PETROLEUM IN LATIN AMERICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01018A000200060001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 120
• Document Creation Date: December 16, 2016
• Document Release Date: April 28, 2005
• Sequence Number: 1
• Publication Date: August 1, 1957
• Content Type: IR

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 GEOGRAPHIC INTELLIGENCE REPORT
PETROLEUM IN LATIN AMERICA
CIA/RR-G-17
August 1957
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( V N?
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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122
IDENTIAL
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WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 799, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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CONF1DENTAL
GEOGRAPHIC INTELLIGENCE REPORT
PETROLEUM IN LATIN AMERICA
CIA/RR-G-17
August 1957
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
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cTENTS
Page
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 3
I. South America . . . . . . . . . . . . . . . . . . . . . 7
A. Argentina . . . . . . . . . . . . . . . . . . . . 7
1. Geographic Setting of the Oilfields .
rn oil-; i
2. Status and Development . . . . . . . . . . . . 7
3. Production . . . . . . . . . . . . . . . . . . 9
4. Reserves . . . . . . . . . . . . . . . . . . . . 10
5. Refineries . . . . . . . . . . . . . . . . . . 11
6. Markets and Transportation . . . . . . . . . . 12
B. Bolivia . . . . . . . . . . . . . . . . . . . . . 15
C. Brazil . . . . . . . . . . . . . . . . . . . . . 21
1. Geographic Setting of the Oilfields . . . . . . 21
2. Status and Development . . . . . . . . . . . . 21
3. Production . . . . . . . . . . . . . . . . . . 23
4+. Reserves . . . . . . . . . . . . . . . . . . 24+
5. Refineries . . . . . . . . . . . . . . . . . . 25
6. Markets and Transportation . . . . . . . . . . 27
1. Geographic Setting of the Oilfields . . . . . 29
2. Status and Development . . . . . . . . . . . . 29
3- Production . . . . . . . . . . . . . . . . . . 30
CONFIDENTIAL
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.. Reserves . . . . . . . . . . . . . . . .
5. Refineries . . . . . . . . . . . . . . .
6. Markets and Transportation . . . . . . .
E. Colombia . . . . . . . . . . . . . . . . . .
1. Geographic Setting of the Oilfields . .
2. Status and Development . . . . . . . . .
3- Production . . . . . . . . . . . . . . .
4. Reserves . . . . . . . . . . . . . . . .
5. Refineries . . . . . . . . . . ? ? ? ? ?
6. Markets and Transportation . . . . . . .
F. Ecuador . . . . . . . . . . . . . . . . . . .
G. Paraguay . . . . . . . . . . . . . . . . . .
H. Peru . . . . . . . . . . . . . . . . . . . .
1. Geographic Setting of the Oilfields . .
2. Status and Development . . . . . . . . .
3. Production . . . . . . . . . . ? ? ' . .
ii . Reserves . . . . . . . . . . . . . . . .
5. Refineries . . . . . . . . . . . . . . .
6. Markets and Transportation . . . . . . .
J. Uruguay . . . . . . . . . . . . . . . . . . .
J. Venezuela . . . . . . . . . . . . . . . . .
1. Geographic Setting of the Oilfields . .
2. Status and Development . . . . . . . . .
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3. Production . . . . . . . . . . . . . . . . . . . 58
a. General . . . . . . . . . . . . . . . . . . 58
b. The Major Oil-producing Areas . . . . . . . 60
(1) The Maracaibo Basin . . . . . . . . . . 60
(2) The Falcon Region . . . . . . . . . . . 62
(3) The Apure Basin . . . . . . . . . . . . 62
(4) The Maturfn Basin . . . . . . . . . . . 62
1+. Reserves . . . . . . . . . . . . . . . . . . . . 63
5. Refineries . . . . . . . . . . . . . . . . . . . 61+
6. Markets . . . . . . . . . . . . . . . . . . . . 67
7. Transportation . . . . . . . . . . . . . . . . . 68
II. Mexico . . . . . . . . . . . . . . . . . . . . . . . . 71
1. Geographic Setting of the Oilfields . . . . . . 71
2. Status and Development . . . . . . . . . . . . . 71
3. Production . . . . . . . . . . . . . . . . . . . 74
4. Reserves . . . . . . . . . . . . . . . . . . . . 75
5. Refineries . . . . . . . . . . . . . . . . . . . 77
6. Markets and Transportation . . . . . . . . . . . 78
III. Central America and Panama . . . . . . . . . . . . . . . 81
A. General . . . . . . . . . . . . . . . . . . . . . . 81
B. British Honduras . . . . . . . . . . . . . . . . . 83
C. Costa Rica . . . . . . . . . . . . . . . . . . . . 85
D. Guatemala . . . . . . . . . . . . . . . . . . . . 87
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E. Honduras . . . . . . . . . . . . . . . . . . . . . . 89
F. Nicaragua . . . . . . . . . . . . . . . . . . . . . 91
G. Panama . . . . . . . . . . . . . . . . . . . . . . . 93
IV. The Caribbean . . . . . . . . . . . . . . . . . . . . . 95
A. Barbados . . . . . . . . . . . . . . . . . . . . . . 95
B. Cuba . . . . . . . . . . . . . . . . . . . . . . . . 97
C. Dominican Republic . . . . . . . . . . . . . . . . . 101
D. Haiti . . . . . . . . . . . . . . . . . . . . . . . 103
E. Jamaica . . . . . . . . . . . . .. . . . . . . . . . 105
F. Netherlands Antilles . . . . . . . . . . . . . . . . 107
G. Puerto Rico . . . . . . . . . . . . . . . . . . . . 109
H. Trinidad . . . . . . . . . . . . . . . . . . . . . . 111
1. Geographic Setting of the Oilfields . . . . . . 111
2. Status and Development . . . . . . . . . . . . . 111
3- Production . . . . . . . . . . . . . . . . . . . 112
4. Reserves . . . . . . . . . . . . . . . . . . . 113
5. Refineries . . . . . . . . . . . . . . . . . . . 114
6. Markets and Transportation . . . . . . . . . . 115
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Maps
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Latin America (25952) . . . . . . . . . . . . . . . . . . . 6
Argentina (25947) . . . . . . . . . . . . . . . . . . . . . 14
Bolivia (25950) . . . . . . . . . . . . . . . . . . . . . . 20
Brazil (25946) . . . . . . . . . . . . . . . . . . . . . . 28
Chile (25948) . . . . . . . . . . . . . . . . . . . . . . 32
Colombia (25943) . . . . . . . . . . . . . . . . . . . . 40
Ecuador (25949) . . . . . . . . . . . . . . . . . . . 42
Peru (25945) . . . . . . . . . . . . . . . . . . . . . . . 52
Venezuela (25942) . . . . . . . . . . . . . . . . . . . . 70
Mexico (25941) . . . . . . . . . . . ... . . . . . . . . . 80
Cuba (25951) . . . . . . . . . . . . . . . . . . . . . . . 100
Trinidad (25944) . . . . . . . . . . . . . . . . . . . . . 116
~q t p 'y a ~o ._
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T
CONFIDENTIAL
PETROLEUM IN LATIN AMERICA
Preface
Studies of the petroleum industry all too frequently are written
solely for the petroleum specialist and, therefore, are heavily
weighted with technical terminology and details that are of interest
to oilmen only; or they present a superficial picture of a current
situation and give little or no clarifying background data. This
study is designed to fit somewhere between the two categories. It
presents sufficient information, both current and basic, to aid the
individual who requires an understanding of the petroleum industry
in Latin America but has neither the technical training nor the
time to wade through the voluminous specialized literature on the
subject.
This report discusses the petroleum situation in each country
and colony in Latin America where oil is being produced; where there
is, or has been, an active exploration program; or where there are
refineries. Thus, only the Guianas, El Salvador, and the smaller
Caribbean islands are omitted. Topics considered for the major
oil-producing countries include geographic setting, status and
development, production, reserves, refineries, markets, and
transportation. For the less important producing countries,
only a summary of the overall petroleum situation is given.
CONIDEN_ IAI.
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Summary 1,p.144-145
The amount of crude oil produced in Latin America has been
increasing steadily for a number of years. In 1940, approximately
312 million bbls.* were produced; by 1950 the amount had more than
doubled, reaching 716 million bbls.; and by 1956 production had
passed the billion mark. In 1955 and 1956 the annual production in
Latin America accounted for about 18 percent of the total world
production. During these same years, the United States contributed
44 percent and the Middle East fields 21 percent.
The petroleum situation differs radically from one Latin
American country to another. El Salvador, for example, has no oil
production and apparently no oil potential; Venezuela, at the other
extreme, is one of the world's greatest producers and has tremendous
proved reserves. Between these two are shades of difference that
defy generalization.
Venezuela -- second only to the United States among crude-oil
producers -- in 1955 and 1956 produced about 75 percent as much
crude as all the Middle East countries combined. For the last few
years, about 90 percent of all Latin American oil came from
Venezuela's 100 or more fields. The entire petroleum industry in
Venezuela is booming: production is climbing steadily, new fields
are being discovered, new concession areas have been granted, and
refinery capacity is being expanded.
Mexico is the second most important oil-producing country in
Latin America, but its annual production is only a fraction. of the
Venezuelan output. The petroleum industry in Mexico has been a
government monopoly since the expropriation of private oil property
in 1938. Development has been retarded by excessive demands by
labor, lack of technical knowledge, shortage of capital, and other
factors. Nevertheless, recent developments, including the discovery
of new fields and a general expansion in refinery capacity, indicate
an improved situation in the near future. Annual production is
more than twice as great as in the years immediately preceding
expropriation.
It has been the Colombians' hope that their country would, as
far as oil is concerned, become a second Venezuela, but the hope
has never materialized. Colombia produces only about 5 percent as
*As used in this study, "barrels" denotes U.S. barrels, 1 barrel
equaling 42 U.S. gallons. The abbreviations "bbis." and "b/d" are
used for "barrels" and "barrels per day," respectively.
-3-
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much oil as does Venezuela, and proved reserves are only about 5
percent as great as those of Venezuela. Annual crude-oil output
in Colombia has doubled, however, since the end of World War II, and
Colombia ranks third among the Latin American oil-producing countries.
As in Mexico, the petroleum industry in Argentina is dominated
by the government, and petroleum resources have not been fully
developed. Production during the last few years has remained at
an annual rate of about 30 million bbls., an amount far short of
that necessary to meet the domestic demand.
The amount of oil produced in Trinidad has been increasing at
the rate of about 5 percent a year since 1950, and in 1955 reached
almost 25 million bbls. Some reports indicate, however, that the
output will soon begin to decline unless the current exploration
program is successful.
In Peru, a relatively stable output of petroleum is obtained
from old, intensively developed fields. In addition, millions of
acres -- including the comparatively inaccessible region east of
the Andes -- are being explored. Currently, the major producing
fields are in a small area along the Pacific coast.
Ecuadoran oilfields are concentrated on the Santa Elena
Peninsula, along the Pacific coast. For a number of years these
fields have produced crude oil, and recently the output has been
increasing gradually, but the total production has never been great.
Petroleum production in Chile is a relatively recent activity
and thus far has been undertaken on a small scale only. All
production comes from Tierra del Fuego in the extreme southern part
of the country. The Chilean petroleum industry has been practically
a government monopoly, but legislation recently proposed will relax
this monopoly and permit both domestic and foreign private interests
to participate in the industry.
Crude oil has been produced in Bolivia for more than 25 years
but in such small quantities that most of the petroleum consumed
had to be imported, despite a limited domestic demand. In the last
few years, however, the output has increased so substantially that
the petroleum industry has become the one bright spot in an otherwise
dismal economic scene. The oil industry has long been state owned,
but in 1955 a new code was promulgated that welcomes private capital.
This code is as favorable as any now in force in Latin America.
Brazil is believed to have vast petroleum resources, but the
amount of oil actually produced is far less than is required to
meet even domestic requirements. The reason for this situation
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is simply that Brazil lacks the capital, technical knowledge, and
incentive required to develop the petroleum resources but refuses
to permit the full participation of foreign companies that could
supply these needs.
An important oil discovery in Cuba in 1954, together with a
new law designed to stimulate oil exploration, touched off the
biggest oil boom in the island's history. Production has increased
significantly, but as yet no new major fields have been brought
into production. Currently, a tremendous exploration program is
underway, in which at least 35 companies are participating.
Elsewhere in the Caribbean area -- in Jamaica, Haiti, the
Dominican Republic, Puerto Rico, and the British island of
Barbados -- exploration for oil is also being conducted, but as
yet oil has not been produced on a commercial basis. Exploration
is also being undertaken in all the Central American countries with
the exception of El Salvador. Only in Costa Rica, however, has any
oil been found, and additional test drillings must be completed
before it will be possible to evaluate the discovery.
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I. South America
A. Argentina
1. Geographic Setting of the Oilfields
Argentina is bounded along the full length of its western side
by the Andes Mountains. To the east of these mountains are plateau
and plains regions underlain by thick marine sediments that have been
little affected by the intensive deformation characterizing the Andean
mountain belt. These regions contain the present oilfields and offer
the greatest possibilities for future oil discoveries. 2,sec l,p.l/
The major Argentine oilfields are in 4 groups, 3 along the east-
ern foot of the Andes and 1 near the seaboard not far from the Andes.
They include: (1) the Salta fields in the extreme north of the coun-
try, on or close to the Bolivian border; (2) the Mendoza fields in
Mendoza province in west-central Argentina, only a few miles from the
foot of the Andes; (3) the Neuquen fields in Neuquen province, also
within sight of the Andes; and (4) the Comodoro Rivadavia fields near
the Golfo (gulf) San Jorge in the far south. (See map 25947.)
The Salta fields are on rugged foothill ranges at the eastern
base of the Andes. These ridges are precipitous, wooded, and sparsely
populated; the lowlands to the east support scrub forest and are used
for grazing and timber production. The Mendoza fields are in arid
plains and badlands, about 750 miles south of the Salta area. Nearby
is the irrigated horticultural area of Mendoza, which was served by
railroad and airlines long before oil was discovered. The small
Neuquen fields, located about 400 miles south of the Mendoza district,
are in high, barren, sagebrush-covered plains, useful only for grazing.
The Comodoro Rivadavia fields are in an area of barren, windswept bad-
lands. Some industrial development has occurred in the area, and fair
roads radiate to all parts of the interior. No important agricultural
land use, aside from sheep grazing, has been or is ever likely to be
developed. 3,p.126-127
Petroleum deposits in Santa Cruz and Tierra del Fuego, at the
southern end of the Continent, also have attracted considerable
attention recently. Fragmentary reports indicate that this cold,
dry, desolate area contains important oilfields.
2. Status and Development
The petroleum industry in Argentina is dominated by the govern-
ment organization Yacimientos Petroliferos Fiscales (State Oil Fields),
generally referred to as YPF. National reserve areas established in
1935 cover most of the nation and can be exploited only by YPF. As a
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result, the private producers now operating in Argentina, limited to
total holdings of about 385 square miles, are drilling in depleted
oil reservoirs and are using all ingenuity to keep their fields pro-
ducing. 2,sec 2,p.1/
In mid-1955, with then President Juan Peron in virtual agreement
with the request of the Standard Oil Company of California for a con-
cession, foreign capital appeared to have a foot in the Argentine
door. By the end of September, however, the revolution that deposed
Peron was in full swing -- and with Peron, out went the Standard Oil
of California agreement and a similar arrangement pending with
Standard Oil of New Jersey. Subsequent governments have completely
disavowed the agreements and confirm the dominance of YPF in the
management of the country's petroleum industry. 4/
As an alternative plan for bringing much-needed foreign money
into the country, the government in 1956 sought to finance its own
$250 million expansion program through long-term construction loans
from foreign banks and equipment manufacturers. The aim of the pro-
gram was to double production within 3 years. This plan was not in-
tended to constitute entrance of private enterprise into petroleum
exploitation; the government reiterated that development of Argentina's
petroleum resources remains the exclusive province of YPF. 5/
To carry out the program, YPF was granted autonomous status and
assigned the job of negotiating for both equipment and technical know-
ledge. Nonetheless, oil specialists are openly skeptical of the idea
that the country can become sufficient in petroleum by 1959. 61P.146/
Development of the petroleum industry in Argentina began in 1865,
making it one of the oldest in Latin America. Production was insig-
nificant, however, until the Comodoro Rivadavia field was accidentally
discovered in 1907 by personnel of the government's Division of Mines
while drilling for potable water for local sheepherders. Thereafter,
crude production for the country as a whole increased steadily from
year to year, except for a few years of slight decline after 1943.
The history of crude-oil output in Argentina indicates a trend
to ever-increasing government ownership, with proportionate diminu-
tion of private ownership. In 1931, for example, 53 percent of total
production was privately controlled; by 1938, positions were reversed
and the government controlled 53 percent; 2 ,sec 2 .l and by 1955
almost 84 percent was government controlled. 7,P.40/
In all four of Argentina's principal producing districts, YPF is
a major producer,,,and in the Santa Cruz and the Tierra del Fuego
fields it is the only producer. The Standard Oil of New Jersey sub-
sidiary operates in the Neuquen and Salta districts; the Royal Dutch-
Shell subsidiary, in the Comodoro Rivadavia district; Astra, in
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Comodoro Rivadavia; and Rio Atuel, in the province of Mendoza south
of the major group of oilfields in that province. 2/
3. Production
In 1955, Argentina produced slightly more than 30 million bbls.
of crude petroleum, or about 1/2 of 1 percent of the world total.
This placed Argentina fourth among Latin American oil-producing coun-
tries -- following Venezuela, Mexico, and Colombia. 1,p.144/ On the
basis of data for the first 9 months of 1956, it has been estimated
that production for 1956 was slightly less than for the previous
year, with a daily rate of about 83 thousand bbls. as opposed to the
1955 rate of 84 thousand bbls. 6,p.105;8,p.141/
main Comodoro Rivadavia fields.
The area second in importance is the Mendoza district.
In
1953
it had 5 producing fields, 9/ and in 1955 it accounted for
percent of Argentina's crude production.
about
20
The most important of Argentina's four major oil-producing dis-
tricts is the Comodoro Rivadavia, which in 1955 produced about 18
million bbls. of crude oil, or about 60 percent of the nation's
total. 1 .229 Many of the district's 16 fields have been producing
for more than 30 years. In recent years the YPF has concentrated much
of its effort in the Caleta Olivia field, about 60 miles south of the
The Neuquen district had 8 producing fields in 1953? In 1955,
the output of this district was about 16 percent of the total national
production.
The fourth of the major producing areas is the Salta district.
Despite the potentiality of the fields in this district, little has
been done to develop them. In 1955, only about 2 percent of Argentina's
crude oil came from this district. Large reserves are believed to
have been proved in the northernmost fields of the district, the Campo
Duran and Madrejones. 1,p._229
The Santa Cruz and Tierra del Fuego districts contain small pro-
ducing fields, but information on them is fragmentary. Development
of the Santa Cruz area should be relatively easy and could be facili-
tated by constructing a 20-mile pipeline to the port of Rio Gallegos.
Development of the Tierra del Fuego district is also contingent upon
construction of transportation facilities. In early 1957, a press
report stated that a survey of the area had indicated good prospects
for production of "large quantities" of petroleum and that YPF would
soon accept bids for the drilling of 40 wells in the area. 10/
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- The following table indicates the relative importance of the
four major producing districts in Argentina.
Crude Oil Production, 1955 l,p?229/
District Daily Annual
bbls.
Comodoro Rivadavia
49,871
18,202,787
Mendoza
17,603
6,424,929
Neuquen
14,557
5,313,238
Salta
1,413
_
-
515,838
Totals:
73747
30,457,_792
In 1955, YPF fields produced about 26 million bbls. of crude
oil, or, as previously stated, 84 percent of the nation's output.
Virtually all remaining crude oil was produced by subsidiaries of 2
major international firms and by 2 small companies. The international
firms are Royal Dutch-Shell (Diadema Argentina, S.A. de Petroleo and
Standard Oil of New Jersey (Esso Productora de Petroleo, S.A.); the
small firms are the Astra Cia. Argentina de Petr6leo and the Cia.
Rio Atuel "El Sosneado." Astra is owned by Swiss interests, and Rio
Atuel by Argentine.
4. Reserves
The estimate of proved reserves in Argentina has changed appre-
ciably in the last 9 years. At the end of 1947, proved reserves were
estimated at 253 million to 325 million bbls.; 2,sec 1,p.17/ in
December 1956 the estimate was 400 million bbls., despite the
withdrawal since 1947 of more than 225 million bbls. 6,p.105/
The geographical distribution of these reserves in 1952, the latest
date for which such information is available, was as follows: Comodoro
Rivadavia, 47 percent; Salta, 19; Neuquen, 14; Mendoza, 12; and Santa
Cruz and Tierra del Fuego, 8. 2,sec 1-,p.18/
Of nine areas termed "favorable," the Chaco basin in north-central
Argentina is of paramount importance and could well develop into the
most productive petroliferous area in the country. The Santa Cruz
basin is also considered to have potential importance. The other
areas, though of lesser importance, that are believed to contain sig-
nificant quantities of petroleum are the San Jorge basin inland from
the Comodoro Rivadavia district; the Neuquen embayment adjacent to
the already-producing Neuquen fields; the Rio Negro trough; the
Mendoza basin near the producing Mendoza fields; the huge Parana
trough extending north from Mar del Plata, west to Cordoba, north to
Corrientes on the north, and east to the Rio Uruguay; the Parana
basin, most of which is in Brazil; and the Bahia Blanca basin.
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The remainder of the country, including the Andes Mountains and
much of northwestern and central Argentina, is considered "unfavor-
able" for the accumulation of petroleum. 2,sec l,p.9-11 and fig.l0/
5. Refineries
At the end of 1956, Argentina had in operation 17 refineries
(including one asphalt plant), which had a crude capacity of almost
200,000 b/d. This amount represented about 8 percent of the total
crude capacity (2,336,400 bbls.) for Latin America (including Mexico,
Trinidad, and the Netherlands Antilles). 6,p.147/ Crude runs in 1956
were about 80 percent of capacity. 7,p.40
Seven of the Argentine refineries are owned by YPF; their com-
bined capacity is 137,600 b/d, or about 70 percent of the total
Argentine capacity. The four refineries owned by Esso Refinadora de
Petroleo, a subsidiary of Standard Oil of New Jersey, have a combined
capacity of 32,300 b/d, or 16 percent of the country's total. The
only major refinery not owned by either YPF or Esso is the 21,000-b/d
plant owned by Diadema Argentina de Petroleo. 6,p.147/
In the following table, ownership, location, and capacity are
given for both major and minor refineries.
Argentine Refineries 6,p.147/
Capacity (bbls./stream day)
Location
Crude distillation Cracking a
Cia. Condor
Avellaneda
goo
...
Cia. La Isura, S.A.
Bahia Blanca
2,000
...
Diadema Argentina, S.A.
de Petroleo (Shell)
Buenos Aires
21,000
9,000 TC
Esso Refinadora de
Petroleo
Bahia Blanca
5,500
1,000 TC
Campana
25,000
11,000 TC
Dadin (Plaza
Lottero y Papini
Ramon Gorleri
Yacimientos
Huincul)
Manuel Elordi
Avellaneda
Quilmes
500 ...
1,300 ...
1,500 ...
1,500
Petroliferos Fiscales Avellaneda
La Plata
6,00o 2,500 TC
95,000 b/ 18,400 FCC
7,000 TC
a. TC -- thermal cracking; FCC -- fluid catalytic cracking.
b. Additional 28,000-bbl. crude capacity planned for completion in
1960.
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Yacimientos
Petroliferos Fiscales
Lujan de Cuyo
11,300
c/
9,000 TC
(Continued)
Plaza Huincul
1,300
...
Comodoro Rivadavia
5,500
2,000 TC
Salta
2,500
1,300 TC
San Lorenzo
16,000
6,200 TC
Cia. General de
Asfaltos
Total:
195,900
_66,00
c. Additional 12,500-bbl. crude capacity under construction, to be
completed in 1958.
6. Markets and Transportation
Although Argentine governments have insisted that self-sufficiency
in petroleum is a high-priority goal, the degree of accomplishment
falls far short of the objective. Petroleum production has not ex-
panded fast enough to meet the increased demand brought about by
postwar industrialization and the rising standard of living. Between
19+6 and 1952, for example, production increased at an average annual
rate of only 3 percent, while internal consumption increased an average
of 8 percent a year. Thus, the country has become more dependent upon
imports, and the petroleum industry's foreign-exchange requirements
have increased, rather than decreased. 2,sec 6,p.1-2/
In 1938, Argentina produced about 17 million bbls. of crude oil
and imported less than 5 million barrels. By 1955, domestic pro-
duction had almost doubled and amounted to about 30 million bbls. --
but imports had also increased to 30 million bbls. l,p.l15;11,p.3/
During the first 9 months of 1956, Venezuela was the source of more
than half the imported crude oil. Kuwait supplied about one-third,
and Peru, Ecuador, and Bolivia accounted for most of the remaining
crude oil imported. 12213,14/
Since World War II, Argentine refining capacity has expanded
somewhat more rapidly than the rate of increase in domestic demand.
Immediately after the war the output of domestic refineries accounted
for only about 65 percent of the country's requirements, but by 1953
the proportion had increased to more than 80 percent, even though the
growth in demand was considerable. 2,sec 6,p.6/
Despite the additional refining capacity, during the first half
of 1956 Argentina imported about 14 million bbls. of refined products.
As has been the case for a number of years, the Netherlands West
Indies was the principal source, supplying about two-thirds of the
imported products. Venezuela and the United States were the other
major suppliers. In the first quarter of 1956, 111,000 bbls. of fuel
oil were imported from the Soviet bloc. 12,13/
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Argentina imported approximately 4.6 million bbls. of petroleum,
principally refined products, from the USSR in 1955. This amount
represented about 6 percent of total consumption in that year --
slightly more than in 1954, when the first Soviet Bloc petroleum was
imported. In both years, Argentina ranked immediately after Finland
and Sweden among Western recipients of Bloc petroleum. 15,16/
Argentina exports only minor quantities of petroleum. In the
first half of 1956, the total petroleum exports reported consisted of
12,600 bbls. of aviation gas. This export was made by YPF to the
Uruguay Government under a contract to supply 44,000 bbls. for use in
military aircraft. No petroleum or petroleum products were exported
in 1955. 13/
Geographical and climatic conditions constitute a major handicap
in Argentina's efforts to become self-sufficient in petroleum. The
oil deposits are located in remote areas of the country, far from
centers of population, and must be developed under unfavorable cli-
matic conditions. The producing districts of Comodoro Rivadavia,
Neuquen, and Mendoza are located in dry wastelands. Investment in
auxiliary facilities, such as housing, water systems, and roads, must
accompany field development. On the other hand, consumption is con-
centrated in the heavily populated provinces; the province of Buenos
Aires and the Federal District alone account for well over one-half
the total petroleum consumption.
Transportation of domestic crude oil to refineries involves the
use of pipelines, waterways, highways, and railroads. The petroleum
pipelines are located principally in (1) the Comodoro Rivadavia dis-
trict, from which the crude oil is transported to seaboard terminals,
and (2) the Mendoza, Neuquen, and Salta districts, from which the
crude is moved to nearby refineries or to loading points on the rail-
roads. A pipeline also extends from the Agua Blanca field in Bolivia
into the Argentine Salta district. Because the pipeline facilities
are so limited, development of the producing districts that are located
in the interior of the country has been retarded. To correct this
situation, construction of additional pipelines has been given a high
priority in the government's new petroleum-development plan. Work
has already begun on an 800-mile crude pipeline from the Campo Duran
field in the extreme north to the San Lorenzo refinery near Rosario.
Plans also call for a 500-mile pipeline from the Mendoza fields, in
the Andes foothills, to Buenos Aires. l,p.224;17;18/
Tankers are used for coastal transportation of crude oil from
the Comodoro Rivadavia district to the Buenos Aires consuming area,
more than 1,000 miles to the northeast. Tankers also carry crude and
fuel oil from Caribbean ports to Buenos Aires.
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Railroads play an important part in the transportation of both
crude petroleum and refined products. Movement of crude from the
Salta, Mendoza, and Neuquen fields is at present by rail, but many
of the wells have had to be shut back because of the poor condition
of the railroad. Inadequacy of railroad facilities has also deterred
importation of Bolivian crude oil. 18/
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62 54
SALTA FIELDS
Yacuiba
i ??-"
BOLIVIA
o to
MADREJONES-
~l!(!~//r / ~~
~
e
MJ
(Approx. Ioca6on)
SALTA ;
'
a ' ~ ? -r `~
e:
CAMPO DURAN
--
FIELDS -
PARAGUAY)
BOLIVIA
24
g>o
24
F
Salta
, ?
ra
0
t
Yariguarenda
S
Formosa ' ?!i.
Vespucio
Tucuman
BRAZIL
Cordoba,
Santa F'
?.
l
rfL, Parana
rH
Oran
Hickman
32
~ San
Lorenzo
Rosario URUGUAY
32
anuel Elordi
U
MENDOZA
FIELDS
BUENOS
COMODORO RIVADAVIA
MENDOZ
'
AIRES
A FIELDS
? Mendoza
FIELDS
o.
cJ
AREA L ?
M?r? lulan de Cuyo
.+ 895,
The proved reserves of crude petroleum in Trinidad were estimated
at 285 million bbls. at the end of 1956. _6,p.105/ On the basis of
the estimated extent of "probable" petroliferous sediments, it appears
that future discoveries in Trinidad (including both land areas and
submerged areas) could at least equal the proved reserves. Therefore,
an estimate of the total probable reserves could reach 600 million
bbls., half of which might be developed in the offshore areas. 111+,
sec 1,p.8-9/
Based on available geologic information, all of Trinidad south
of the Central Range may be considered "favorable" for the existence
of petroleum in commercial quantities. This area is underlain by
the same kind of geologic formations as in the producing fields.
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"Favorable" structures also have been located under the Gulf of Paria,
which lies between the producing areas of eastern Venezuela and those
of southwestern Trinidad. 114,sec l,p.3/ Many believe that the best
prospects for developing substantial additional reserves lie in this
offshore area. Among the best wells on the island are those drilled
under the gulf from onshore sites. 6 .122
"Possible" petroleum areas include the Central Range and the
Northern Basin. The Northern Range is the only part of Trinidad
that is considered "unfavorable" for the discovery of petroleum.
114,sec 1,p.3-4
5. Refineries
Of the three refineries on the island, the largest is located
at Pointe-a-Pierre, about 30 miles south of Port-of-Spain on the
west coast. This refinery was constructed by the Trinidad Oil
Company, Ltd. (formerly Trinidad Leaseholds, Ltd.), but in 1956 it
was sold, along with other assets, to the Texas Company. 6 .1 1
The second largest refinery is at Point Fortin, about 20 miles
southwest of Pointe-a-Pierre. It is owned by the Shell Group and
is operated by a subsidiary, the United British Oilfields of Trinidad,
Ltd. The other refinery is a small topping plant at Brighton,
located about midway between Pointe-a-Pierre and Point Fortin on the
Gulf of Paria. This refinery, operated by Brighton Terminal, Ltd.,
a U.S. firm, obtains some of its crude oil from Trinidad and some
from Venezuela. 11 sec 3,p.2-3/
The following table indicates the capacities of these
refineries as of the end of 1956.
Refineries 6,p.151/
Company and location
Capacity, bbls. per stream day
Crude
distillation Cracking J
The Trinidad Oil Co., Ltd. (Pointe-a"-Pierre)
100,000
30,000 Vis
25,000 FCC
Shell Trinidad, Ltd. (Point Fortin)
33,000
Brighton Terminal, Ltd. (Brighton)
4,000
Totals:
137,000
55,000
a.Vis -- visbreaking; FCC -- fluid catalytic cracking.
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6. Markets and Transportation
Since Trinidad's internal market for petroleum requires only a
small proportion of the total production, most of the island's crude
oil and refined products are exported. External markets and the
bunker trade absorb over 90 percent of the oil produced. lll+,sec 6,p.l/
In 1955 Trinidad exported about 3 million bbls. of crude
petroleum. ll .3 Information is not available on the destination
of petroleum in that year, but Canada has consistently been Trinidad's
best customer since World War II. l]A,sec 6,p.2/ Exports of refined
products, which actually sustain the Trinidad oil industry, went
primarily to the United Kingdom, but substantial amounts have been
sent to Argentina, Brazil, and numerous other markets. 114,sec 6,p.4/
In 1954, major refined products totaled about 35 million bbls., most
of which were exported or used in the bunker trade. L2.6
Trinidad imported 18 million bbls. of crude oil in 1955 for
processing and reexport. 112P..3/ Most of this crude, which was
brought in to maintain refinery operation, came from Venezuela.
ll4,sec 6,p.2/ Few refined products are imported.
All the crude oil produced in Trinidad is transported from the
fields by pipeline. Since the fields are close together and near
the refineries and terminals, the pipelines are shorter than those
in most oil-producing countries. Railroads and highways play only
a minor role in the transportation of petroleum on the island. 114,
sec 1F .l
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61?30'
61015'
61?00'
60045'
11?
11?
0
00'
C A R I B B E
A N S E A
A T L A N T I C
?
lo?
VENEZUELA
?
o
10
45'
45'
0 C E A N
PORT-OF-SPAIN
~Tunapuna
Arima
Carom
che
o
angre Grande pioP
10?
G U L F
10
30
30'
TRINIDAD
0 F
OILFIELDS
AND
P
A R I A
Tabaquite
REFINERIES
ORTOIRE
PENAL-,
Pointe-&-Pierre
, Rio Claro
Oilfield
San Fernando
Princes
e
?00 hra
~{ ? Pierreville
?
' Town
er
Refinery
]o
10
15'
Brighton a Brea BARRACKPORE
Ortoire
15'
`
BRIGHTON-VESSIGNY
PO
Pipeline
HIGH SEAS
GUA
L
,
RESERVE ~Deb~
OroQJ
x'
6
ii"f1
PENAL
Point Fortin
r
POINT FORTIN
'Pe"al
Siparia
Basse Ter
e
0 5 so 1,5 Miles
J
PARRYLANDS
Lw LOS BAJOS
j
~
Guayaguayare
r
5 10 15 Kilometers
MORNE DIABLO
/
6
GUAYAGUAYARE
FUllarton
PALO
i
QUINAM
r
o
OROS
Seco
Palo o Seco
QUARRY RRY
61?45'
61?30'
61?15'
61?00'
60?45'
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Petroleum information is not only readily available but
voluminous for Venezuela, Mexico, Colombia, and other countries
where the petroleum industry has considerable national and
international importance. For countries where petroleum is of
minor significance, data are fragmentary but are sufficiently
complete for purposes of this study.
For all the countries, source material on the geographic
setting of the oilfields was adequate and for the most part
thoroughly reliable. Information on the development and current
status of the petroleum industries for most of the countries
considered was available in a number of authoritative sources.
Petroleum production figures varied somewhat from source to source
and were not always as detailed or as up-to-date as might have been
desired, but the gaps and inconsistencies were of relatively minor
significance. Estimates of the petroleum reserves were far from
uniform; where major differences of opinion were encountered, the
conflicting viewpoints were included in the study and, where possible,
the reasons for these differences were stated. Detailed information
on refineries was readily available in various sources but the
information was not always in agreement, particularly as to capacities.
This lack of uniformity was to be expected because a major refinery
expansion program is underway in Latin America and changes are
occurring almost daily. Data on the principal markets for Latin
American petroleum and petroleum products were less readily
available and less complete than for any other subject considered
in the study. Sufficient reliable information was obtained, however,
to present an overall view of the market situation. Pipeline
information was reliable and in sufficient detail; data on the
movement of petroleum by road and railroad was fragmentary but these
means of transportation are relatively unimportant so far as the
petroleum industry in most of the countries considered in this
study is concerned.
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