Latin America Advisor

John Price, managing director of Americas Market Index: “Latin America’s greatest economic threat comes from fracking and other technologies that have turned America’s nimble oil patch into the global swing producer. Without cartel-like coordination, these hungry producers expand capacity every time pricing climbs above $65/barrel, sending it back down to the $45-55 range. Outside of Venezuela, most new Latin American oil capacity requires a steady floor price of $70 to attract investment. Until leaders in Brazil, Mexico, Colombia and Argentina can make their economies more competitive by bringing down taxes, improving infrastructure and simplifying regulations, their promising new oil reserves will stay in the ground. To add insult to injury, the rapid conversion of the United States from a natural gas importer to a massive exporter threatens the gas-driven economies of Trinidad and Tobago and Peru and further dampens enthusiasm for…”