President Alberto Fernández maintained this Tuesday that Argentina has “a unique opportunity” to develop its energy potential and warned that if it is wasted “we will not be forgiven”, alluding to the open possibilities in terms of production, regional development, fiscal balance and exports.
“We have everything the world demands today in terms of energy”, The head of state stated when speaking at a ceremony at the Casa Rosada Bicentennial Museum, together with the Ministers of Economy, Martín Guzmán; and Productive Development, Matías Kulfas; the president of the Central Bank, Miguel Pesce; the Governor of Río Negro, Arabela Carreras, and the Secretary of Energy, Darío Martínez.
In the actthe creation of a series of registries was announced to facilitate the hydrocarbon sector’s access to the foreign exchange market, subject to an increase in its production compared to 2021 levels.
The president pointed out that Argentina has “a unique opportunity for the future”, both in hydrocarbons and in “green and blue hydrogen, of which the world is demanding”, as well as lithium and copper, and warned that “if we let it pass we will have no forgiveness.”
“Argentina has a unique opportunity for the future, both in hydrocarbons and in green and blue hydrogen, of which the world is demanding”
Fernandez stressed that “the next 15 years are a great opportunity for development”, and pointed out that the boost to oil and gas production will result in an improvement in the trade balance, fiscal relief due to the reduction of energy subsidies and a boost to economic development in different regions of the country.
Rocca: “It is very positive that the country assumes the development of energy resources”
The executive director of Techint, Paolo Rocca, considered this Tuesday “Very positive” the Government’s announcement to support hydrocarbon production and said that, considering the conflict in Europe, It is important that “Argentina assumes the responsibility it has in the world to develop its energy resources and contribute to substituting the supply of energy.”
After participating in the event led by President Alberto Fernández at Casa Rosada, the Italian-Argentine businessman spoke with the accredited press and highlighted the importance of assistance to a sector that “creates jobs and contributes to the social and economic growth” of the country.
“I found it very positive considering the changed circumstance globally due to Russia’s invasion of Ukraine,” He said about the ads.
In this sense, he highlighted “the importance of reaching promotion measures such as the Gas Plan, completing the infrastructure works, and promoting investment in gas and oil.”
“I thought it was very important to mention a law that allows the realization of large projects that can sustain the export of gas and oil. These projects need private industry and require trust and stability. The President was very clear in indicating the creation of long-term confidence,” Rocca said.
The Government announced a new system of access to foreign currency for companies in the hydrocarbon sectorwhich will be able to operate in the free exchange market to the extent that they increase the production of oil (20%) and natural gas (30%).
“Argentina has a formidable opportunity, the world that is going to dawn when this war ends (alluding to Russia’s invasion of Ukraine) will demand food, not just grains, and we are going to be able to produce, industrialize and export them,” emphasized the head of state.
Businessmen and trade unionists positively received the announcements about energy development
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But he also noted that “The world today demands more than anything gas, the transition energy between fossil energy and clean or renewable energy” and in this regard he indicated that “Argentina is a huge source of gas, with immense export potential.”
After his tour of Spain, France and Germany, the president highlighted the interest of the governments of those countries in counting on Argentina as a supplier of natural gas, for which he recommended “paying attention to the liquefaction plant” that allows its transfer by sea “to put it into operation as soon as possible”.
“We are going to send Congress a law that establishes the conditions under which we promote the creation of these plants, so that everyone is certain of what the future will be like in their investments”
“We are going to send Congress a law that establishes the conditions under which we promote the creation of these plants, so that everyone is certain of what the future will be like in their investments,” raised the President.
González: “It will allow us to overcome limitations and bottlenecks”
The president of YPF, Pablo González, evaluated that the new system of access to foreign currency for the incremental production of hydrocarbons is “a good measure”, and estimated that it will contribute to the growth of the sector.
“The industry has been experiencing a great recovery, and this decision will allow a greater incentive to investments in the area and consequently in production, as well as to overcome limitations and bottlenecks,” González said in statements to the press, after the announcement made at the Government House Bicentennial Museum.
He pointed out that the numbers of the last quarter achieved by YPF “have been very good indicators”for which he considered that “this measure will help growth, which in our case presents increases in oil and gas production and equivalent barrels.”
González estimated that the measures “do not harm” the Central Bank’s dollar reserves.
“I would think not, because there will be more activity. And in the case of YPF, which by law does not have the obligation to supply the domestic market, if it grows and has more production, it will be able to export the rest and Argentina will have more foreign currency,” said the executive.
The head of YPF considered that It is “good” that access to foreign currency “is, firstly, based on the incremental, and secondly, on the supply of the domestic market”, and expressed that “the previous measures, or the drafts, were based on exports ”.
“This access is not in relation to exports, but to very important points, such as the margin of the domestic market that the companies are covering, the increase in production and something important, the decline in production from mature fields. Two thirds of the total crude oil production in Argentina is still conventional, for example, the San Jorge Gulf basin”, González explained.
Fernández thanked the companies in the hydrocarbon sector for “accepting the challenge” and in the face of possible claims for differentiated treatment in terms of access to foreign currency, he warned that “first they have to bring the dollars and they will be able to dispose of a bit of those dollars that they bring.”
“The doomsayers said that Argentina was on the way to an energy collapse, but YPF and the rest of the producers do not stop growing,” he said, as well as noting that thanks to the Gas plan “Today we save US$ 6,000 million in gas that we previously had to import.
