- Challenges for Argentine oil
He December 13th commemorates the discovery of the first oil well in 1907 in Comodoro Rivadavia. The discovery, made in the search for water to supply the region, revealed an input that has been of great importance to our industry ever since.
Today, More than 100 years later, the development of the hydrocarbon industry remains fundamental to get through the 21st century, and basically for that Energy transition that we are undergoing worldwide. In about 30 years, the world will be largely powered by renewable energy.
For this reason, The time for a thriving and exporting industry with energy sovereignty is now. The benefits to the economy are obvious, as selling oil abroad brings the country the dollars it so desperately needs, and it also has to take care of internal supplies.
Since the discovery of the first well until today, the country has been intensifying its production of hydrocarbons. Although the use of oil was initially minimal, its strategic value for growth was already evident. José Figueroa Alcorta, He was President of Argentina between 1906 and 1910 and hardly knew about the discovery. had a tax reserve to protect the new resources, Decision that marked a before and after in the nation’s energy development.
A few years later, In 1922, Gen Enrique Mosconi pulse the creation of Fiscal Oil Fields (YPF), one of the most important Argentine companies first vertically integrated oil company dedicated to production, refining and marketing of hydrocarbons. President Hipólito Yrigoyen endorsed the state-owned company as a key axis in protecting the country’s energy resources.
Another recent milestone in the history of oil was the discovery of Vaca Muerta, the 30,000 km2 basin which has become the axis of the production of unconventional hydrocarbons. Its unconventional gas and oil reserves provide a unique opportunity to achieve excellent production results and attract large investments.
Challenges for Argentine oil
However, despite the long history of hydrocarbon production in Argentina, our country has not yet found a strategic direction for the development of the sector. There is potential that we are not exploiting because we do not have a clear policy on energy sovereignty. Without a regulatory framework to accompany growth, it will not be possible to derive the maximum benefit from our natural resources.
Argentina is currently in a privileged position in terms of energy resources. We have what it takes to become major oil suppliers, but there is still a lot of work to do if we are to realize our potential. For example, the infrastructure is not sufficient to supply many inland regions with energy and jobs.
Meanwhile, the neglect of conventional reserves in provinces such as Mendoza, Tierra del Fuego, Salta, Tucumán and others represents a transversal obstacle to the goal of energy sovereignty.
Our country can do much more in terms of energy exports, but it should take care of it Deepen offshore projects and improve investment conditions in the industry, as well as guarantee high-quality jobs and high salaries above inflation. Without these conditions, Argentina’s energy future will continue to suffer from the usual shortcomings: lack of planning and bottlenecks.
* Secretary General of the Argentine Federation of Oil, Gas and Biofuels Trade Unions (FaSiPeGyBio)
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