“The problems show that there is a lack of investment in energy”

The IDEA colloquium will move from now on to Neuquén. From there, near Vaca Muerta, a meeting dedicated to energy transfer will be held. In mid -2019, there was a similar event that caused controversy. Gustavo Lopetegui – who was Secretary of Energy – beat Guillermo Nielsen – at the time, the economic sword of Alberto Fernández, who later became president of the YPF, and resigned – about the need for the Frente de Todos to show that they believe in capitalism.

In IDEA they say there has been an interest, from that moment on, to continue debating the future of energy. “Now just talking about Vaca Muerta, or just talking about hydrocarbons is not the right approach. So let’s talk. energy transfer, with the logic that we believe the oil industry. Contrary to what some people think in a very superficial way, the industry needs it big investment in the coming years and that is inconsistent with having a transition agenda, in line with emission reduction commitments ”, explains Daniel González, executive director of IDEA, and former CEO of YPF until 2020.

The Minister of Economy, Martín Guzmán, the Secretary of Climate Change -Cecilia Nicolini, the Secretary of Energy (Darío Martínez), along with Governors Omar Gutiérrez (Neuquén) and Gerardo Morales (Jujuy) are some of the authorities in attendance. They also expect leaders of YPF, PAE, Vista, Exxon, Chevron, Tecpetrol, Pluspetrol, among others. Here is a fragment of the interview with González.

-Is the country’s energy development compatible with the climate change agenda?

-Argentina has the resources and needs to continue investing in increasing the percentage of renewable energies, finding a way around biofuels. No one doubts that climate change is one of the major challenges facing humanity. And that the energy sector is responsible for most of that impact, and needs to manage most of the solution. But we don’t want to fall into the easy way of saying properly “bye, now hydrogen is green, enough is Vaca Muerta”. Argentina has a tremendous opportunity to develop oil and gas.

-Will that possibility of growth end in 2030 because of how the global energy transfer agenda took place?

-That chance is in ten years now, but I don’t know if it’s the next 50, maybe not. The global energy matrix will continue to change. CEOs of all companies (operators, gas infrastructure, renewable energies, biofuels) will attend our event. We’re going to talk about electric mobility, we’re going to talk about hydrogen.

-Why do you think the energy sector is being heavily criticized by environmental NGOs?

-This is a sector that is very shallow and not deep targeted. For this reason, we want to deal with it seriously and, above all, in a very pragmatic way. The 12 major oil companies in the world have developed the Oil & Gas Climate Initiative. They came together a few years ago to address this issue. “OK, we’re part of the problem. How can we be part of the solution?” the idea. Bjørn Otto Sverdrup, Chairman of the Executive Committee (of the Oil & Gas Climate Initiative) will open the event with me and provide his focus.

-The reality of energy has changed in recent months (due to Russia’s invasion of Ukraine). Did that force you to change the agenda?

-Since December, when we started putting together this event, we have seen the problems of this winter and it seems to me if you ask the major energy experts, they will tell you the same thing in 2020, 2019 or 2018 (about gas problems). I mean, we knew we were going to go in this direction for a long time.

-And isn’t there a risk of talking about the future when problems are just around the corner yet to be resolved?

-That the problem is imminent is a way of showing what will happen if we do not invest heavily in the sector. Oil and gas companies should be required to do something different in their operations, so that they have lower or no emission levels, but without hindering their development. The gas restrictions we have this winter are a sign that we need to invest heavily.

-Do you think Argentina is wasting its potential energy?

-25 years ago, Argentina exported between 300,000 and 350,000 barrels of oil per day and now it exports 50,000. The wealth (oil) is there. If Argentina returns to its previous oil exports, its total exports will increase by 20% and 25%, respectively. The external restriction has been reversed and with oil alone, I’m not talking about gas, which is another story, and it will also contribute more.