MercoPress. South Atlantic News Agency

It’s official now: Argentine oil and gas production continues to fall

Oil production is just over 90.000 cubic metres per day

Argentina oil output during the month of January dropped 4.21% compared to a year ago while natural gas was down 0.11%, according to the latest official data from the Energy Secretary.

Crude production last January reached 2.8 million cubic metres and natural gas, 3.812 million cubic metres. In 2011 oil output was down 6% and natural gas also down 3.36%, which meant Argentina last year, had a fuels’ import bill of almost ten billion dollars.

January average daily production was 91.266 cubic metres, below the 95.023 of the same month a year ago and the 93.225 from December 2011. Natural gas on the other hand had a daily output of 123.018 cubic metres, below the 123.133 from January 2011 but in line the 123.003 of December last year.

“It comes as no surprise that Argentina has reached a critical situation in the energy sector given the combination of strong growth in the last eight years which generates more demand for energy, together with a strong fall in production and reserves” according to the consultants Econometrica.

This turned Argentina in 2011 from an exporter into a net importer of energy, with purchases close to ten billion dollars.

In that context the Argentine government for several months now is in an ongoing conflict with the Spanish owned YPF oil corporation, which is accused of insufficient investments leading to the current shortage and lower output.

The Energy Secretary reports that January last year YPF’s oil production totalled below a million cubic metres, 970.931 with a drop of 6.5% and a natural gas production of 879.1 million cubic metres, down 8.1% from January 2011.

According to Argentina’s Petroleum and Gas Institute, YPF is by far the largest company of the oil and gas industry, with 32% of oil exploitation and 23% in natural gas production.