Argentina’s Oil And Gas Industry Will Survive Elections

Argentina’s shale oil and gas industry won’t be rocked by the upcoming elections, according to executives from some of the country’s top oil and gas companies.

Argentina is due to hold an election this October, but no matter who wins, the country’s oil and gas industry will likely survive, according to executives from state-run YPF SA, Pampa Energia SA, and TGS, SA, Bloomberg reported on Friday, citing this week’s earnings calls.

The overarching opinion is that no matter what the election outcome, “we would expect it to remain supportive for our sector,” according to YPF’s head of finance, Alejandro Lew.

Crude oil production from Argentina’s massive Vaca Muerta could take off, topping 1 million bpd by the end of this decade, Rystad said in May. But that was predicated on takeaway capacity and rig availability not limiting its growth. If production is unimpeded by those factors, oil production could grow from just under 300,000 bpd to more than 1 million in H2 2030, Rystad suggested. If that panned out, it would help the Neuquen region in Argentina become a net oil exporter and contribute as much as $20 billion in total revenue by 2030.

Well productivity in the Vaca Muerta shale play has already surpassed its U.S. shale peers.

Achieving a 1 million bpd production level just for Vaca Muerta would be a game-changer for Argentina’s struggling economy, which is experiencing triple-digit inflation.

Prior to the election in October, there is a primary election this Sunday that will finalize which candidates will be on the ticket in October. Voting is compulsory in Argentina, although analysts are predicting a low turnout on Sunday with anti-government anger and apathy running rampant.

But more than finalizing the candidates, the primaries will serve as a big opinion poll for voter sentiment ahead of the October elections.

By Julianne Geiger for Oilprice.com

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