Science

The Dominican Republic certainly showed faith when it launched its first-ever oil and gas licensing round in July. Exploration in the country dates back to the early 1900s, with little success. Minor oil production from two small fields was recorded during the 1940s and additional drilling occurred in the 1990s, but official estimates have consistently put Dominican Republic proved reserves at zero. Relaunching exploration in the country was a direct mandate from President Danilo Medina’s office, said Nisael Dirocie Matos, director of regulation, importation and uses of hydrocarbons in the Dominican Republic Ministry of Energy and Mines in Santo Domingo. He said the ministry hopes to attract investors in a competitive bidding round, with low cost of entry, frontier exploration opportunities, competitive and simple terms, transparent rules and flexible contracts.

After years of a brutal industry downturn, Latin American oil and gas is finally starting to get back its strength. But just barely, according to Aditya Ravi, senior analyst for consulting firm Rystad Energy in Oslo. Challenges for the Latin American oil industry include a financial hangover from the oil price collapse, political uncertainties and a struggle to replace declining production. In Latin America, “Brazil and Guyana are the hotspots when it comes to exploration offshore. Until something big comes up in Argentina, it’s unlikely” those provinces will be overshadowed soon, Ravi said.