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Argentina incentivizing domestic natural gas production
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Topic Started: May 20 2016, 12:13 PM (909 Views)
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W A Mozart
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May 20 2016, 12:13 PM
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SANTIAGO Petroleumworld.com 05 20 2016
Argentina's government will continue to guarantee a wellhead price of US$7.50/MMBtu for natural gas extracted from shale or tight formations, as part of a production stimulus program announced Thursday.
The energy and mines ministry published resolution 74/2016 in the official gazette, guaranteeing the price for any unconventional gas, as well as conventional gas from discoveries made after January 2013.
Drafted by the government of President Mauricio Macri, the measure replaces a similar program implemented under his predecessor, Cristina Fernández de Kirchner.
Amid a global supply glut of natural gas, the idea is to incentivize domestic production – particularly from the Vaca Muerta shale and other unconventional formations – so that Argentina can reduce its hefty natural gas import bill and return to energy self-sufficiency.
Producers will be able to lock in the US$7.50/MMBtu price for new projects until December 31, 2018.
http://www.petroleumworld.com/storyt16052002.htm
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W A Mozart
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May 20 2016, 12:19 PM
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Now, speaking strictly as a conservative, locking-in an oil price for over 2 years is usually not a good a good idea. But, in this case, it has some merits. The Macri government knows that gas prices are unusually depleted right now. Gas is the future, natural or liquified.
But, the difference between what the Kirchner's did, and what Macri is now doing, is worth noting.
According to the article:
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The difference between the Macri and Kirchner governments, in terms of natural gas pricing, is that Kirchner subsidized consumption as well as production of the hydrocarbon.
Since taking office, Macri has dramatically scaled back subsidies for residential gas consumers, citing that rates paid by consumers should more closely reflect real production costs.
National oil company YPF reported its first-ever sequential decline in shale hydrocarbon output during the first quarter, but said that tight gas now accounts for 20% of its total gas production.
Mozart
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Che On The Rocks
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May 21 2016, 07:38 AM
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- W A Mozart
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Now, speaking strictly as a conservative, locking-in an oil price for over 2 years is usually not a good a good idea. But, in this case, it has some merits. When Cristina did it, you thought the opposite. 
- W A Mozart
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But, the difference between what the Kirchner's did, and what Macri is now doing, is worth noting. It is worth noting that now, Argentina has one of highest fuel prices in the World:

 This has a lot of do with the current Argentina recession. Thanks, Macri! 
Oh, there is a little issue, besides:
Argentina’s Energy Minister is stealing for the Crown- Quote:
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The claimants complaint also alleges that the Energy Minister has put Shell in a position of privilege, as he last week has announced that Bolivia cannot meet its obligations to Argentine, and begin to buy gas in Chile, a country which doesn’t produce the fluid and imports it from East Asia. Bolivia’s Energy Minister has immediately refuted his Argentine colleague and stated that his country is sending agreed normal quantities. The explanation for this import lays in the fact that the gas transportation toward Argentine is in charge of British Gas (BG), bought by Schell in last February. This gas is 128 percent more expensive than the fluid imported from Bolivia.
 Thanks, Macri, again!
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Free Milagro Sala! What happened to Santiago Maldonado? What happened to ARA San Juan? Mapuche Lives Matter! Stop the political persecution in Argentina! Stop the looting of Argentina!
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Che On The Rocks
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May 25 2016, 05:46 AM
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Steep increases in price of natural gas Bariloche residents take to the streets to protest hikes- Quote:
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Citizens of Bariloche yesterday staged a massive protest at the city’s Civic Centre to protest steep hikes in natural gas prices. The move came hours after Mayor Gustavo Gennuso filed a preliminary injunction request to freeze the increases.
“We received natural gas bills with increases of 1,000 percent,” Gennuso told Radio 10. “Those paying 700 pesos a month are now paying 4,000 or 5,000 pesos for the same service.”
A small hotel billed 3,000 pesos a month is now paying 60,000 pesos a month, he said.
 ^^^"Not to the hikes. They are killers".
Governors reach deal over natural gas hikes- Quote:
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Aranguren announces cap on increases after pushback from Patagonian leaders
The national government has announced a cap on hikes to natural gas prices for the country’s southernmost provinces, after pushback from governors, the Judiciary and even local demonstrators prompted Energy Minister Juan José Aranguren to reconsider the scope of his most recent reforms.
According to provincial leaders, hikes were in some cases, equating to rises of 1,800 percent, putting families at risk due to below-zero temperatures and damaging businesses’ profitability.
“We decided that no Patagonian resident will pay hikes above 400 percent,” Interior Minister Rogelio Frigerio said yesterday. “Small- and medium-sized companies will also pay only 50 percent of the hike and the difference will be financed over the next two summers,” Frigerio added.
 Interior Minister Rogelio Frigerio and Energy Minister Juan Aranguren attend a press conference yesterday.
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Free Milagro Sala! What happened to Santiago Maldonado? What happened to ARA San Juan? Mapuche Lives Matter! Stop the political persecution in Argentina! Stop the looting of Argentina!
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Che On The Rocks
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Jun 2 2016, 07:49 AM
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Argentine Gas Workers Strike to Protest 600% Price Increase- Quote:
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Labor unions from Argentina’s energy sector are protesting the policies imposed by President Mauricio Macri.
 A union leader speaks to workers during a demonstration against Argentine President Mauricio Macri's policies in Buenos Aires, April 29, 2016 | Photo: Reuters
Argentina backpedals on gas rationing measures for industry- Quote:
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Argentina will loosen gas consumption restrictions announced this week, the Energy Ministry said on Wednesday, a day after ordering industrial producers to reduce gas usage to zero to ensure supply for households.
Argentine rulings may endanger government's utility price hikes- Quote:
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An Argentine judge said on Wednesday he had ordered electricity companies not to cut services to consumers who fail to pay sharply increased bills, the latest of several judicial decisions that may endanger President Mauricio Macri's plan to help battle the fiscal deficit with utility charges.
Macri took office in December vowing to put public accounts in order amid high inflation and a peso devaluation of 26.5 percent shortly after he took office, in part by cutting generous electricity, gas and water subsidies put in place by the previous center-left government.
Gov’t takes hikes battle to S. Court- Quote:
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Request filed asking top legal authority to remove injunctions blocking utility increases
 Interior Minister Rogelio Frigerio (centre) meets with governors to discuss rate hikes yesterday.
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Free Milagro Sala! What happened to Santiago Maldonado? What happened to ARA San Juan? Mapuche Lives Matter! Stop the political persecution in Argentina! Stop the looting of Argentina!
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