Brent goes up and Dead Cow suffers

For the country, but especially for the formation of Vaca Muerta, it is a story that deepens the previous discomfort between the companies and the governments of the producing provinces. The domestic price barrier established by the national government by a decree of necessity and urgency prevents the transfer of this price increase to production.

This occurs double: with a barrel cap of $ 59 and a parallel price of the US dollar for the oil industry. For the sector, an exchange rate of about 50 pesos per dollar is applied. In fact, thanks to this combination of variables, the value of the barrel quotes about 44 real dollars. That's about $ 22 less than the price that prevailed today for the rest of the world.

The national measure has long been called into question by the producing provinces and the companies, which are thus suffering the consequences of the economic crisis.

The government of Mauricio Macri announced this restriction in a devaluing context in which there was a gunshot of the US currency.

The logic with which he explained his decision was that by limiting the domestic price of oil, he would avoid an increase in fuels, which would then affect the main products of the basic food basket in hypermarket gondolas. Most products are transported to Argentina with heavy vehicles using gasoline and diesel.

In this scenario, the main producers of Vaca Muerta, where they planned to export thousands of barrels of oil shale, are now waiting for clarification: the decree lasts 90 days, there is uncertainty about energy policy. from the direction. Assume the next national government after the October elections.

Today, the international context is widening the gap by about $ 6 at the local price, which will also affect the 12% royalties levied by the producing provinces for each barrel produced.

At the same time, a controlled price creates tensions on the level of investments, while oil companies define their investment plans for 2020.

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