Entra Consulting and the Oil and Gas Industry in Latin America
Octuber 17, 2016
Latin America has the second largest reserves of hydrocarbons on the planet after the Middle East. Variations in price and demand, in addition to the highly politicized conditions of the region, have resulted in substantial changes in the regulatory frameworks of various Latin American countries.
In recent years, Brazil, Venezuela, Colombia, Mexico, and Ecuador have modified their energy laws according to a common constitutional principle of sovereignty over oil resources in the ground. Latin America is a region where different factors (political, social, legal, and economical) are coming together for what we could call the perfect storm for new structural, contractual, and business models for the transportation, storage, refining, exploration, and production of hydrocarbons. The Entra Consulting team understands and manages these factors, structuring the best and most efficient oil and gas transactions for its clients.
There is no doubt that, as a result of persistent fluctuations in oil prices, Latin America is experiencing the natural ups and downs of the oil industry with regard to investment. Obviously, when oil prices are low, there is less readiness to accept risk on the part of investors, along with more openness on the part of sovereign nations to increase production through legislative incentives.
Generally, when oil prices increase, nationalist regulation also increases. In boom times, investors take greater risks because they expect greater benefits, and sovereign nations enact more laws to obtain greater economic benefits for their people. Entra Consulting assists its clients in devising strategies to succeed by understanding these operational opportunities; following the regional regulatory legal frameworks; analyzing the new business trends; and using sophisticated resources to achieve unprecedented levels of efficiency, productivity, and quality.
Based on these dynamic regulatory frameworks, and in conjunction with the highly charged political environments and the Latin American nations’ need to increase production, the Entra Consulting team helps its clients manage new technology and change their traditional ways of doing business to make their oil transactions viable.
TThe industry uses many traditional models to facilitate the business of hydrocarbon transportation, storage, refining, exploration, and production. However, in Latin America, it is essential to structure energy projects in ways that bring innovation to traditional models, and the Entra Consulting team can guide its clients through these new, innovative models.
Entra Consulting’s analytical work is based on innovative models, taking into account the regulatory framework of each of the countries and considering operational elements such as business models, environmental compliance regulations, corporate responsibility, intellectual property, and anticorruption laws. These wide-ranging matters become vitally important in a globalized market where petroleum activity has considerable social, technological, economical, and environmental impacts.