Argentina on the verge of “unprecedented energy shortage”, say former ministers
Argentina’s Energy Institute, IAE, warned that the country faces an “unprecedented energy crisis” with strong drops in hydrocarbons reserves, production and the loss of self sufficiency.
IAE made up of former Energy ministers said in a release that the current energy situation in Argentina is no surprise: it was expected since there are “no long term policies for the industry, a total lack of planned strategy and an inadequate implementation of serious policies”.
According to IAE since Nestor Kirchner took office in Argentina in 2003 and until 2010, oil reserves dropped 6% and natural gas 41%. In the same span of time oil production fell 18% and gas, 7%.
“We have become net importers of natural gas, fuel oil and gas oil with demand and tendencies increasing which presents an unprecedented and unsustainable fiscal effort plus an accumulation of social demands still unsatisfied”.
IAE proposes an integral auditing of all exploitation concessions and hydrocarbons exploration licenses, debating a new Hydrocarbons bill and creating a new national oil corporation to manage the State’s interests.
The document follows a recent attack from President Cristina Fernandez on oil companies, particularly YPF, Argentina’s largest, for the alleged lack of investments to help a greater production of hydrocarbons.
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Argentine labour accuses CFK of “escalating repression” and endangering human rights policy
She`s really got her work cutout to convince the people that the falkland Island is the answer, its like an alcoholic trying to convince a therophist that the answer lies right at the bottom of the bottle.
Couldn't have put it better myself!
Sums up the way CFKC manages the country.
I was near Cordoba last winter and there was a very serious shortage of energy for heating. I am guessing it will only get worse this year.
Also, the statement “no long term policies for the country, a total lack of planned strategy....” shows her lack of basic managerial skills. Anybody who has managed even a small team can do this. But she's setting Argentina on a new course of prosperity right? Uh huh...
BTW the HUGE o/g discovered recently needs to be extracted by fracking, Arg has no knowledge/experience of how to frack. It is extremely dangerous and tricky. Good luck getting it out of the ground without some sort of help from a multi-national oil company not the idiots running Enarsa.
From the last count ARG is still 3 LNG shipments short of the projected usage this winter, they better get with it or it is going to be a cold winter.
You say:
Who do you think owns BP, Exxon, Andarko etc? Governments?
Gosh your dumb!
I (and Wikipedia) say:
As a group, the “Supermajors” (BP (UK), Chevron (USA), ExxonMobil (USA), Shell (Netherlands &UK) and Total (France) control about 6% of global oil and gas reserves.
Conversely, 88% of global oil and gas reserves are controlled by the OPEC cartel and state-owned oil companies, primarily located in the Middle East. A trend of increasing influence of the OPEC cartel, state-owned oil companies in emerging-market economies is shown and the Financial Times has used the label “The New Seven Sisters” to describe a group of what it argues are the most influential national oil and gas companies based in countries outside of the OECD, namely CNPC (China), Gazprom (Russia), National Iranian Oil Company (Iran), Petrobras (Brazil), PDVSA (Venezuela), Petronas (Malaysia), Saudi Aramco (Saudi Arabia).
en.wikipedia.org/wiki/Supermajor#Composition_and_present_status
Gosh..................... Who´s dumb?
Then either we are all lying, or you are totally institutionalised.
.
read the question .... thicko......
Speaking of 'thick' I hope you have lots of blankets laid in for the coming winter....
Since it takes about 10 years to find and develop a gas field I wonder what their plan is...oh wait they don't plan.
The fell in the reserves of oil and gas, is not only an argentine problem, it happens in others countries, like the u. k. and u. s. a, or why do you think that there are wars in others places of the world by those nations?, dont be so miopic, and dont criticise only our country just because you dont agree with c. f. k's policies, i dont deny that surely her government made mistakes respecting the energetic policy, but the privatization of the former statal company (ypf), is one the most terrible remoras that we still have since menem's neoliberal decade.
The Ks DESTROYED your oil/gas exploration by being too greedy, greedier than an AFRICAN nation! This is another nail in the (economic) coffin as one person here likes to say.
How are the teacher salary negotiations going? 3 weeks until classes start right? Do you think your increase is going to keep up with INDEC inflation or real? Even an 18% raise is a huge loss in buying power.
And nothing gets you nowhere.
.
I think you may have just misunderstood what the teachers are doing here.
With inflation at 25% and shortly to be 35 - 40% being offered 18% is a pay cut. They are not being greedy for holding out for more.
Whatever they settle at it will be too little before the end of the coming education year and the next round of negotiations.
If I were a teacher or any other fixed income worker in Argentina I would want at least 40% just to stand still (effectively NO raise).
That is the reality for teachers (and others) in Argentina.
Yes I should have added the Argentina government,
Not the workers,
My humblest….
.
Good idea on the 100% but I don't think they do them in my size. :o)
... when even the Queen of England discloses hers, I think lottery winners are richer these days.
Isn't it strange that the article says nothing about the gas reserves found like a year ago??
The word “attack” is not proper for the relationship between the National Government and YPF. These companies are being very LAZY, the country is growing very fast and energy is needed. So they better get to work.
After all... Argentina's production of hydrocarbons and YPF itself began in the first years of the XX Century and grew strong as different initiatives from different governments.
So if the private sector wants to go on dealing with this industry in Argentina it would be fair that they could keep up with efficiency and investments the same or better than the Argentinian State could do.
“So if the private sector wants to go on dealing with this industry in Argentina it would be fair that they could keep up with efficiency and investments the same or better than the Argentinian State could do.”
Well, as the PRESENT Arg State couldn't run a whelk stall if they tried you would all be in the shitter! Oh, just remembered you ARE in the shitter.
“Argentina on the verge of “FIGURING OUT HOW A TROUSER PRESS WORKS”, say former ministers”
“Argentina on the verge of “RESORTING TO DINING ON SHOES”, say former ministers”
This I could carry on all day.
Although you change your nick name, this is evident that you'll always be the same ignorant who handles such partial information, i can understand that it's a placer for you to read this kind of mediocre and hipocrite analysis, but unfortunatelly you have no idea about how missinformed you are. Like i told you before, i dont deny that surelly the government made mistakes respecting the energetic policy, but it since a few years, the exploration was resumed, and in the last two years were found the most important reserves of oil and gas in years, now, they basins must be exploted, and that's why the government must push the corporations, in order to achieve that they start to explote the reserves. And respecting the salaries of the teachers, everyyear there are problems with the colective negotiations, but everyyear our salaries are rased more than 22%, which is bigger than the inflation level, so inform your self better, or you'll continue being the same rediculous who handles so partial information.
That gas field requires fracking Arg and YPF have never done it, don't know how to do it, and you'll be lucky it anything happens with that field for 10 years.
I hope you meager raise can pay for the 500% increase in your nat gas bill this winter.
The inflation level, which is measured by those so called private analists, was not more than 25% for 2011, and most rases were higher than 25%, beside most middle class like me, will be able to keep the subsides for the services of gas, electric service, and water, anyway it's probable that i renounce to the subside for the water service, because it's not so expensive, i inisist, inform your self better, instead of parroting partial information.
If you think the “middle class” will be able to keep subsidies through the end of the year you are about as dumb as they come.
BTW I bet inflation will be 35%+ this year, with a HUGE peso devaluation coming in the 2nd or 3rd quarter.
Read again, it soposes that the inflation level was no more than 25%, according to those so called private analists, and most rases in our salaries were more than 25%, we didn't loss anything of our buying power. Beside, dont be so ignorant, and dont compare your country with mine, it's obvious that your buying power, even if you are still in crisis, will be higher than our's, yours is a developed nation, and mine is a development country, only an ignorant like you can make such a rediculous comparison. On the other hand, it's the government the one that told the society that it will keep the subsides of the services for most middle class.
So, every business in Argentina would have to have increased profits by approx %50 in order to match this on it's balance sheet.
Is this something you see happening? really?
I would like to know what would a HUGE peso devaluation be for you.
We have heard this fake rumors all these years and nothing happened... Maybe you have a good reason for your statement. I am not being ironic, I can't really tell the future.
On the other hand, I would like some of the people commenting here to talk something more apart from “inflation” Inflation is not good for salaries, we know it, but IT IS NOT THE ONLY VARIABLE!
If you don't have inflation but you don't have companies investing it is not good. If you don't have inflation but they are cutting down your salary like in Greece, Spain or Italy it is not good. If you don't have inflation but social care programs are forgotten it is also not good.
And I would like all these that relate Argentina ONLY with inflation to talk about huge international american corporations that also cause inflation. And they cause inflation on basic goods like FOOD.
FOOD's prices have increased a lot since the end of the 90s. If the 1st world economies had invested in production in stead of financial speculation they wouldn't have cause INFLATION allover the world. And so many workers wouldn't be suffering such a strong crisis in different countries now.
Hmm, so the Ministry of Truth says that rather than the economic isolation that is a keystone of Peronism causing the inflation, nor the direct actions of the Kerchnerist government, it's the fault of “someone else”. Why not just blame to inflation on the Falklands while you're at it?
I love how propagandaised weak minded fools always blame someone else for their troubles.
Just take a look at axel and fermin's dumb comments and you'll see what I am talking about.
It does seem like the economics of the madhouse. But why does that not surprise me? :o)
The inflation level is in general, it includes many products, not only food. I dont deny that inflation provokes poverty, but it happens only as long as the rases in the salaries, are lower than the inflation level, it's not the situation of argentina, we had last year an inflation of 22 or 25%, and most rases of the salaries were higher than that. On the other hand, the inflation needs a very ample discussion, it has many reasons, specially the oligopolic groups that we have in the most important sectors of the economy, which dont invest enough, send the money to the foreign, and increase the prizes of the products, those enterprises win so much money in argentina, but most them send remitances to the foreign, this behaviour has a reason, and the truth is that most bussiness men dont trust the economy, due to all the terrible crisis that we had in diferent moments, but they have to realise that the situation is very diferent now, and it will take time surelly, because it's a cultural problem.
Let's see what happens when the IMF audits the last 8 years to find that inflation is 2-3X higher than what has been reported and GDP is actually 1/2 to 1/4 of the gov't number. It has all been lies and shortly it will be proven.
Missinformed and terribly partial as usuall, what kind of isolationism are you talking about?, if you mean the fact that we dont ask for credits to international the market, like we used to do during many years, then i want that so called isolationism. Respecting the capital restrictions, it's necesary to regulate capital out, all the countries do it, regarding the decelarating conomy, it's expectable, most world is in crisis, and it's obvious that it will prejudices us in some moment, anyway the economy will grow this year bewten 5 and 6%, las year it expanded 8, 8%, what you dont tolerate is the fact that we are not in crisis like your so called developed world. Respecting the depreciating currency, it's necesary too, because we must keep the competitivity of our products, beside, you should know that last year, due to the incertitude for the elections time, a record flew from our economic sistem, however the economy didn't colapsed in absolut, finally regarding the rampant corruption, all the cases are under process, and the goods of the suspected poeple were restrained by the justice, i dont how those cases will finish, anyway it doesn't impide the economic expantion, beside, dont be so hipocrite, dont you have corruption cases in your country?, do you live in paradise?.
I just can't believe the gov't actually lets you educate children, oh wait they want the population dumb and gullible to believe the lies. AHA I get it! Axel I pity you like the slow witted child you are.
Let us see if the numbnuts can work this one out AND relate it to expansion and inflation shall we. Somehow I don't think they will.
”Annual income twenty pounds, annual expenditure nineteen pounds, nineteen shillings and six pence, result happiness. Annual income twenty pounds (expansion 9%) , annual expenditure twenty pound ought shillings and six pence (inflation 25%), result misery.”
Charles Dickens, 2David Copperfield2 (and he was not the American illusionist).
”Fueling that growth (9.8%) and inflation is government support for annual wage increases of 30 percent or more.”
Hmm.. brazil printing printing argentinian money.
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