State oil company Petrobras's Búzios field alone has achieved a record 1.1 million barrels per day. Guyana, a relatively new player, has seen a 700% surge in its oil exports over the past five years, with daily production surpassing 918,000 barrels in February and expected to exceed 1 million barrels by year-end due to projects like ExxonMobil's Uaru. Argentina's Vaca Muerta shale formation is also contributing significantly, with daily oil production hitting a record 887,000 barrels in May, with unconventional shale accounting for 70.6% of the total.
Major oil companies are heavily investing in the region. ExxonMobil and its partners are rapidly developing Guyana's Stabroek Block, while BP is making Brazil a strategic hub, with the Bumerangue field holding an estimated 2.5 billion barrels of oil reserves and potential for 4.4 billion barrels. BP aims for the Americas to account for about 70% of its total global production by 2030. European majors like TotalEnergies and Shell are also increasing their presence and investments, with Shell acquiring Canadian producer ARC Resources for $16.4 billion to boost its North American shale output.
