The oil and gas industry is one of the principal sources of revenue for several Provinces in Patagonia. There are well-developed fields in sedimentary basins in the North of Tierra del Fuego, in the North of Santa Cruz and South of Chubut, North of Río Negro and Southwest of La Pampa, and West of Neuquén. Neuquén is the principal producer of natural gas among Argentina’s Provinces. There is a pipeline transporting natural gas from Tierra del Fuego, Santa Cruz and Chubut, and three pipelines transporting gas from Neuquén to the industrial belt of Buenos Aires and other large cities in the center of Argentina.
Market Overview
The freezing of energy prices by the Government of Argentina (GOA) in 2002 led to a significant reduction in new investment in exploration for oil and gas. Argentina’s economy has concurrently shown rates of growth of 8-9 percent over the last five years. These two factors have resulted in occasional shortages in the supply of natural gas to industrial users and thermal electric power plants. Energy sector executive believe that there might be a gradual relaxation of the price controls, and that this, in turn, will lead to more exploratory drilling and growth in downstream investment. The types of equipment with the best prospects under those circumstances would be drilling and work-over rigs, refinery equipment, and oil-well instruments.
Market Research
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Contact
Please feel free to contact the U.S. Commercial Specialist in Argentina, for more information.
