Brazil Nears Top Spot in Latin Oil Output

RIO DE JANEIRO — Brazil is poised to overtake longtime energy powerhouses Mexico and Venezuela as Latin America’s biggest oil producer, a result of both political flexibility and natural resources.

Trends suggest Brazil could rise to the top of the heap by 2011, as its ultra-deep offshore fields start producing in the months ahead.

Meanwhile, Mexico and Venezuela have seen crude-oil output drop dramatically in recent years. Traditionally high oil production in those countries made state-owned oil companies complacent, said David Shields, an independent energy analyst in Mexico City.

“Basically, the reason is that Brazil had a crisis to deal with in energy and Venezuela and Mexico never did,” said Mr. Shields.

Wall St, Journal