Populist candidates in Colombia, Brazil, and Mexico have campaigned on dramatic new reforms for state-run oil industries and are now gaining momentum in polls.
Upcoming presidential elections in Latin America could be decisive in advancing policies to maintain oil revenues. However, in the current climate of growing polarization and deeply unpopular incumbents, the elections are generating tremendous political uncertainty.
Canada's oil market is dealing with transportation constraints while heavy crude producers such as Colombia and Venezuela are seeing output declines and OPEC producers are cutting production.
The volatile nature of oil prices, widespread opposition to new projects, and the uncertainty of local and national politics make it crucial for Colombia to diversify its economy.