This will be an exciting year for Latin America's upstream sector. Overall spending is set to rebound with the exception of Mexico. We believe that exploration is poised to achieve success with at least one giant play opener. Argentina's Vaca Muerta is set to ramp up activity and we expect Brazil's Round 14 to be a success given regulatory improvements. By contrast Venezuela's tough economic and political situation will lead to a continued freefall in oil production. Finally we believe the Mexican government will speed up the offering of JVs with Pemex given the sharp reduction of the NOC's E&P budget. Below we elaborate on our 2017 predictions for Latin America's upstream sector.