This brief presents a concise overview of the context of the Latin
American oil industry and its performance. It analyses the advantages
and disadvantages of the three main investment models followed, focusing
primarily on the policy experience of Argentina, Brazil, Colombia, Peru,
and Venezuela. Finally, it presents evidence and analysis suggesting
that the state-private competitive model seems to have had the best
performance in the current regional context.
- The state-private model, with a dominant state role in an open market,
seems to be the most economically successful and politically stable
model in Latin America.
- For this model to be successful, however, governments need to directly
invest in the state oil company to improve its technical, financial
and institutional performance.
Damonte, G. ELLA Policy Brief: Oil Industry Investment Policies. ELLA, Practical Action Consulting, Lima, Peru (2011) 5 pp.