Oil and gas production is record in the last 20 years and saves dollars

The production of crude oil and natural gas in Argentina is growing at an accelerated pace hand in hand with Vaca Muerta and the construction of infrastructure associated with the evacuation shale oil y shale gas. So, recovers records reached 20 years ago and is on its way to the best marks in the history of the country, with a significant impact on the reserves of the Central Bank (BCRA).

According to data from the Ministry of Energy, in August the production of gas reached 153 million m3 per day (MMm3/d) in what was the best month in the 117 years of oil history Argentina. The previous record had been in July of this year, with 151.87 million m3 per day, and previously we must go back to June 2004, with 151.42 MMm3/d.

In that year, the highest production of the fluid was recorded. But the energy policy of the first Kirchnerism, which broke export contracts to Chile in the midst of the post-convertibility economic recovery and a plan oriented towards domestic consumption, led to a systematic decline that only began to be reversed in 2013, with successive plans with incentives for investments through subsidies.

Meanwhile, oil production had the same path since 1998, when the Spanish Repsol took control of YPF, a cycle that deepened until 2012 and that began to revive since the contract with Chevron of the company that once again had the national State. as main shareholder.

In August 2024, companies operating in Argentina extracted an average of 711,340 barrels per day (bpd), according to Empiria Consultores records. That figure had not been achieved since 712,111 bpd in May 2004.

Based on the works that are underway, oil and gas production will continue to break records during this decade. And its contribution to economic activity and stabilization will be central.

Proof of this is that Fuel and Energy exports totaled 6,407 million dollars in the first eight months of the year, 25.5% more than in the same period of 2023, while imports fell 45% year-on-year to US$ 3,250. millions. Crude oil is already the country’s third export product, only behind soybeans and corn.

The trade surplus of the energy sector accumulates US$ 3,157 million and could reach more than 4,000 million dollars by the end of the yearto jump to close to US$ 10,000 million in 2025. Only in 2022 the result had been negative (deficit) of US$ 4,400 million.

The President Néstor Kirchner Gas Pipeline (GPNK) has already saved more than US$ 2.5 billion in one year and the reversal of the Northern Gas Pipeline, when ready, will expand those numbers with the substitution of imports from Bolivia – the neighboring country has already stopped delivering and Chile provides regasified LNG to northern Argentina – and exports to Brazil.

Likewise, Argentina will once again export liquefied gas from 2027 with the ship that will be brought by the Norwegian Golar contracted by Pan American Energy (PAE). It will be for at least 11.5 MMm3/d, with the possibility of expanding the capacity with another barge.

Regarding crude oil, YPF is currently closing agreements with PAE, Vista, Pampa Energía, Tecpetrol, Shell and Exxon to provide production and financing to the Vaca Muerta Sur Pipeline (VMOS), which will end in Punta Colorada, Río Negro.

Its capacity, fully destined for external markets and dedicated to uncovering bottlenecks in Neuquén’s crude oil evacuation infrastructure, will be 180,000 barrels per day at the end of 2026, and will grow to 360,000 bpd in 2028 and 720,000 bpd in 2030. , when Argentina crosses one million barrels of production.

With everything in operation, the country could have an energy surplus of between 20,000 and 25,000 million dollars per year and mitigate the productive complications that the climate can generate in the agricultural sector.