The productivity of Dead cow and the price increase international energy companies allowed Argentina double the value of the exports of oil in 2022 Over the previous year.
According to Argentine Stock Exchange, the country exported the equivalent of US$ 3,867 million, a 109.3% more than the US$ 1,848 million in 2021.
Argentina increased its daily production of oil in 2022 of 577,000 barrels daily in January to 623,000 daily last November (latest data available), according to Economy & Energy consultant.
This means aincrease of 8%, also limited by the lack of transportation infrastructure. Investments have already been announced US$ 1,080 million for this year to increase the capacity of the main pipeline that connects Vaca Muerta with Buenos Aires.
Of the 623,000 barrels per day produced, 352,800 barrels are used in conventional reservoirs (like the St. George fjord) and 270,300 barrels are found in unconventional reservoirs where Dead cow.
What draws attention, however, is the trend: while conventional production fell again by almost 4% compared to the previous year, unconventional production increased by more than 36%.
This dynamic predicts that in the coming months the supply of Dead cow It will lead the country's total production, allowing not only to correct falls in other wells, but also to continue increasing exports.
The main company producing Petroleum is YPF, which concentrates the 37% of the total offer of the country, however, is the only one that still does not export Petroleum, since all its production is destined to supply the Internal market.
Additionally, we purchase approximately 7% of our capacity processing from other manufacturers. This represents the 55% from the entire market of gasoline and diesel.
In the middle of this year, state-owned companies are struggling to become self-sufficient.
Other important producers are Bread American Energy (16% of total supply) -Burgeroni family company-, View (8%) -company founded by Maicol Galluccio-, Chevron (7%) and Shell (6%).
Over the next two years, Oldelval, the company that operates the gas pipeline Vaca Muerta-Buenos Aires, will increase the transportation capacity from the 226,000 barrels per day current to 540,923 barrels in 2025.
In turn, the Trasandino oil pipeline is expected to (Otasa) to Chile, inactive since 2006, be conditioned at the end of February or beginning of March, and transport initially 38,000 barrels per day (later an expansion to 100,000 barrels is expected) .
The expansion of transportation capacities will allow the country to continue increasing its exports, in a context in which the international price of a barrel of Petroleum remains high, around $85 for Brent.
“Energy sector exports achieved a notable boost in 2022, reaching $8,398 million [including fuels, lubricants and other fuels], up 58.9 % from 2021. This is a record, surpassing the most recent high of 7,847 million dollars in 2008. billion,” said consultant Daniel Montamat.
The former Minister of Vitality also highlighted “the growing volume of Dead cow, which contributed to the export of Medanito type oil, a type that was used for domestic consumption until 2020 and that, especially in 2022, became part of the offer international oil, with international qualification.”
In fact, before the epidemic, Argentina only exported heavy crude oil called Escalante, which is produced in the Gulf of Saint George.
Given the sharp drop in consumption of gasoline and diesel during the severe confinement due to the pandemic, the manufacturer Dead cow started to export diesel, opening a new market to which they later gained loyalty.
gas revenge
Unlike oil, gas imports increased 120.2%, when passing from US$ 5,843 million to US$ 12,868 million.
He explained it with the increase in international prices of liquefied natural gas (LNG) and the increase in consumption of diesel after the resurgence of the economy (especially agricultural activity) post-pandemic.
For this year, not only is a significant drop in the price of gas expected (mainly after the European winter was warmer than expected), but also a drop in the volume of imports, if the Néstor Kirchner gas pipeline is completed for the winter.
The government calculates, therefore, that it will save 2.4 billion dollars in imports this year.
In 2022, the energy trade balance was negative in US$ 5 billion. However, according to their estimates for the sector, a positive result of more than 17 billion dollars by 2030. This represents a jump of US$ 22 billion in seven or eight years.