Investing in Energy: A Primer on the Economics of the Energy Industry

Regulatory Frameworks

Sovereigns that are interested in attracting outside investment have opened up their regulatory frameworks and encouraged exploration and development work by outside private corporations.

Smaller countries such as Colombia and Peru have aggressively liberalized their energy framework to outside investment. This practice has proven economically beneficial to both countries. As a result, Colombia and Peru have approximately 75 concessions operating in each country, and both countries have permitted outside investors in oil and gas to repatriate funds and assets back to their home countries. The Colombian and Peruvian governments have actively courted the energy sector in North America and Europe. Later in this chapter we will ...