Is Argentina About To See An Oil Crash?

22 Nov 2016   Argentina

It’s been a tough week for the U.S. oil and gas industry, with the Department of Interior annulling 25 leases in Colorado’s Mancos shale (for environmental reasons), and then cancelling 15 leases on tribal lands in Montana . Topped off by the release of a new 5-year offshore drilling plan that closes the Atlantic, Pacific and much of the Arctic to exploration. But things were even worse for oil producers in another part of the world. Where the government made a surprise about-face on pricing policies — with major impacts on E&P profits. Argentina. Earlier this year, things had been looking great for Argentinean oil developers. When the government said it would fix domestic crude prices at around $67.50 per barrel — significantly higher than world prices, in a bid to encourage exploration and development across the country. But news late last week suggests those attractive subsidies […]

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