The Production And Export Of Oil In South America

uth America, the economies of several countriesSince most countries prefer to control their own
depend on the production and export of oil. Venezuela,finances, having the oil on hand makes it easier to do
the largest oil producer of any country in Southso. By not having to rely on imported oil, the countries
America, produces about 2.8 million barrels a day. Thiscan manage their own money. This makes oil an
puts it in the number eight position in the world of oilespecially valuable resource.
producers.Oil, or petroleum, the raw material that is pumped from
South American oil also comes from other countriesthe ground, accounts for 2/5ths of the energy needs
like Brazil that produces about 1.1 million barrels of oil aaround the world. There are also many products such
day. There are other oil producing countries in Southas plastics and asphalt that use petroleum as a raw
America, but they do not produce enough to beproduct. Therefore, the discovery of oil in South
ranked in the top twenty, internationally.America was of paramount importance to the
Just because some of the South American countrieseconomy of its oil producing countries. South
do not produce enough oil to be ranked internationally,America’s oil puts these countries in the position
oil is still a vital part of their economies. Benefiting inof competing on the world stage financially.
two separate but important ways, the countries haveBolivia Coastal®, located in Venezuela, and
oil readily available. Two examples of this areMarlim®, in Campos, Brazil have 30 million and 10
Paraguay and Bolivia, where there was recently foundbillion barrels of oil in reserve, respectively. These are
oil, but specialists are investigating if it is profitable andtwo of the larger oil fields in South America.
worthy to get it out of the deep.Venezuela is the only oil producing country in South
Oil is considered a non-renewable resource. It is for thisAmerica that is a member of the Organization of Oil
reason that it is so valuable to have it available forProducing Companies (OPEC). The other countries of
export. With an irreplaceable product, every producerSouth America may be blessed with oil reserves, but
is important. Having the oil available is another asset inmembership in OPEC gives Venezuela permission to
that it reduces each of these countries’have a voice in setting production and pricing numbers.
dependencies on foreign imports.