Latin America’s national oil companies (NOCs) posted quarterly profits that would delight any investor, but with the exception of Argentina this hasn’t so far translated into significant oil and gas production increases.

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The oilfield services firms touted strong growth from Latin American operations in the first quarter. Halliburton Co. reported first-quarter revenue from Latin America of $653 million, up 22% versus the first quarter of 2021. Baker Hughes Co. CEO Lorenzo Simonelli said in 2022, the firm expects “to see another strong year of growth in Latin America, led by Brazil and Mexico.”

Schlumberger Ltd. reported first-quarter revenue of $1.2 billion from Latin America, up 16% year/year and flat sequentially. 

“Of course there are tremendous differences in the...