The Huge Risk Facing Latin American Oil Companies

By Luisa Palacios, Francisco Monaldi

The region’s big energy firms are mostly lagging in the transition away from fossil fuels. More can be done.

Oil and gas prices are at multi-year highs — for now. But with a rash of net-zero pledges from oil-producing and oil-consuming nations alike coming from COP26 negotiations in Glasgow, the future of Latin America’s oil industry is in jeopardy. The region’s national oil companies, especially in a few laggard countries like Venezuela and Mexico, must act quickly or be left behind by the global energy transition, with grim consequences for national economies. It’s unclear how long the process of decarbonization in the world energy market will take, but what is clear is the threat it...

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