Argentina denies plans to intervene the energy sector: “only ensuring investments”
Planning Minister Julio De Vido denied that the Government plans the “intervention” of the energy sector and clarified that “we demand investment and production plans. This is not an intervention, simple more planning.”
De Vido added that the reference cost of fuels “will be defined within the framework of the economy in general, because it affects the cost of goods,” and said that energy production is a matter of national interest.
Deputy Economy Minister Axel Kicillof, who masterminded the nationalization of leading oil company YPF, will oversee an energy investment plan that tightens control over private companies, the government said last Friday.
Oil companies operating in Argentina will have to present an annual investment plan, and they could face fines or other sanctions, such as the withdrawal of concessions, if they fail to comply, a decree in the Official Gazette showed.
Decree 1277 establishes the criteria that will rule operations in the domestic market and mandates the periodical publication of reference prices for each of the costs’ components, plus reference sale prices for hydrocarbons and fuels.
The prices will cover the costs of oil production plus “a reasonable profit margin”.
The purpose of such a decree to adapt the activity of a sector “to the national plan of hydrocarbons investments” which will have as strategic axis the increase and maximization of investments in exploration, exploitation, refining, transport and hydrocarbons trading in such a way that it ensures self-supply.
The decree is part of the implementation of the Hydrocarbons Sovereignty Bill approved last May and which opened the way for seizing 51% of YPF from Repsol, based on the argument that the Spanish corporation was not investing sufficiently.
The bill declares of national public interest achieving self sufficiency of hydrocarbons, its exploration, production, industrialization and transport and trading.
Argentina’s fuel imports’ bill is expected to climb to 12 billion dollars in 2012, three times as much as in 2010.
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Is this the Juche idea?
Here's a thought; if you want the energy sector to make investment....then PAY your energy bill, you can demand whatever you want but if they ain't got the money then they cannot invest.
Oh yes and how about 'asking' rather than 'demanding', it's the private sector, if you don't pay them then make demands they'll simply give you the finger.
How easy it is now that profit is declared illegal and subject to confiscation or merely held in the company's accounts until the gov't says it is ok to do something with it.
CFKs minions are like monkeys with guns.
Nice articles over the weekend on how Anses is now bankrupt and doesn't have enough cash flow to pay pensions for a year. Let's see how that works out as gov't revenue is now not even keeping up with the inflation.
Also they're predicting a yoy 55% increase in the supply of money. Anyone want to guess what inflation will be by the eoy? Anyone?
And interestingly they are still citing Anses as the cash cow that will help pay for everything. Just pumping it full of pesos and then using thoses pesos as collateral will not help anything but inflation. A friend who is quite high in a bank in Arg (above MD level) told me that the government is no longer even pretending that the funds are coming from Anses, is it just being pretty much wired straight from the printing presses...50% at the moment looks to be a middle guess, he said that it could almost be considered conservative...
CFK will demand more and more pesos be printed to make up for the HUGE deficits the gov't is running. It is her only options,
Hyperinflation is right around the corner.
This crash will be spectacular!
And this kind of collapse can hit a country for a generation...
This is going to mess up the currency because their % are all screwed up and there is relatively nothing supporting the peso.
The Paris club is not going to wait forever to get paid either and they want their U$ 9B+ in one payment.
What a great learning experience I am getting!
Got Rain?
First of all the drought for us is not good but certainly not devastating to our economy. They are predicting that food prices MAY rise 2-3% which is irrelevant to most peoples monthly expenses. We spent relatively little on food costs as a relation to our monthly wage.
You have seen Soy spike then go down but who's knows where it will be when your Soy crop comes in or if your crop will be any better than it was this year? Plus your stupid President is f'ing up the futures market which will probably mean LESS SOY will be planted this year.
A year is a long time in Argentina. The peso could be 15/1 at this time next year or 100/1 who knows.
So it can rain or not rain it won't effect my life one way or the other.
Did they win the Word Cup or something?
hahaha
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