Oil: the source of dollars that Argentina needs

The lack of foreign currency is an Argentine difficulty thatin the course of its recent history, become a constant problem. It is not new that the external restriction (shortage of dollars for production) leads any economic model to a gigantic challenge of having to adapt to the demands of different sectors.

It is logical that the macroeconomic programs of the various governments have to deal with innumerable variables that they cannot control, especially with problems that come from abroad, such as a pandemic or a war. Therefore, it is normal for undesirable consequences to arise and for some sectors to be disadvantaged. However, this does not mean that there is no responsibility at the time of anticipate those obstacles that may appear along the way.

Argentina has competitive advantages that are being wasted. The fact that economic models do not include the energy scenario in their programs is detrimental to the entire economy as a whole. An unbalanced model leads to unnecessary conflicts and distributional offers that add fuel to the fire instead of putting it out.

It’s time to take advantage of the opportunities, get to work and make Argentina a dollar-rich country and sovereign in matters of energy. The tools for that goal are available. Y the numbers support it. For example, production records for both oil and unconventional gas were broken in May. And total oil production was the highest since November 2011. Proof that in such difficult times, with unclear indications and continuous parades of ministers, the role of the oil workforce drives the economy by generating foreign currency for the country .

The consulting firm Ecolatina has prepared a report on the energy potential based on offshore exploration and exploitation. According to the study, the hydrocarbon discoveries in the Argentina Norte (CAN) and Malvinas Oeste (MLO) basins it could be equivalent to a 3.6% of GDP source of income.

A figure of these quantities is no longer just getting the missing currencies, it is also balancing the trade balance, stimulate the generation of employment and the growth of other indirectly linked productive sectors. Put simply, the development of offshore hydrocarbon exploration, in a specific discovery, could contribute over US $ 40 billion in income over the years with the highest level of production and export of the resource.

We also add the promotion of projects on the coast of Mar del Plata, estimated by the Argentine Institute of Oil and Gas (IAPG) as feasible and safe. They can replace the import work at the Escobar and Bahía Blanca stations, transform them into export ports and supply foreign currency to the entire economic system. And all this without even mentioning the appropriate approach to Vaca Muerta’s resources and the facilities that the Néstor Kirchner pipeline carries.

All energy projects taken together, especially offshore investments off the coast of Buenos Aires, represent fundamental pillars for any economic policy. Argentina needs dollars and the energy sector, thanks to its rich export potential, is the source for ending external restrictions.

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