Oil production increased in 1956 in practically all the producing South American countries. Trinidad also showed a marked increase in production. The total production during the year was approximately 1,036,588,000 bbls. (2,832,000 b/d), which is 13% above the 911,229,000 bbls. (2,497,000 b/d) produced in 1955. The most substantial increase was in Venezuela where 1956 production was nearly 112,000,000 bbls. (307,000 b/d) more than in 1955. Following closure of the Suez Canal, Venezuelan production increased rapidly and at the end of the year had reached more than 2,700,000 b/d. In Brazil, an active exploration and development program continued. Trinidad production increased for the fourth consecutive year and offshore drilling and production in the Gulf of Paria got under way.

Exploration drilling in South America and the Carribbean area, as measured by the number of wells drilled, dropped off in 1956 when 306 wells were drilled, as compared with 635 in 1955. However, the number of development wells completed increased 17% in 1956 to a total of 2,300 wells. Wide foreign interest was evident in several Central American countries during the year, as new petroleum laws encouraging foreign investment came into effect in Guatemala, Panama, and Costa Rica. Nicaragua was also revamping its mining law to encourage exploration for petroleum.