Letter from South America: Ukraine crisis brings opportunities and costs
While the region’s crude producers stand to benefit from high prices, LNG importers will feel the pressure
Russia’s invasion of Ukraine has—probably more than any event apart from Covid—shown how interconnected the world is in the 21st century. And as we have seen, there are few industries more exposed to the volatility created by the conflict than oil and gas. The war also shows how reliant the world still is on hydrocarbons and highlights the nature of the industry’s low demand elasticity. The perceived threat to supply caused by sanctions—and potential sanctions—was enough to send prices soaring to heights not seen in the last 15 years. In Latin America, big oil producers such as Brazil will fill their coffers because of sustained higher prices. As the US, and even Europe, impose sanctions on
Also in this section
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy
15 April 2024
Though hampered by methane concerns, US LNG has a crucial role to play for European and Asian energy security, US economic needs and the energy transition drive