Research Library

After seven years of steady decline and an accumulated drop of 25%, Latin America’s crude oil production has recovered by more than 9% over the past two years, thanks to significant growth in Guyana and Brazil and smaller increases in Argentina and Venezuela. Francisco J. Monaldi walks us through these developments and what could be ahead for the region.

Osamah Alsayegh discusses how the recent Iran-Iraq gas deal and the reestablishment of Iran-Saudi Arabia relations signal increased regional cooperation in the Persian Gulf to tackle energy and water challenges, despite geopolitical pressures and U.S. opposition.

The Latin American does not stop with hydrocarbons: It extends into metals and minerals as well. The demand for critical minerals such as copper and lithium is projected to at least double by 2030. Tilsa Oré Mónago discusses the role of South America in responding to the growing demand for critical minerals in light of clean energy transition plans, as well as the challenges to be faced in doing so.

The link from resource endowment to profitability is intimately tied to the full supply chain. In the U.S., concern about market concentration in China is motivating policy intervention to reorient supply chains in the interest of energy and national security. This is not without its obstacles, however. Michelle Michot Foss discusses how new U.S. laws intersect with the challenges of aligning materials supply chains with green energy goals amid political and economic pressures.

Energy transitions also connect to developments in natural gas and oil markets, both of which still receive significant attention from policymakers. Steven R. Miles explains that despite numerous challenges, global reliance on liquefied natural gas (LNG) has continued to expand. Thus, future trends will be shaped by trade dynamics, geopolitical factors, regulations, and U.S. policies. LNG is important for the global energy balance, and increasing demand for natural gas means the long-term outlook for U.S. LNG exports remains bright, despite the recent LNG permitting pause by the U.S. Department of Energy.

Despite its uncertain future in the context of energy transitions, oil remains the largest global energy source, and oil markets will continue to demand attention in the near term given their economic and geopolitical impacts. Mark Finley discusses global oil production, demand, and implications.

Mahmoud A. El-Gamal discusses the importance of U.S. monetary policy changes and oil markets. He highlights the relationships among interest rate movements, the behavior of traders, and oil price formation to argue the importance of watching Federal Reserve actions when analyzing the market for oil.

Ken Medlock highlights the importance of supply chains and legacy infrastructures for the success of new technologies and stresses the role of coordination along supply chains to drive value. A holistic awareness of economics, politics, regulation, and resource scarcity is critical for developing market structures that support investment for effective decarbonization.

Emerging artificial intelligence (AI) tools could prove an important contributor to successfully decarbonizing energy. Christopher Bronk discusses how they can enhance our ability to process and understand extensive data streams in energy, policy, technology, and geopolitics, which could transform the way we process information and assess regional and global situations in real time.

Rachel A. Meidl discusses why sustainability requires an approach that includes environmental, social, and economic factors across the entire supply chain spanning the life cycle of energy systems. Sustainability must move beyond a narrow focus on carbon metrics to address broader impacts and drive innovation. As companies emphasize sustainability imperatives, life cycle management will become increasingly important.