...Large Reserves; Stagnant Production Latin American oil reserves are large and growing. While the region currently accounts for 20% of the world's proved reserves, up from 14% in 2008, its production remains stagnant at approximately 10 million barrels per day (bbl/d), or 12% of the world's production. Over the short to medium term, production in the region is expected to grow as a result of previous efforts to find and develop resources. While Pemex, PDVSA and YPF will likely report flat production, Petrobras has the potential to increase production in the short term after the company received 1 million bbl/d of crude production capacity. Ecopetrol, which grew crude production by 4.5% in 2013, should also continue reporting production growth in 2014. Large Capex Drives Higher Leverage Aggregate capex for Latin American national oil companies (NOCs) will remain high and probably reach USD100 billion in 2014. Issuers will fund, on aggregate, approximately 65% of capex with internally generated...
