Argentina’s oil production has decreased by 12% between 2003 to 2010, and everybody’s having fits
- Cristina Fernández blames YPF,
- YPF blames her energy policy,
- Investors are getting whiplashed over stock prices
- and Spain’s Repsol YPF, SA, the oil company’s majority owner, which is based in Spain, even had King Juan Carlos intervene.
Of course, Cristina’s talking of nationalizing YPF, since that worked so well for Aerolíneas Argentinas.
Which is yet another sample of Cristina’s approach to any issue, i.e., bring up nationalism. Oil, the Falklands, inflation, whatever, she has one solution.
Read what’s Behind the Battle for Argentina’s Oil.
I understand that Argentina has undeveloped oil fields.
I understand that under Argentina law, that the property owner does not own the subsurface minerals. The sub surface minerals belong to the state. Thus, a rancher might have oil under his property, but he cannot drill for the oil, and reap the profits. If the state elects to drill on his property, then he just has the disruption to his ranch, with the access roads and pad for the oil drill rig etc.
The law may have been changed, but if not, it certainly would be a factor in bad performance in the oil sector.
I believe you’re correct, Bob, in Argentina the State claims all mineral rights.
In most countries, “The State” owns all subsurface rights.
Argentina has long been a large producer of natural gas but little oil.