Oil and gas production in Peru presents strategic challenges and opportunities.

The recent information provided by the Peruvian Society of Hydrocarbons (SPH) highlights a mixed landscape in the production of oil and natural gas in the country. While significant figures have been recorded in certain blocks, the overall context presents challenges that must be addressed by authorities and the energy sector. In particular, the blocks located in Loreto and Piura have stood out for their production, with Block 95 in Loreto leading at 14.36 thousand barrels per day (MBPD), followed by Block X and Block Z-69 in Piura with 7.70 MBPD and 4.35 MBPD, respectively. However, it is important to note that, although these numbers are significant, the total production of oil and condensates in August reached 38.57 MBPD, which represents a decrease compared to the previous month. This decline in production, while concerning, also presents a positive note when compared to the same month last year, where an increase of 2.5% is observed, suggesting a long-term upward trend. The situation is even more complex when considering natural gas production. Here, there has been a slight drop from 1,430 million cubic feet per day (MMCFD) in July to 1,387 MMCFD in August. Nevertheless, when comparing this figure to the same month last year, a significant increase of 9.5% is evident. This contrast between month-to-month and year-to-year figures highlights the volatility of the sector and the need for adequate strategic management. Additionally, it should be noted that several blocks are not reporting production, indicating that there are areas of the country that still possess untapped potential. Blocks such as 67 in Loreto and several in Piura and Talara have not registered activity, which could be a cause for concern for authorities and for future planning in the energy sector. The lack of production in these blocks may be related to issues of infrastructure, investment, or regulation, which require immediate attention. In this context, the Central Reserve Bank (BCR) has indicated that it is difficult to find an infrastructure project in the country that is not profitable. This statement underscores the importance of continuing to invest in energy infrastructure, not only in the extraction of hydrocarbons but also in the logistics and distribution of natural gas. The profitability of these projects could serve as an incentive to attract the necessary investments to strengthen the sector. The impact of these changes in oil and gas production translates into direct effects on the country's economy. As production figures fluctuate, so do the state revenues from royalties and other taxes related to the extraction of natural resources. It is essential for authorities to remain attentive to these dynamics to implement policies that ensure a steady flow of income and contribute to regional economic development. On the other hand, the government has announced that it will take measures to better manage Petro-Perú, which may include the selection of a new Project Management Office (PMO) and possible changes to the board. This decision is crucial, as efficient management of the state-owned company can make the difference between stagnant production and one that drives the country's energy development. As the pieces move on the energy board of Peru, it is vital to work on strengthening a regulatory framework that encourages both production and investment in infrastructure. Collaboration between the government, companies, and the community is essential to foster an environment in which hydrocarbon projects can thrive while respecting the social and environmental context of the affected regions. Ultimately, the future of the hydrocarbon sector in Peru will depend on the authorities' ability to adapt to changing circumstances and the willingness of companies to innovate and improve their processes. With proper management and a commitment to sustainability, there is significant potential for the country to maximize its natural resources, benefiting the economy and improving the quality of life for its citizens.