Upstream oil and gas spending in Latin America is on track for a modest year/year (y/y) recovery in 2021 after a pandemic-driven slowdown in 2020, according to Evercore ISI.

Latin America NOC spend

Exploration and production (E&P) spending by select firms in the region fell by 14% y/y in 2020, Evercore analysts said in the firm’s 2021 Global E&P Mid-Year Spending Outlook. The report, based on a survey of nearly 250 oil and gas companies worldwide, was completed in May and published June 10.

Last year’s spending decline was more modest than the 26% plunge forecast by Evercore in its initial 2021 survey published late last year. As a result, capex by select firms in the region is now projected to rise 10% y/y in 2021, versus the 27% rise previously forecast, said the team of Evercore researchers led...