MercoPress. South Atlantic News Agency

Argentina's crude output down for seventh year running

Argentina's oil production fell for the seventh consecutive year in 2008, declining 1.8% to 230 million barrels, according to a report from an economic consulting firm cited Wednesday in the Buenos Aires press.

The study by Economia y Regiones found that natural gas output also fell, from 1.79 billion cubic feet in 2007 to 1.77 billion cubic feet last year. Those figures "reveal the maturity and lesser productivity of the deposits" in Argentina's main fossil fuel-producing provinces, La Nacion newspaper said, citing the firm's report. Blaming the decline in hydrocarbons production on a lack of investment in exploration, Economia y Regiones said the trend would not be reversed in 2009 given the world economic slowdown and the fall in global prices for oil and gas. Argentine oil production peaked in 1998 at 309 million barrels, while natural gas output reached a high of 1.84 billion cubic feet in 2004. Argentina has proven crude oil reserves of 2.6 billion barrels and natural gas reserves of 15.77 trillion cubic feet, the country's Energy Ministry says. In recent years, growing domestic demand and stagnating production have forced Argentina to sporadically reduce or even suspend exports of natural gas to neighbouring Chile, which depends on the fuel to generate most of its electricity. Most oil concessions in Argentina will expire by 2018, the consulting company said. Annual production in the country last increased in 2001. Argentina's oil reserves peaked at 488 million cubic meters in 1999 and now stand at 416 million cubic meters, or enough to supply domestic demand for about 11.4 years, the company said. Crude oil sold for an average of 272.70 US dollars a cubic meter in Argentina last year, 53% less than the average global selling price, Economia & Regiones said.