2018 will be a pivotal year for energy in Latin America, as the
region’s top oil producers are set to hold presidential elections that
could lead to sweeping policy changes. Recent market-oriented energy
reforms in countries like Brazil and Mexico have increased investment
pledges, but the region is still seeing an overall oil production
decline.
The upcoming presidential elections could be decisive in advancing
policies to maintain oil revenues. However, in the current climate of
growing polarization and deeply unpopular incumbents in Latin America,
the elections are generating tremendous political uncertainty. Several
left-leaning candidates are against current oil policy but not for the
same reasons. Some oppose investor-friendly policies based on oil
nationalism; others contest the exploitation of energy resources on
environmental grounds.
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