Will Argentina’s Oil Boom Deliver It From Economic Crisis?
To seize a remarkable opportunity before hydrocarbon demand peaks, it must somehow keep its trademark political volatility and mismanagement in check.
Drilling for deliverance.
Photographer: Emiliano Lasalvia/AFP via Getty Images
A fresh breeze is cutting through the dysfunctional miasma that envelops Argentina’s economy these days — and it’s coming from the country’s oil and gas industry, of all places.
Powered by a large shale deposit in Patagonia, oil production is increasing at a double-digit rate, companies buzz with new projects to boost exports and natural gas output and industry executives are looking ahead to the upcoming presidential election with high hopes for an improved business environment. Some of the stocks most exposed to Argentina’s hydrocarbon business, such as national champion YPF SA and pipeline operator Transportadora Gas del Norte SA, are up more than 300% in dollar terms in the past 12 months. The start of a new, 573-kilometer (356-mile) gas pipeline is also expected to save billions in energy imports, one of the biggest policy headaches of recent administrations.