Oil investors in the United States They have enthusiasm for Argentina but also uncertainties – 03/12/2019

Argentina was present at the world's largest energy sector meeting, CERAWeek, in Houston, where they met. the leaders of the energy field of the planet, plus oil and industrial contractors. Until Texas, Finance Minister Nicolas Dujovne and Energy Secretary Gustavo Lopetegui had two days of meetings with investors and US officials before leaving for Washington today. # 39; hui. Francisco Monaldi, one of the leading experts in the sector who has participated in several meetings with Argentines, has spoken with Clarin on investment expectations in our country. A member of the Energy Studies Center at the Baker Institute of Rice University and a consultant to several international organizations, Monaldi said that "Great enthusiasm" Due to the potential of Vaca Muerta, the infrastructure to be developed is the main concern. He said that there is "good disposition"To invest, but also "Uncertainty" for possible political changes.

– How do you evaluate the diagnosis of Argentine officials?

– In the world of tankers, the potential of Argentina arouses great enthusiasm, as I have not seen it for a long time. Vaca Muerta was better for them than expected from a geological point of view. Of course, the concern of the tankers is with respect to all issues of regulatory policy, domestic market pricing, union issues, and so on. The questions have always been in this direction. I think Lopetegui and Minister Dujovne did a good job in being very direct. That is, explain the decisions and talk about long-term horizon. They explained that a government is a government but that there are problems related to the long term.

– What are the main concerns raised by investors?

– Vaca Muerta currently has no infrastructure to develop its potential and should begin to grow now. In oil, the problem is solved because it already exists in its market, but gas must have a market in neighboring countries and, although this market is about to develop, it is not enough. You have to do a petrochemical or have a liquefaction to be able to export. If you do not, it will be a limitation for the development of Vaca Muerta. This was one of the big concerns. The other, of course, on the political issue. If there is a change of government, it is always a problem. Another problem was also bottlenecks related to infrastructure. We need to build a new pipeline and another series of things. But what we have seen has been very productive and with very practical meetings to discuss and solve specific problems with a very positive attitude.

– Have you found enthusiasm among entrepreneurs to invest in the necessary infrastructure or are there any doubts?

– I see a good disposition, but there is clearly an uncertainty. The problem is that in Latin America, the vagaries of politics and the political pendulum have been brutal. This case of what is happening in Mexico was a huge opening in the oil industry, a new institutional framework was created, very solid, but now the President (Manuel López Obrador) is trying to change everything. There is an election year and that is the concern, but everyone thinks that, no matter what government exists in Argentina, the potential of Vaca Muerta is enormous. I think the question is how fast will it evolve? If things are well done, it will grow a lot. If things are badly done, it will grow more than anything in oil and a little bit of gas, and nothing else.

– The United States is interested in the subject. Argentine officials met with Secretary of Energy Rick Perry.

– Perry wants all the technological knowledge developed in the United States in shale to be useful to Argentina and the participation of American companies. Apart from Argentina, reproducing, even partially, the success of companies here in Texas does not seem very possible. They see it as a great opportunity for American companies. Some are not American, but they are here.