LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

December 9, 2025

How Will Rising Oil Demand Affect Latin America?

Oil demand will continue rising globally for another quarter century under current policies, the International Energy Agency said last month in a report. An oil derrick in Argentina is pictured. // File Photo: Natalia via Adobe Stock.

Q

A

Inés Elvira Vesga, partner at Holland & Knight in Bogotá: “An extended horizon for oil demand presents a significant shortterm economic opportunity for major regional producers like Brazil and Guyana, which are expanding offshore projects and attracting foreign investment, however, prolonged reliance on hydrocarbons risks entrenching structural economic vulnerabilities. This path may discourage necessary economic diversification, leaving national economies exposed to future oil price volatility and the inevitable shocks of global decarbonization efforts. Across the region, renewable energy adoption is growing but remains insufficient to offset long-term declines in fossil fuel income, underscoring the need for accelerated transition planning. In a business-as-usual scenario, warming is expected to amplify…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
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202.463.2920
gkuleta@thedialogue.org

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Diego Arria
Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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