Page 60: of Offshore Engineer Magazine (Apr/May 2015)

59 61

Spotlight

Latin America on Latin America

Heather Saucier examines the efect of regional energy policies on Latin America’s rich untapped resources, estimated to be some 126 billion bo and 679 Tcf of natural gas, a large majority of which is ofshore.

n its latest assessment of undis- covered, conventional oil and gas

I resources in South America and the

Caribbean, the US Geological Survey (USGS) released attractive numbers.

Of an estimated means of 126 billion bo and 679 Tcf of natural gas in 31 geologic provinces, a large majority is offshore.

“I think those numbers are rather substantial,” said Christopher Schenk, a

Denver-based geologist who has overseen the USGS’ South American and Caribbean assessments for nearly 20 years, including its most recent 2012 assessment. “The big resources there are offshore.”

But are they worth anything?

Pleistocene eolianite on the coast of Cancun, Quintana Roo, Mexico.

Photo by Christopher Schenk of the US Geological Survey.

“All those resources are of no value drilling has been done there.” unless the countries in which they are being tapped out – containing a means content requirements. located have energy policies and invest- The North Cuba Basin of the

Piñon – who runs a program that encour- of 14.7 and 59.7 billion bo undiscovered, ment models that allow international Greater Antilles Deformed Belt ages consistent fscal policies in coun- respectively. oil companies to come in and monetize also holds promise with an tries that ironically need their resources

Hiding in the shadows is the under- those resources,” said Jorge Piñon, direc- estimated mean of 4.7 billion bo exploited the most – is working to pave explored Guyana-Suriname Basin off tor of the Latin America and Caribbean undiscovered.

Although Colombia is most a smoother path for both host

Energy Program of the Jackson the north coast of South America and known for its onshore resources, countries and operators. If dealt

School of Geosciences at the estimated to contain a healthy mean of an estimated mean of 2.4 Tcf of a fair deck, third party investors

University of Texas at Austin. 13.6 billion bo. It is trailed by another undiscovered natural gas lies could bring millions of people “The geologist fnds the oil, but underexplored basin, the Falklands, with in the Guajira Basin, Schenk long-term security and improved the petroleum engineers have an estimated mean of 5.3 billion bo. added. “A lot of companies feel quality of life, he said. to come and get it out. The only “All along we’ve been saying there is that oil is more economical than way to be successful is to work potential in the Falklands,” Schenk said,

Resources galore gas, but gas is becoming more within an investment model likening the basin to offshore French economical around the world.” that allows them to do their Next to offshore areas in the Guiana, which went underexplored

Jorge Piñon for years until 2011 when Tullow Oil Arctic and East Africa, offshore work.” Venezuela, in partnership

Some operators – such as BG Group, South America and the Caribbean could announced a discovery of 236ft of net oil

Statoil, BP, Chevron and Royal Dutch be the most hydrocarbon rich, yet under- pay from its Zaedyus exploration well.

Locations of 10 priority geologic

The virtually untouched Salado-Punta

Shell – are managing to make offshore explored areas on the globe. provinces of Mexico, Guatemala, and Belize assessed in 2012 by del Este Basin, which is farther south plays economically viable despite the For the past several years, Brazil’s the US Geological Survey for down the Brazilian coast and does not moving targets of some countries’ energy Campos and Santos basins have been the undiscovered, conventional oil contain salt structures, is estimated to con- policies, which can change agreements hottest subsalt plays for offshore devel- and gas resources. tain a mean of 2 billion bo undiscovered. mid-game regarding royalties, taxes, opment on the continent. Yet, according

Courtesy of the US Geological Survey.

“It has potential,” Schenk said. “Very little repatriation of dividends and local to USGS estimates, they are far from

April 2015 | OE oedigital.com 62 000_OE0415_Geofocus1_Heather.indd 62 3/23/15 2:42 PM