MercoPress. South Atlantic News Agency
Argentina eliminates tax breaks for big oil and gas companies
Argentina has cut 461 million dollars in annual tax breaks granted as investment incentives to big oil companies operating in the country, the government said on Friday, as part of a wider austerity program. Read full article
Comments
Disclaimer & comment rulesCuts and more cuts and still the books won't balance!
Feb 04th, 2012 - 10:54 am - Link - Report abuse 0Anybody suprised by this announcement? No, I didn't think so.
This was a strange one to cut though. It will halt whatever little exploration is going on and further deplete their oil reserves and slow production numbers. It is a very odd and dangerous long term policy.
Feb 04th, 2012 - 01:08 pm - Link - Report abuse 02 yankeeboy
Feb 04th, 2012 - 03:35 pm - Link - Report abuse 0'Strange' and CFK goes together.
You are correct about the damage to long term monetary stability: but will she still be there when it happens? She needs the money NOW or otherwise she will not be there anyway!
For the two experts above:
Feb 04th, 2012 - 03:49 pm - Link - Report abuse 0“Obama Moves To Cut Oil Industry Subsidies”
http://www.huffingtonpost.com/2011/02/01/obama-moves-to-cut-oil-subsidies_n_816787.html
4. The difference is we have increasing reserves, are a net exporter of oil and our oil companies are not forced to sell to the gov't for U$42/barrel.
Feb 04th, 2012 - 04:31 pm - Link - Report abuse 0Do you see the difference?
Marcos, nevermind the “experts” above:
Feb 04th, 2012 - 04:54 pm - Link - Report abuse 0Patty O'bongo says he will cut oil subsidies, but it's not going to happen since it's election time. He needs bribes, I mean “campaign donations”.
Cutting subsidies (corporate welfare) is always good for the tax payers..as you can read: Analysts said the latest measure is in the right track and impact on oil firms will be minimal.
Perhaps $US 461million is a small amount each year for PAE, Bridas, YPF, Sinopec, and Petrobras. But it has once more torn up commercial contracts between the great parent-corporations and the Argentinian government.
Feb 04th, 2012 - 05:45 pm - Link - Report abuse 0There comes a time when people start refusing to deal with Argentina, when imports and exports dry up, and the country essentially closes its borders, like Myanmar, like North Korea.
Of course China will still buy up Argentina, its land and its commodities -Argentina needs the money big-time, and eventually Argentinians will wake up and realise that they are still poor and Argentina no longer belongs to Argentinians.
The advantages of selling/buying across a spectrum of nations across the world, rather than just one big beast, are so obvious that one wonders just how big the hole is that CFK has dug for her people.
She may end up with the greatest historical legacy of any Argentinian - the woman who sold their whole nation from under their feet.
Where is [ Beef ] ....??
Feb 05th, 2012 - 09:53 am - Link - Report abuse 0Our Russian born...American educated ....friend ...!!!
who worked on Corporate Governance..Law Finance...Behaviorial Finance...Institutional Economics..
I store his real name.....!!
I heard CFK is demanding that the oil and gas field be run at full capacity! Their o/g reserves are already depleting at an alarming rate so this seems to me to be very short sighted. These people live for the day and never think about the consequences. What a disaster!
Feb 05th, 2012 - 01:51 pm - Link - Report abuse 0Commenting for this story is now closed.
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