Inaugurating this Thursday the Seminar “Presalt and Vaca Muerta: the new energy reality of Brazil and Argentina”, the Secretary of Energy, Gustavo Lopetegui, was confident that "This year the energy trade balance will be balanced» and assured that hydrocarbon exports «will continue to grow» in the coming years. The event was held in Buenos Aires, at the headquarters of the Brazilian Embassy.
At the beginning, the Brazilian ambassador to Argentina, Sérgio Franca Danese, said: “Energy is important because if we manage to lower the price we can strengthen production processes and create more integrated markets.".
Learning from the Brazilian neighbor
The president of CARI (Argentine Council on International Relations), Adalverto Rodríguez Giavarini, asked that we take advantage of the Brazilian experience to begin developing offshore exploitation in the Argentine Sea.
From stagnation to growth in the energy sector
In turn, Lopetegui said: “Argentina has been stagnant since 2011. We were able to transform an energy surplus of 6 million dollars in 2006 and 7 years later we turned it into a deficit of 7 million dollars. We took 13 million dollars from the Argentine economy in a perfect export substitution program that has left the country with tremendous fragility.”. He stressed that in 2019 our country will achieve a balanced energy balance and we will export."I believe that both countries have been able to be at the forefront of technological development in the agro-industry and to be two agro-exporting powers. Both countries have been able to be leaders in development and exporting powers in the agro-industrial sector, and that must also be replicated in the energy sector."
He also noted that Vaca Muerta is one of 20 formations identified on the planet by the United States Department of Energy with unconventional hydrocarbon resources.
«But it is one of the few cases that could be exploited quickly because the country was able to transfer cutting-edge technology developed in recent years in the United States and because we have 100 years of activity in the sector, an ecosystem with national and foreign companies, contractors, technicians, workers, engineers and an adequate regulatory framework."the secretary assessed.
Lopetegui insisted that Argentina and Brazil ""They have a very big opportunity" in the sector, but warned that this requires "continuity of policies, stable macroeconomies and access to capital to finance investments"«.
From consumer to energy exporter
The Undersecretary for Energy Planning, Luciano Caratori, confirmed that hydrocarbon exports will increase in the coming years, based on the projected higher production. “The total energy supply will go from 80 Mmtoe (thousands of millions of tons of oil equivalent) in 2018, to 87 or 98 million in 2030, according to different scenarios that propose differential growth.«.
"In the case of oil, the growth outlook until 2030 is between 5,2 and 7% annually, while natural gas production would increase at a rate of 4 to 4,7%, in both cases with a strong contribution from non-conventional resources, which today represent 15 and 22% of the total supply, respectively.”Said the official.
He added that in the coming years "there are no plans for expansions in the oil refining fleet and export volumes will be above 600.000 barrels per day: there were already shipments of light crude oil in February and there will be more movements in the short term."
In natural gas, Vaca Muerta will add production "from what we hope will be a successful tender for offshore areas", Caratori said.
The limits of transport, for now
He warned, however, that exports in this case encounter limits both in terms of demand and transport, but he trusted in the actions to expand the capacity of gas pipelines and in the liquefaction plant projects that are being evaluated.
Caratori confirmed that "This year, or at the latest next year, there will be a balance of trade" and indicated that "we already had a surplus in the first quarter, but we will have a deficit in other periods due to increased local demand."«He also highlighted the projects to increase the transport capacity of the Neuquén Basin and become exporters by building two mining plants.
He also highlighted the projects to increase the transport capacity of the Neuquén Basin and become an exporter by building two extraction plants.
Roberto Ardenghy, Chief of Staff of Petrobras, considered the problem of corruption in his company to be very serious. Corruption at Petrobras was not only a moral problem but the cause of enormous damage to the company.
From occasional export to systemic export
Miguel Gutiérrez, president of YPF, said that oil exports are becoming a reality in Argentina. For now, they are occasional operations and work must be done to make them systemic. Regarding integration, he said that by using the existing infrastructure, Argentina can recover the markets of Chile and Uruguay.
According to Gutiérrez, for regional economic integration we have the advantage of having this existing structure and he mentioned the environmental concern in the decisions of companies, an issue present in all economic activities.
Based on Techint's experience in Peru, the use of the legal contract respected by several successive administrations was mentioned, an experience that could be used to develop Vaca Muerta gas in Argentina.
There was a consensus that Vaca Muerta is the best project Argentina has for the next 5-7 years, as mentioned by Miguel Gutiérrez, for which the importance of a balanced macroeconomy was highlighted.
Argentina currently imports Bolivian gas, but has not made any efforts to boost shale production and natural gas supply. Contracts for the construction of the 2019-kilometer gas pipeline, which will carry natural gas from Vaca Muerta to Buenos Aires, are scheduled to be awarded in 1200. The contracts are budgeted at 1.800 billion dollars.
In summary, the meeting highlighted the potential of the national reservoir, whether Vaca Muerta or future exploitations on the continent and off shore (in the Argentine Sea). On the other hand, the need to generate macroeconomic policies to stimulate investment in the hydrocarbon sector, both national and international, was made clear. Once self-sufficiency is achieved, we can think about future exports that will allow the generation of genuine income for our country.
What is Vaca Muerta?
Dead cow It is a geological formation located in the Neuquén basin, southwest of Argentina, considered one of the largest sources of shale gas in the world. Studies carried out by Yacimientos Petrolíferos Fiscales (YPF) of Argentina indicated that the geological formation has enormous potential to obtain gas and oil, which according to an international report by the EIA (Energy Information Administration) of 2013, will mean multiplying Argentina's current reserves by 10 times.
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