MercoPress. South Atlantic News Agency
Energy deficit is Argentina has become dramatic, admits YPF CEO Galuccio
Argentina is now facing a shortage of light oil for refining Argentina’s oil and gas corporation YPF CEO Miguel Galuccio admitted that the ‘energy deficit’ of Argentina has become a serious challenge since the country has started to face a serious shortage of light oil for refining.
This shortage has to be added to the natural gas deficit admitted Galuccio before 300 oil industry leaders during the Latin American Oil & Gas summit forum held in Houston, Texas considered the oil international capital of the world.
CEO Galuccio said that although YPF has the Vaca Muerta shale deposits to develop, one of the largest in the world, oil extracted from Argentine wells, the Medanito light oil, the best refining quality in Argentina, has dropped dramatically in the last twelve months.
In effect in 2008 Neuquen province provided an average of 23.959 cubic metres per day of Medanito oil, but by 2012 the volume had dropped 26% to 17.540 cubic metres.
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Read all commentsWhen I was in Argentina in 1967 in Neuquen Province oil was leaking from all the nodding donkeys that I saw. It was explained to me that regular maintenance was not a high priority. Well ( notice pun here ) it does not surprise me that production is slowing. Do wish that Argentina would get it's act together. Most officials I met were all about saving face and blaming someone else. This I have to admit is largely a Latam trait. Please feel free to correct me if I am wrong.
Sep 14th, 2013 - 02:24 am 0Now there's a surprise.
Sep 14th, 2013 - 02:34 am 0It's not a surprise that oil production is reducing rapidly. Since Repsol was booted out, the employees could not give a damn about doing their job properly. Why should they? They are not being paid as reliably, so they have no reason to do their job properly.
Sep 14th, 2013 - 06:16 am 0We all know that oil production dwindles over time. Extraction becomes harder when the wells start drying up. Less & less is pulled out of the ground and you need to employ even more drastic measures to get the last few drops up.
Argentina is now paying for the stupidity of the Mad Bitch in the Casa Rosada. As the domestic oil production drops, they become more dependent on foreign imports. But the Arabs want hard cash, not promissory notes that are never paid. They are fully aware of Argentina's poor credit record, their tendency to renege on contracts and refuse to pay their debts, that they want only payment up front in hard currency - preferably dollars.
Soon, the massive pile of dollars that Argentina has stolen from their own citizens will be depleted. Argentina will have to pay the holdouts or they will be denied any further IMF help. The Supreme Court has noted TMBOA's attempts to circumvent the courts jurisdiction and they will order Bank of New York Mellon to pay NML and the others in full.
It's likely that the inability to obtain oil supplies (except from Venezuela - who will have their own problems) and the refusal of the IMF to help, will bring about the Mad Bitches fall. When industry grinds to a halt through lack of fuel or electricity, then someone will take action to string the bitch up from the nearest lamppost - unless she's already escaped on her private jet.
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