South American Oil Capacity Could Surge by 2.1 Million Barrels Daily by 2035

South America is positioned to become a critical pillar of global energy supply over the next decade, with the potential to add 2.1 million barrels per day (bpd) to the market by 2035. This projection suggests a substantial shift in regional production capacity if economic conditions remain favorable. According to a recent analysis by Rystad Energy, this expansion is contingent on crude prices maintaining a threshold around $100 per barrel. Such pricing would provide the necessary incentive for operators to fast-track capital-intensive projects and expand infrastructure across the continent. The growth is expected to be distributed across several key nations. Brazil, Guyana, and Suriname are projected to contribute one million bpd over the next ten years, provided project timelines are accelerated. Additionally, Venezuela could potentially add 910,000 bpd during the same period, though this figure is strictly conditional upon the implementation of fiscal reforms and the lifting of international sanctions. Beyond these primary drivers, Argentina is also expected to see faster-than-anticipated expansion within the Vaca Muerta region. This combined growth would significantly alter the global supply landscape, potentially offsetting production declines elsewhere. For global energy markets, this potential supply surge represents a long-term bearish pressure on oil prices. Traders and policymakers will likely monitor the pace of investment in the Guyana-Suriname basin and the geopolitical status of Venezuela as primary indicators of whether this capacity will actually reach the market.