Sproule ERCE News
Latin America Energy Balance 2025: A Year of Evolution and Regional Rebalancing
2025 is now behind us, and this is a good time to summarize the main developments in the energy sector in Latin America. Throughout the year, the region recorded significant progress in infrastructure, regulation, strategic mining, energy security, and diversification of sources. In several countries, moreover, the energy transition ceased to be just a planning agenda and became more clearly integrated into the day-to-day operations of companies and governments.
1. A year of adjustments, regulation, and consolidation
2025 was marked by the expansion of renewable energies, the strengthening of natural gas, greater offshore activity, the repositioning of the mining sector, and an intense regulatory agenda.
In this context, different countries reviewed tenders, tariff frameworks, transmission rules, environmental licensing processes, and exploration frameworks, seeking a balance between energy transition, competitiveness, and fiscal stability.
2. Argentina: Vaca Muerta strengthens its regional role
Vaca Muerta once again consolidated itself as one of the most important energy pillars in Latin America during 2025. The basin reached productivity levels that place it among the most competitive unconventional developments in the world. This year, four main dynamics stood out:
Greater operational efficiency: Operators achieved significant advances in drilling and completion, reducing times and standardizing practices that improved production profiles and unit costs.
Growing integration of the industrial ecosystem: Local suppliers expanded their technical capabilities, strengthening logistics chains and reducing dependence on imports.
Greater commercial and contractual discipline: More stable agreements with industrial clients and generators made it possible to plan with greater predictability.
Consolidation of the midstream network: The Perito Francisco Pascasio Moreno Gas Pipeline operated with greater reliability during the year, strengthening supply in northern Argentina and supporting regional export flows, especially to Chile and, to a lesser extent, to Brazil.
Vaca Muerta closed 2025 as one of the most robust energy hubs in the hemisphere.
3. Colombia: gas, mature fields and new diversification routes
Natural gas security remained at the center of Colombia’s energy debate. The reduction in reserves spurred discussions on offshore exploration, LNG imports, and strategies to extend the useful life of existing fields.
Mature fields provided stability through enhanced recovery, completion optimization, and operational digitalization.
At the regulatory level, the country made progress on regulations for renewables, transmission, and environmental permitting.
A highlight of the year was the growing momentum of geothermal energy, driven by government guidelines, pilots in volcanic areas, and studies by the Colombian Geological Service, which consolidated a complementary resource for a more diversified power generation mix. In addition, preliminary studies of CO₂ storage were maintained in basins with favorable infrastructure.
4. Brazil: gas, pre-salt, renewables, and regulation in the region’s largest market
Brazil once again showed in 2025 why it is the most influential energy market in Latin America.
In offshore, the pre-salt confirmed its efficiency and competitiveness with new developments and the modernization of Petrobras.
In natural gas, the progress of the Novo Mercado de Gás made it possible to expand competition and create additional room for private investment.
In electricity, the country maintained strong solar and wind expansion, along with regulatory adjustments in transmission and initial guidelines for offshore wind. The climate agenda moved forward on carbon markets, advanced biofuels, and low-emission hydrogen.
5. Mexico: reactivation of the oil and gas sector, electricity and the new energy geography of the north
The current administration has made an effort to soften the decline in hydrocarbons production, increase Pemex’s collaboration with the private sector through Mixed Contract schemes, and reduce the NOC’s debts with suppliers. One of the central technical debates in O&G was underground natural gas storage, which is key to resilience and reliability.
Geothermal energy remained present through the modernization and evaluation of fields such as Cerro Prieto, Los Azufres, Los Humeros and Las Tres Vírgenes, reinforcing its role as a firm resource to support industrial demand in the north. Likewise, some new geothermal concessions were awarded.
The states of Nuevo León, Coahuila, and Tamaulipas stood out for: accelerated growth of solar and wind energy, targeted modernization of transmission lines, and hybrid schemes for industrial supply.
In electricity, industrial pressure accelerated the approval of permits for renewables, battery storage, and selective grid reinforcements by CFE.
6. Peru and Chile: critical mining, regulation and mature field operators
Peru
The operators of mature fields in Talara and on the northern coast sustained production through secondary recovery and the modernization of surface facilities. Gas from Camisea maintained its strategic role.
Chile
Progress was made on the National Lithium Strategy, along with adjustments in transmission and clearer signals to accelerate renewables. Early options for CO₂ storage in mining industrial hubs were also explored.
7. Uruguay and Bolivia: clean energy and structural challenges
Uruguay
With one of the cleanest power matrices in the world, Uruguay maintained a solid combination of wind, solar, and biomass energy, in addition to pilot green hydrogen projects and offshore potential assessment in its early stages.
Bolivia
The energy debate focused on the structural decline in gas reserves and the decrease in exports, highlighting the need for a new exploratory cycle to sustain its role in regional gas geopolitics.
8. Offshore LATAM: production, regulation, and a new prominent player
Guyana (one of the world’s leading offshore producers)
Guyana was one of the most outstanding highlights of the year. With new FPSOs, contractual stability, and exceptional exploration results, the country consolidated its position as one of the leading offshore producers worldwide, redefining the energy dynamics of the South Atlantic. In 2025, Guyana became the world’s largest oil producer per capita.
Brazil
Consolidated new developments in the pre-salt with outstanding efficiency.
Suriname
It made progress in regulatory and technical confirmations toward future developments.
Mexico
It maintained technical activity in deep waters, with greater energy dynamism coming from the industrial north.
9. Three lessons from 2025
Regulation weighed as much as infrastructure.
Markets with clear frameworks moved faster in investment and execution.
Critical mining strengthened Andean competitiveness.
Chile and Peru consolidated their role within global electrification.
Energy diversification began to take concrete shape, without displacing oil & gas.
2025 brought more solar, wind, and geothermal projects, natural gas storage studies, and greater industrial integration with clean energy; but it also confirmed that oil & gas continues to be an energy and fiscal pillar in Latin America, especially due to its role in supply security, industrial competitiveness, and foreign currency generation.
Overall, 2025 left a region more aware of its energy dependence, but also more active in planning and diversification. The advances in supply security, industrial competitiveness, and technological transition reflect a more mature sector with a long-term focus.
From a technical standpoint, the year highlighted the importance of integrating subsurface, infrastructure, power grid, and regulation into the same strategic conversation.
2025 is ending, but 2026 brings ambitious and exciting goals for strengthening the Latin American energy sector.
Alvaro Serna, Regional Manager, Business Development
Alvaro Serna is Regional Manager, Business Development at Sproule ERCE and he brings over two decades of experience leading high-impact development and growth initiatives across the energy value chain. Alvaro combines deep reservoir expertise with a forward-looking vision to advance the energy transition and create sustainable value.