Exploration & Production

Argentine austerity threatens production subsidies

Argentine President Mauricio Macri will face pressure to cut generous subsidies to the country’s gas producers, but he should stay the course Argentine President Mauricio Macri will face pressure to cut generous subsidies to the country’s gas producers, but he should stay the course.
By The Wildcat 7 September 2018 0 32468
Argentine President Mauricio Macri. (Argentine President’s Office)

Argentina is on the ropes again, and its energy industry is rolling with the punches. There are plans to eliminate the country’s energy ministry as a standalone entity and delay the resumption of gas exports to Chile as part of a raft of austerity measures to stave off a worsening currency crisis.

There is also more pain in store for inflation-weary Argentines, with a 30% increase to household gas tariffs due to take effect in October. Given this, it is...