Before an auditorium, where they had to add more chairs so that the large number of guests, officials, governors and businessmen could enter, they spoke about the country’s potential in Vaca Muerta, lithium, offshore, green hydrogen and renewable energies.
“The optimism that is breathed among businessmen is not irrational, despite the current context, which is so worrying. It is considered, but the energy operator is long-term, and what is seen is that the resources are there, and that is why the incentives are very great”, assured Ámbito Alejandro Diaz, CEO of Amcham. Although the resources are there, he added: “Argentina has to be a net exporter of energy, but for that it has to do things well in the next 4 years.”
USA looks at Argentina
Dressel, chargé d’affaires of the US embassy, said that the conference was “especially timely” given the international situation. She assured that talking about the energy sector is important in terms of energy transition, but also of national security. “Energy security is national security”assured from the stage, and repeated the phrase twice.
“The Biden government achieved unprecedented measures 6 months after Russia’s brutal invasion of Ukraine,” he described, mentioning the increased US oil production. “We also got our allies to join us in bringing additional barrels to market. We will continue our efforts to accelerate the diversification of energy supplies, away from Russia, to protect the world from the use of oil and gas as weapons by Moscow,” he added.
And that’s when he mentioned the focus on Argentina: “Within this global context, we feel optimistic about the potential that Argentina has to collaborate with the United States to help feed and energize the world”. Dressel mentioned that Argentina helps food and energy security, by having “the second largest unconventional gas reserves in the world and the fourth in oil.”
According to data that Dressel mentioned, the projections of the US Embassy for when Vaca Muerta is developed are: position Argentina among the 20 main oil exporters and achieve gas sovereignty in the next 10 years and reduce imports of natural gas by 60% in 2 years. “The impacts we estimate are: US$4 billion in increase in the balance of payments in two years, US$40 billion in tax collection and savings, and the creation of 280,000 jobs,” he explained.
window of opportunity
In fact, in all the exhibitions there was talk of the “window of opportunity” that Argentina has, for having resources for the energy transition, and also to supply the world in a context of energy crisis due to the invasion of Russia, with energy increasingly plus “scarce and burdensome” as described by Flavia Royón, Secretary of Energy. She was the first speaker in a recorded video that she sent.
However, at another point in the event, Ignacio Costa, vice president of the American company Livent (the first company to exploit lithium in the country) summarized on stage what was being discussed among the businessmen at the time of coffee break: He asked that progress be made in long-term measures because otherwise “The window of opportunity is going to close at some point.”
During the exhibitions, the businessmen called for “political agreements” and measures that provide “predictability”, where the supply of exports and the fulfillment of contracts are ensured. Governors also participated, who brought their claims about having new laws: Gerardo Morales, from Jujuy, asked for the electromobility project, Arabela Carreras, from Río Negro, spoke about the need for one for green hydrogen, and Omar Gutiérrez, from Neuquén, asked to update regulations to develop LNG.
On behalf of the national government was Santiago Yanotti, undersecretary of Electric Power. Before the consultation of Ámbito, confirmed that the Ministry of Economy is working on these new regulatory frameworks.
Source: Ambito
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