Chile produces small amounts of onshore and offshore oil
and gas from the Austral basin in the south of the ocuntry. There has
been a rapid decline in oil output after peaking in 1982. However modest
amounts of growth are now expected over the next decade as companies
have increasedt their activity levels.
Gas production has had a bumpy producti nhistory with output now
expected to increase steadily both from onshore and offshore as new gas
networks are developed.
Chile imports most of its oil and gas. Imported supplies
of gas dropped severely in 2007 as exports from Argentina were cut-off.
These were partly replaced by increased imports of oil. As gas imports
move upwards again from elsewhere so oil imports will decline once more
and oil consumption will fall in the industrial sector.
Gas consumption will also grow as new sources of gas are realised in
neighbouring countries although constrained by lack of supplies
generally in the short term. It is now less likely that an LNG plant
will be built on Chile’s Pacific coast taking gas from Bolivia and Peru
for conversion and export to the USA.