In recent years, South America has emerged as a hotspot for global oil exploration and production. The U.S. Energy Information Administration (EIA) forecasts that non-OPEC oil production will increase by 800,000 barrels per day in 2026, with Brazil, Guyana, and Argentina serving as the primary drivers of global oil production growth, accounting for half of the projected increase.
Amid this wave of energy development in South America, the commissioning of new sub-salt projects, shale development, and deepwater field construction are driving sustained growth in regional production. Brazil’s oil production growth is primarily driven by the commissioning of new sub-salt projects; by 2026, Brazil’s daily oil production is expected to increase by 200,000 barrels, reaching 4 million barrels. In Guyana, as multiple FPSO projects come online, the country’s daily oil production is expected to exceed 1 million barrels by 2027. Meanwhile, the development of Argentina’s Vaca Muerta shale basin is projected to boost its daily oil production to 810,000 barrels in 2026, up from 740,000 barrels in 2025.
The booming development of the South American market has placed higher technical demands on drilling fluid chemicals. Deepwater sub-salt projects require high-temperature, high-pressure loss-control capabilities; shale development requires highly effective collapse-inhibiting systems; and complex well conditions demand precisely tailored chemical solutions.
As a professional supplier with nearly two decades of experience in the field of oilfield chemical additives, Puyang Hoda Chemical Manufacturing Co., Ltd. has a clear understanding of this trend and is actively positioning itself to capitalize on it. Based on long-term attention and in-depth research into the South American market, Hoda Chemical is actively expanding its presence in the South American energy development market, focusing on key countries and implementing a differentiated product matching strategy. Hoda Chemical’s professional mud technology service team will provide customized product selection and technical support tailored to the geological characteristics of different blocks in South America.
Norwegian energy consultancy Rystad predicts that by 2030, oil from Brazil’s offshore fields, Guyana, and Argentina’s Vaca Muerta shale basin will become the most cost-competitive supply source among non-OPEC oil-producing nations. South America’s role in the global energy landscape will grow increasingly significant.
Hoda Chemical will continue to uphold its professional philosophy of “Born in the Oilfield, Understand the Oilfield Better.” With solid technical expertise and superior product quality, we are committed to providing robust chemical technology support for energy development in South America. We look forward to joining hands with oilfield clients and partners in the region to jointly write a new chapter in South American energy development.
