Countries that export mineral resources like oil and natural gas are recognized for their ability to create wealth. Countries discovering deposits for the first time must learn from the experiences of other nations to develop their exploration and exploitation capabilities in line with the best international practices.
In Latin America, the countries that have successfully exploited hydrocarbon deposits on their own soil are Brazil, Colombia, Mexico, and Venezuela. Guyana recently discovered oil deposits in 2015, and today exports nearly one million barrels per day. These countries have varied experiences, as some have managed the matter very successfully, while others not so much.
The success or failure of these countries regarding the exploration and exploitation of their mineral resources is closely related to internal governance issues. Generally, where states provide support for successful hydrocarbon industry projects, the benefits tend to be achieved. In countries with governance problems, even if projects start well, they often end badly. It is essential that the rules of the game are clear and transparent, and at the same time, resistant to arbitrary changes by the current ruling government.
Looking at comparative experiences, the Dominican Republic starts from an advantageous point compared to other nations, as it currently enjoys solid economic development and political and social stability. Therefore, this is a good time to take advantage of the benefits that hydrocarbon industry development can bring. Clear rules, clear incentives, and a will to do things right will allow the hydrocarbon industry to develop successfully.
Emerging trends
#1 Energy security:
The focus on energy security is driving greater attention to energy efficiency and domestic energy production, leading to increased government efforts in designing and operating energy markets, as reflected in the growing role of green industrial policies, attention to the security of energy supply chains, and, where relevant, the use of local fossil resources.
#2 Energy efficiency:
The pressure to reduce emissions and improve sustainability has led to an acceleration in the adoption of energy-efficient technologies and practices, both in the industrial and residential sectors, driven by government policies and market demands..
#3 International threats:
Geopolitical tensions and volatility in international energy markets are driving diversification of sources and suppliers, as well as the development of strategic energy storage capacities and critical mineral resources to mitigate risks.
#4 Growth of electricity:
The demand for electricity continues to outpace total energy demand, driven by the electrification of sectors such as transportation and industry, as well as the increased consumption of digital technologies and the growing penetration of renewable energies.
#5 Investment in critical mineral mining:
Investment in the mining and exploration of critical minerals has increased in recent years, in response to the growing demand driven by the global energy transition. However, further acceleration of these investments is necessary to meet the needs of a rapid and sustainable energy transition.
#6 Diversification of the Dominican mining industry:
The mining industry in the Dominican Republic is experiencing diversification, ranging from Artisanal and Small-Scale Mining (ASM) to attracting foreign direct investment from large mining corporations, fostering economic development and technological innovation in the sector.
#7 Electric sector planning:
Significant advances in the planning of the Dominican electric sector have been achieved through the development of the National Energy Plan (PEN), aligned with Law No. 125-01 and the National Pact for the Reform of the Electric Sector, driving the modernization and sustainability of the electric system.
#8 Transformation towards sustainability:
The energy and mining industries are undergoing a transformation towards sustainability, driven by the need to reduce carbon emissions, adopt more responsible practices, and align with global Sustainable Development Goals (SDGs).
#9 Technological innovations:
The rise of technologies such as electric vehicles and battery storage is increasing the demand for critical minerals and metals, transforming global supply chains and leading to a reevaluation of the feasibility of new mining projects.
#10 Digitalization and automation:
The integration of advanced technologies like artificial intelligence, the Internet of Things (IoT), and automation is revolutionizing efficiency, safety, and sustainability in mining and the energy industry, enabling real-time monitoring, resource optimization, and reduction of operating costs.
