During the second day of the XXIX edition of La Jolla Energy 2020, the head of Integra Capital, José Luis Manzano, analyzed the current outlook of the energy industry in Argentina and highlighted the importance of Vaca Muerta.
The panel " Argentine energy outlook" was held via videoconference due to the pandemic, and also counted with the presence of Saverio Minervini (Fitch Ratings); Thomaz Favaro (Director of Control Risk); and Jorge Milanese (Regional director of Sproule).
During his speech, Manzano assured that the challenge that Argentina is currently facing is to generate energy "in affordable prices for the gas, electricity and oil sectors."
Moreover, he stressed that "Vaca Muerta continues to be an opportunity" and added that "it is essential to adequate the costs so that it can regain its attractiveness for the foreign investors."
Meanwhile, Favaro indicated that the country has been undergoing a deindustrialization process for decades which led its economy to depend on the primary products or commodities, such as food and energy. These sectors are the ones that will play the most important roles to face the current economic crisis, he added.
Minervini focused his participation in the costs and taxes that usually hinder investment policies, and he considered that this point must be "reviewed" in order to enhance the energy sector.
To conclude, the speakers discussed the recent Decree that sets a "Criollo" barrel at 45 dollars.
Milanese said that the measure will help the industry, but it must be taken as an emergency measure to be applied in a short period of time.
Regarding this issue, Manzano assured that the Government cannot fabricate demand by decree.