$67 Oil Has All The Majors Converging Here

14 Mar 2016   Argentina

Argentina offers one of the few places on earth where oil companies are not suffering from the full force of the collapse in prices. Argentina regulates oil prices, a policy originally intended to insulate the public from the whims of the market, protecting people from triple-digit crude prices. But with the crash in prices since mid-2014, the effect of the regulation has reversed: motorists are now effectively subsidizing the oil industry. Prices for light oil are set at $67 per barrel and natural gas prices fixed at $7.50 per million Btu (MMBtu). That means consumers are not reaping the benefits of cheap fuel. The higher prices they pay offer a huge lifeline for the oil industry. From the consumer’s standpoint, that may not sound like a great deal. But it may help Argentina’s shale industry keep their momentum going. Argentina holds some of the largest shale potential outside of […]

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