Argentina plans to issue a decree setting a higher local oil barrel price to protect the domestic industry from being further decimated by a collapse in global prices and slumping fuel demand due to the coronavirus pandemic, two industry sources told Reuters on Thursday.
FILE PHOTO: Oil rigs are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. Picture taken January 21, 2019. REUTERS/Agustin Marcarian
One of the people, a senior industry official with knowledge of government plans, said an announcement around the “criollo” barrel would likely be released next week, to help “put a floor under the steep fall.” He added the official decree was not yet completed.Argentina is home to the huge Vaca Muerta shale deposit, the size of Belgium. It is though to hold one of the world’s largest reserves of unconventional hydrocarbons.
“A criollo barrel is vital and to maintain the price at the pump. Otherwise buy crude at $20 and sell it at a pump at $50, which is what it is today,” said the second source, an oil industry executive in Argentina.
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