Released September 28, 2022 | SUGAR LAND
en
Researched by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Oil production in Argentina hit its highest volumes since 2010, following increased shale-oil output. But an explosion at a major refinery highlighted some of the obstacles Argentina faces in reaching stability.
Last month, Argentina's oil production averaged 590,000 barrels per day (BBL/d), its highest output in the past 12 years. The volumes represented a 14% increase when compared with August of last year.
This follows new records in unconventional oil production, which averaged 250,000 BBL/d in August, a 52% increase year-over-year. The output indicates a booming Vaca Muerta, the world's fourth-largest shale-oil area, which has seen significant investments from foreign companies angling for a foothold in Argentina's energy industry.
Flavia Royon, Argentina's energy secretary, praised the new output levels: "We have an activity in constant growth, which is especially important in a global context, where energy is central."
The secretary's view is backed by developments in Vaca Muerta and provincial plans to expand infrastructure and production in the coming years.
Despite its constant growth in oil and gas production, especially in its shale assets, Argentina remains a politically, economically and socially unstable country. High inflation rates, currency controls, civil unrest and polarized political shifts have dominated the country over the last few years, raising doubts about Argentina's long-term stability.
Another setback is the impact that labor unions, especially in the oil and gas sector, could have on the energy industry. Labor disputes between energy companies in Vaca Muerta and oil workers' unions are common in Argentina, and have led to demonstrations and strikes. Disagreements often emerge over salary and contracts, given the nation's high inflation rate and the reduced purchasing power of Argentine workers.
The latest oil workers' strike took place last week after an explosion at New American Oil's Plaza Huincul Refinery, located in Neuquen Province in Vaca Muerta.
The explosion left three workers dead and angered the union of oil and gas private workers of Rio Negro, Neuquen and La Pampa, which declared an open-ended strike starting September 22.
The union, one of the most important in Argentina, covers the Vaca Muerta shale reservoir. Actions taken by this organization raise the alarms of regional and central governments.
The strike was called off a day after it started on September 23, following an agreement between the workers and energy companies, according to an interview shared on Twitter by TV network Telefe Neuquen. Based on the interview, the oil workers' union sealed a deal to prioritize the security of workers across energy assets.
The union also called on New American Oil to be responsible for the remaining oil workers that were part of its refinery, despite the unit being offline following the fire. The union opened the window to further actions if the remaining workers are not taken care of by the oil company.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Last month, Argentina's oil production averaged 590,000 barrels per day (BBL/d), its highest output in the past 12 years. The volumes represented a 14% increase when compared with August of last year.
This follows new records in unconventional oil production, which averaged 250,000 BBL/d in August, a 52% increase year-over-year. The output indicates a booming Vaca Muerta, the world's fourth-largest shale-oil area, which has seen significant investments from foreign companies angling for a foothold in Argentina's energy industry.
Flavia Royon, Argentina's energy secretary, praised the new output levels: "We have an activity in constant growth, which is especially important in a global context, where energy is central."
The secretary's view is backed by developments in Vaca Muerta and provincial plans to expand infrastructure and production in the coming years.
Despite its constant growth in oil and gas production, especially in its shale assets, Argentina remains a politically, economically and socially unstable country. High inflation rates, currency controls, civil unrest and polarized political shifts have dominated the country over the last few years, raising doubts about Argentina's long-term stability.
Another setback is the impact that labor unions, especially in the oil and gas sector, could have on the energy industry. Labor disputes between energy companies in Vaca Muerta and oil workers' unions are common in Argentina, and have led to demonstrations and strikes. Disagreements often emerge over salary and contracts, given the nation's high inflation rate and the reduced purchasing power of Argentine workers.
The latest oil workers' strike took place last week after an explosion at New American Oil's Plaza Huincul Refinery, located in Neuquen Province in Vaca Muerta.
The explosion left three workers dead and angered the union of oil and gas private workers of Rio Negro, Neuquen and La Pampa, which declared an open-ended strike starting September 22.
The union, one of the most important in Argentina, covers the Vaca Muerta shale reservoir. Actions taken by this organization raise the alarms of regional and central governments.
The strike was called off a day after it started on September 23, following an agreement between the workers and energy companies, according to an interview shared on Twitter by TV network Telefe Neuquen. Based on the interview, the oil workers' union sealed a deal to prioritize the security of workers across energy assets.
The union also called on New American Oil to be responsible for the remaining oil workers that were part of its refinery, despite the unit being offline following the fire. The union opened the window to further actions if the remaining workers are not taken care of by the oil company.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
