Today’s energy sector leaders face multiple competing challenges – meeting ever-increasing energy demand while ensuring energy security, along with satisfying shareholder and government commitments to reduce emissions.
The challenge is particularly evident in regions like Latin America and the Caribbean, which, according to the Economic Commission for Latin America and the Caribbean, is expected to increase in population by 22 percent by 2050.
Executives from the region’s principal operators will discuss competing priorities at the AAPG Energy Summit, a business conference targeted to decisionmakers taking place this month in Punta del Este, Uruguay.
Themed, “Strategy, Security and Transition,” the 2024 Energy Summit will highlight discoveries and exploration opportunities – with a particular focus on South Atlantic Margins – and provide insights into the potential for carbon storage, hydrogen, geothermal and biofuels throughout the Americas.
Right Place at the Right Time
Victor Vega, 2024 Energy Summit co-chair and corporate adviser for AAPG’s Latin America and Caribbean Region, explained the significance of having AAPG’s first event in Uruguay.
“Uruguay’s national oil company ANCAP has been a huge supporter of AAPG activities for many years, and we are very excited to have them as hosts for this key event for the Region,” he said. “Now is the perfect time to go to Uruguay.”
Uruguay is a regional leader in renewable energy generation, and discoveries in Namibia and South Africa have brought renewed interest in the country’s offshore basins.
“Both the exploration and the business climate are very exciting all along the Atlantic, from Guyana and Suriname to the North, of course in Brazil, and as well as offshore Argentina and Uruguay,” Vega said.
“Uruguay is located strategically between two exploration-heavy neighbors: Brazil and the pre-salt plays to the North, and Argentina, with the Vaca Muerta and the world’s largest unconventional resources potential outside the Permian, as well as a new offshore frontier,” he added.
Hector De Santa Ana, adviser to the president of ANCAP, said Uruguay has much to share with countries who are interested in expanding their energy mix.
“Uruguay has consolidated a state policy and infrastructure for the development of renewable energies over the past decade, what we call the first stage of the energy transition, which has been successfully achieved and stabilized,” he said.
“Today, nearly 100 percent of domestic electricity consumption is renewable. Building on this position that distinguishes us as a country, we are now moving into the second stage of the energy transition, where the large, untapped renewable resources will support projects to produce green hydrogen and renewable fuels for export,” he said.
The advance toward the energy transition, however, does not mean abandoning hydrocarbons, De Santa Ana said.
“With gas and oil production, the path and destination of the energy transition remain uncertain and could remain just a dream. For this reason, despite the achievements, major oil and gas operators continue to explore the offshore basins of the Uruguayan Atlantic intensely,” he said.
Exploration Success in South Atlantic Margins
Exploratory activity in Uruguay has accelerated significantly in recent years, with seven blocks awarded through the Open Uruguay Round, in place since 2019.
The 2022 Venus and Graff discoveries in the Orange Basin of Namibia increased expectations for the Pelotas Basin located on the other side of the Atlantic conjugate margin.
Renewed operator interest and contract bid submissions led to the late 2023 signature of additional agreements between contractors and ANCAP for the exploration and eventual development of oil and gas resources offshore Uruguay.
“The South Atlantic has become an important hydrocarbon exploration hot spot since the giant discoveries announced in the Orange Basin by Shell, TotalEnergies and Galp between 2022 and 2024,” said Karyna Rodriguez, vice president of global new ventures at Searcher, a company that has multiple studies in Namibia and South Africa as well as Uruguay and Argentina.
Rodriguez said she looks forwards to sharing new insights revealed by modern 3-D seismic data acquired between 2022 and 2024, during participation in the Energy Summit executive panel dedicated to the South Atlantic Margins Southern Segment: Argentina, Uruguay, Namibia and South Africa.
“Access to new 3-D seismic data gives important insights into source rock presence, thickness, quality and hydrocarbon phase generation. Sharing these insights together with identification of huge prospectivity in the Pelotas Basin is important to help meet future energy demand in a timely and environmentally responsible manner,” she said.
Rodriguez described how discoveries in the South Atlantic will help countries prepare for the future.
“Exploration for oil and gas must be ramped up if future energy demand is to be met. Lowering carbon emissions is an important consideration in all phases of the exploration and production cycle and it needs to be taken into account in order to achieve sustainable and environmentally friendly operations,” she said.
Anna Paula Lougon, business development director at Viridien, said she looks forward to participating as chair for the South Atlantic Margins: Central Segment session, highlighting Brazil and Angola.
“I am particularly excited about the panel, as it represents an opportunity to discuss new frontiers and international collaboration that can open up new horizons for exploration and energy development,” she said.
The Role of Oil and Gas in the Energy Transition
Lougon holds a pragmatic view of the oil and gas industry’s relationship to the energy transition.
“I believe more in diversification than in energy transition,” she said. “The oil and gas industry has a central role in integrating other cleaner and more sustainable energy sources, such as solar, wind and hydrogen, without abandoning traditional resources. It’s not about choosing one or the other but doing both in a complementary way.”
Lougon noted that international operators show how striking a balance makes good business sense.
“ExxonMobil stands out by balancing traditional hydrocarbon exploration with significant investments in lower-carbon technologies, such as carbon capture and hydrogen,” she said. “Their strategic approach shows that companies can lead in both oil and gas and renewable energy at the same time.”
ExxonMobil will provide two sessions chairs for the Energy Summit exploration sessions and a panelist for the Equatorial Margins session highlighting Guyana and Suriname.
Vega explained how Energy Summit committee members designed the agenda to mix the hydrocarbon exploration sessions with sessions exploring the commercialization of alternative energy sources.
“We didn’t want to have all ‘oil and gas’ one day and ‘energy transition’ one day. A key objective for the Energy Summit is removing silos, seeing how everything is connected and creating a single dialogue where everyone participates,” he said.
To Integrate or Not To Integrate
For Lougon, promoting integrated discussions is a good practice for companies whose hydrocarbon exploration and new energies groups work in different departments.
“In my view, while separating teams focused on hydrocarbons from those working on new energies and low-emission solutions might seem practical for specialization, it can hinder the overall energy transition,” she said.
“I believe collaboration between these teams is critical because the two areas are not mutually exclusive. By working together, we can share best practices and technologies, resulting in a more integrated and efficient approach to addressing global energy challenges.”
Lougon cited an example from Viridien, who recently released the second phase of its GeoVerse Carbon Storage Screening Study for the Gulf of Mexico.
“This project, which complements our seismic data, showcases how integrating expertise from different teams – ranging from hydrocarbons to carbon capture and storage – can lead to innovative solutions,” she said.
The study supports upcoming carbon sequestration lease rounds and provides an example of how collaboration across energy sectors can advance both traditional and new energy solutions simultaneously.
“This integrated approach not only supports the hydrocarbon industry but also accelerates the transition to low-carbon solutions, demonstrating that both areas can advance in parallel when teams work together,” she said.
At ANCAP, the energy transition team is a part of exploration and a single manager oversees both groups. De Santa Ana said the practice works well at ANCAP and might be a good model for other companies, particularly those with limited staff.
“This could be a viable alternative, but what really matters is that companies commit to energy transition – a necessary and irreversible phenomenon that must proceed within realistic and achievable timelines and conditions,” he said.
For De Santa Ana, the discussion should not be about oil and gas versus renewables; it should be about energy.
“Today, companies are beginning to see future sustainability in an integrated manner from all perspectives, in order to maintain a stable and sustainable business,” he said.
“Oil and gas, along with green energy and resulting fuel products, should be viewed as part of an integrated system for many decades, growing according to capacities, potentialities, development perspectives, needs, markets, and secure, reliable contracts.”
Best Practices
Energy Summit discussions highlight best practices from countries who have solid models for leveraging exploration to meet energy demand while implementing emissions-reductions strategies.
She cited Norway as example of a country that has achieved significant hydrocarbon production while advancing clean energy initiatives.
“Their approach to carbon capture and storage and investments in renewable energy, like offshore wind, shows how an energy-rich country can also lead in emissions reduction,” she said.
De Santa Ana agreed.
“I believe that Norway, like few other countries, has successfully navigated this complex energy transition process with many actions and few words, largely supported by its oil and gas industry,” he said.
He acknowledged, however, that what works for one country might not work for another.
“The energy transition can only be measured based on what each region and country can and wants to do, considering its economic, political and social conditions,” he said. “Because continents – and countries within the continents – have completely different situations, the energy transition does not look the same everywhere.”
“There are underdeveloped regions with great potential to generate green energy and developed regions that are predominantly consumers. Some have mature regulations, while others lack any at all,” he added.
Cross-Regional Collaboration
Lougon, whose employer Viridien is based in France, said collaboration between Latin America and the United States and Western Europe can help to accelerate the global transition.
“Latin America and the Caribbean have significant potential for growth in renewable energies, particularly due to their abundant natural resources. However, they still face challenges in infrastructure, legislation and financing,” she said.
“On the other hand, the U.S. and Western Europe are further along in their energy transition, with more mature regulations and incentives to promote clean energy. Collaboration between these regions can accelerate this global process.”
Advice for Policymakers
Energy Summit participants panelists have advice for regional leaders faced with making policy decisions related to energy security and sustainable development.
For Lougon, supporting exploration is fundamental to achieving both objectives.
“We must not forget the importance of continued investment in exploration to ensure energy security for Latin America. This is crucial for meeting future energy demand while also advancing sustainability goals,” she said.
De Santa Ana agreed, while also acknowledging that long term success requires a stable political environment.
“Moving toward green, renewable, clean, safe and affordable energy requires promoting more complex and expensive hydrocarbon exploration and production to support and enhance the development of new green energies,” he said. “In addition to advanced technology and significant investment, decades of global peace and security will be needed to consolidate the global energy transition, step by step, at the scale, requirement and pace of each region and country.”
Convening Policymakers and Decision-makers
Agencies tasked with implementing policies will meet in Punta del Este the day before the conference begins.
Pre-event activities include the Regulatory Agency Meeting, a private session for state entities responsible for the promotion, bidding and contracts in the Latin America and the Caribbean petroleum and natural gas sector, and the Agency-Industry Roundtable for executives from regulatory agencies and operators tasked with the sustainable development of oil and gas in the Latin America and Caribbean Region.
The sessions are the highlight of the Energy Summit for De Santa Ana, who has represented ANCAP at similar meetings held throughout the region over nearly two decades.
“We have systematically and uninterruptedly participated in and promoted business opportunities, integration, and synergies in the industry at International AAPG meetings for the past 18 years,” he said.
“These events promote, integrate, and optimize activities, generate synergies, create opportunities and help to view the oil and gas and energy industries in a global and integrated manner, as will likely be necessary and consolidated in the future.”
Expectations for the Conference
De Santa Ana believes the Energy Summit will exceed initial expectations for both organizers and participants.
“Being the first AAPG event in Uruguay, many top-level technical professionals and executives from oil and gas and energy companies involved in projects in Uruguay, as well as service companies, environment, transportation, logistics, ministries and government institutions, are expected to participate,” he said. “We anticipate it will be a highly significant energy event, qualitatively measured by the strong participation of prominent leaders and executives from the oil and gas and energy industries.”
In addition to hosting the regulatory agency meeting, De Santa Ana looks forward to the Atlantic Conjugate Margin panels and the business-to-business sessions held on-site during the event.
“We at ANCAP expect to achieve opportunities for new businesses and partnerships with energy companies, associated with farm-ins in oil and gas in offshore blocks and to promote, the soon to be launched, H2U Round for green hydrogen production in offshore blocks.”
The Energy Summit in Punta del Este provides new business opportunities for companies like Viridien, whose CEO Sophie Zurquiyah will join the CEO Panel with ANCAP President Alejandro Stipanicic.
Lougon said events like the Energy Summit are crucial because they convene key stakeholders from industry, academia and government to discuss trends, innovations, and challenges in the sector.
“These events provide a forum for the exchange of ideas, formation of partnerships, and the creation of strategies that will shape the future of energy. This is especially relevant for regions like Latin America and the Caribbean, where collaboration with more advanced regions, such as the US and Western Europe, can help accelerate the transition to cleaner energy and overcome infrastructure and financial challenges,” she said.
“There are promising opportunities still to be discovered. By exploring and integrating both traditional and new energy sources, we can secure a sustainable energy future for the region,” she said.
Invitation to Participate
Vega said the Energy Summit is a must-attend event for anyone interested in exploration or new business opportunities in the Latin America and Caribbean Region.
“The executive panels and International Pavilion presentations provide a quick and comprehensive overview of trends and business opportunities available in the region, and the B2B sessions allow you to meet one on one with the individuals leading the activities,” he said. “You can get more done in two days than in a month of traveling around the region.”
De Santa Ana said the event location is a bonus.
“Punta del Este is a natural destination that offers over 20 kilometers of beautiful beaches, hills, vineyards, restaurants and museums, all within a serene and peaceful environment,” he said.
A peninsular city located where the Rio de la Plata meets the Atlantic Ocean, Punta del Este is one of the most exclusive cities in South America. The city’s landscape, beaches and cultural attractions make it a popular destination for tourists from throughout the region.
The Energy Summit takes place at the Enjoy Punta del Este Resort in Punta del Este on Nov. 19-21.
For more information and to register visit EnergySummit.AAPG.org.