14 November 2022

PRODUCTION POTENTIAL IN LATIN AMERICA, KEY TO THE GLOBAL ENERGY TRANSITION

  • Progress and results in the oil and gas industry in Brazil, Argentina, Colombia, Guyana and Suriname position Latin America as a potential key player in a global energy transformation marked by climate change mitigation and the need to meet the growing demand for accessible, secure and sustainable energy.

    "Driving the transformation of the oil and gas sector in the Region" is the central theme of the sixth edition of the face-to-face ARPEL 2022 Conference, organized by the Association of Oil, Gas and Renewable Energy Companies of Latin America and the Caribbean.

    On its opening day, the event brought together more than 500 leaders of the continental energy sector who gathered in Lima, Peru, to project the industry at a time of energy transitions and new risk dynamics.

    The first Remarkable Talk set the tone for the high level of the event. Daniel Yergin, Vice-President of S&P Global, and one of the most renowned energy analysts in the world, was in charge of laying the foundations for the following two days of intense sector analysis.

    According to the American speaker and Pulitzer Prize winner for the bestseller "The Prize", the oil and gas industry has a role to play in an energy transition in which it was assumed that the future was eminently renewable.

    "Every energy transition takes more than a century, despite the fact that many say it will take 25 years," said the expert. In this sense, Yergin considered that oil and gas continue to be decisive for world energy security, especially because 80% of the energy produced comes from hydrocarbons.

    In this scenario, the challenge for the sector and its companies, both in the world and in Latin America, is to decarbonize and transform into energy companies, as well as to adapt to a new configuration of the geopolitical energy map.

    “What is the role of Latin America in this future?” And “How fast will this transition be?” were two of the questions that ARPEL's Executive Secretary, Carlos Garibaldi, asked as moderator of the conversation. In response, Yergin said that the region definitely has potential and productive capacity. Brazil, Argentina, Colombia, Guyana and Suriname have taken very important steps. However, he emphasized that the continent needs to create sectoral policies that promote energy transformation and provide a fundamental aspect for investors: certainty.

    Diversity, Inclusion and Gender in the Oil & Gas industry was another of the topics that marked the first day of the ARPEL Conference. A three-session workshop, with the participation of senior executives from the World Petroleum Council, Boston Consulting Group, International Finance Corporation and representatives from companies such as Ecopetrol, SLB and Peru LNG, among others, provided an analysis of the challenges to close the gap and promote gender equality in an industry where women occupy only 22% of the working positions.

    "It is essential that senior management understands that this is an important issue for companies," said the President of the World Petroleum Council, Pedro Mirás.

    The members of the panels agreed that the road to inclusion is difficult, but that it is key to attracting and retaining female talent, which has a predominant place in the ARPEL 2022 Conference, since nearly 40% of the speakers on the agenda are women.

    The Opening Ceremony was attended by the Vice-Minister of Hydrocarbons of Peru, José Martín Dávila Pérez, who was in charge of officially opening the Conference and praised the fact that it has been declared a national priority for the Ministry of Energy and Mines of Peru.

    In turn, the Vice-Chairman of Petroperu's Board of Directors, Carlos Vives, highlighted the fact that the ARPEL Conference will guide the sectorial conversation towards the energy transition. "The volatility of raw material costs, the slowdown, the impact of the war between Russia and Ukraine, have been factors that have impacted the sector and demanded efficient but, above all, innovative proposals", he said.

    ANCAP TAKES OVER ARPEL'S BOARD OF DIRECTORS

    It was an excellent occasion to introduce Alejandro Stipanicic, President of ANCAP, as the new Chairman of ARPEL's Board of Directors, who highlighted the fact that the energy transition is accelerated and uncertain, and places the sector at the crossroads of generating accessible, reliable and sustainable energy, which requires the companies in the sector to act responsibly. In this context, "ARPEL has a leading role, demonstrating best practices and generating knowledge to share with society," he said.

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