Low Oil Price Impact on Latin American Non-Conventionals

摘要

This article discusses, from a historical perspective, previous oil price downfalls. Such a preliminary analysis will help garner a better understanding of the current low oil price situation and the implications for Latin America. As well, this article attempts to study the last three price downfalls over the last thirty years. We then turn our attention to the impact of those low prices on the developments of non-conventional oil developments such as deep waters, extra heavy oils, pre-salt and shale oil. In this regard, it is worth clarifying that "non-conventional oils" is a wide-open definition encompassing difficult plays to develop as well as shale developments. In other words, all plays other than conventional or light "easy fields" to develop.