Deals
Macri Juggling Act Entangles Argentina's Answer to Permian
- Drillers weigh projects after tweaks to natural gas subsidies
- Changing rules overnight could be warning bell for investors
A YPF pumpjack near Vaca Muerta, Argentina, on Dec. 4, 2014.
Photographer: Juan Mabromata/AFP/Getty ImagesThis article is for subscribers only.
One of the world’s biggest shale formations is getting caught up in Argentina’s efforts to balance its books.
After a win in the Oct. 22 midterm elections, President Mauricio Macri unveiled reforms to trim a fiscal deficit seen ending 2017 at about 4 percent of gross domestic product. The result: Macri will spend less on a subsidy that natural gas drillers depended on for their shale projects. While new wells qualify, it’ll be tough for those in production to get the higher prices.