On July 29th S&P Capital IQ hosted a webinar focused on the future of Energy in Latin America. We polled our audience to see where they thought the biggest opportunities for energy would be in the next 5 years. The overwhelming response with almost 60% was Mexico. This view was generally in-line with the view of our panelists. With recent reforms in Mexico and abundant energy supply in North America the consensus seems to be that many opportunities exist in Mexico. Whether it be in the form of investment in energy and power production or infrastructure to move commodities – there seems to be a mid- to long-term growth story.
Additionally our panelists considered the question of how banking ties into the overall energy story in Latin America. The audience was asked how much of lending in the region currently goes to energy and related sectors. The responses were relatively split between 5-7% (23% of audience) 7-10% (30% of audience) and >10% (34% of the audience). The actual answer from our panelists was on the lower side closer to 5% but obviously varied by country.