Argentina on an Ascending Cycle Within a Descending World Cycle for Hydrocarbons

The world is going to phase out coal in favour of gas in the next 20 or 30 years, there is no other alternative. The best combination is to eliminate coal and use gas, which is one of the fundamental developments in Vaca Muerta, South Santa Cruz and offshore off Tierra del Fuego. The other way is the transition to less-polluting liquid fuels. 30 more years of a world dependent on hydrocarbons and only in 2050 would the true decline begin, with different stages in each country. Argentina is one of the countries that is most hooked on the gas-based transition. It hardly consumes coal and it is an advantage in favour but also advance with other renewable energies. Argentina has potential in this field, because Brazil did not find as much gas as it did offshore oil, then the gas from Bolivia is not so much, although with the decline of Loma La Lata, with Brazil and Chile that had no gas at all, the true backup is in Argentina.

Expert also highlighted the approach by the United States at gas production and explained Argentina was far behind. The consolidated experience is the work in the United States, which was done with fortunes of money from the State. Their current situation is the result of having tens of thousands of wells built in recent years, with many subsidies from the State. Larger investments are needed and not many givers are around. When the oil companies have the resource and the market, a lot of financing offers to appear. The private sector should focus on handling reliable data and not putting together fictitious stories or accounts for five wells. They must propose to make an appropriate risk investment, as some companies have already done to experiment with the Argentine shale. They must bring the best and largest amounts of options to establish which is the most appropriate strategy.

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