NEWS

Argentina: Vaca Muerta, business for few, problems for many

Argentina: Vaca Muerta, business for few, problems for many

The president of the Argentine Republic, Mauricio Macri, announced bombastically that, with the development of the Shale de Vaca Muerta formation, Argentina will experience a “positive, energetic revolution” to “supply the world” 1, and his cohort redoubled their propaganda with the aim of distorting reality in the perception of national society, making it believe that the country is on the way to becoming an energy power.

Such deception is one of the many that make up the chain of myths launched, for social consumption, by the Macri administration.

Although Vaca Muerta, a field that covers an area of ​​30 thousand km2 and covers four provinces, will have profitability, it will in no way be the positive and energy revolution for Argentina, because they are the international mega-entrepreneurs, such as the British magnate Joe Lewis, a personal friend of President Macri, and local businessmen, linked, directly or indirectly, to the Global Power of Money, such as the example of Marcelo Mindlin, another presidential friend, who will absorb the highest rates of profit, with Vaca Muerta being a vertical, restricted and with automatic direct transfer of foreign currency abroad.

For those unaware of the matter, Mindlin tops the list of the most successful Argentine businessmen since Mauricio Macri took office in December 2015 and shares business partnerships with Joe Lewis. The president's friends recapitalize themselves, among other maneuvers and activities, with the exorbitant and flagellating prices and tariffs generally suffered by residential, commercial and industrial users of gas and electricity services. In the light of day, there is an organized and efficient extraction of money from the population to accumulate capital in order to redirect part of it to finance Vaca Muerta.

The propaganda in the making raises the expectations of an Argentine energy powerhouse from the hand of Vaca Muerta, under the Macri Administration, but it is very difficult, rather, it is operationally impossible for this to become a reality, since the real and final cost of productivity It will make you lose competitiveness in world markets, even if you get insertion in precise national local markets. In addition, the Trump Project and the geopolitical repositioning of the United States through oil, will not allow it, in case the current occupant of the White House takes hold after 20202 and, even more, when competition for it escalates further. global leadership and regional hegemony between the USA and China.

Similarly, it is necessary to weigh the energy geopolitics of the Russian Federation, which, logically, struggles not to lose its market shares. It is precisely energy resources that today, among other advantages, will compensate Russia for some losses represented by the loss of value that the ruble is having. Still less will they easily resign their stakes in the energy markets Saudi Arabia, Iran and Qatar, just to mention a small handful of already established players.

Above, the acute conflict on an international scale between conventional and green energies will not collaborate in the macrista image of Vaca Muerta as a positive revolution, energy and supplier of the world.

On the other hand, it is convenient to underline that, in the original Macrista ideation, Vaca Muerta would serve as a source of financial resources and as a physical guarantee for the payment of interest on the foreign debt. Furthermore, the energy pole already provides foreign debt collateral to specific international creditors and it is because of this that banks such as JP Morgan stimulate their investment and keep their eyes on the deposit.

In short, Vaca Muerta is just a business in progress for the friends, allies, partners and global promoters of the Macri administration, which does not have a Country Project because it only applies indications from the transnational capitalist factions, establishing conditions, rules and tools to model the country according to the World 2030 approach.

Notes:
1-https: //www.lanacion.com.ar/2166463-macri-vaca-muerta
2-https: //www.geopolitica.ru/es/article/reposicionamiento-estadoamericano-traves-de-su-oleo

AGGREGATE:

Around 65% of Vaca Muerta is directly in private hands, with the majority there being foreign capital. The rest belongs to YPF. But it should be clarified that the composition of YPF's shareholding is divided into 51% belonging to the State and 49% to private capital, with a strong foreign presence, with Banca Lazard, George Soros and BlackRock, among others, appearing as holders of these shares .

BlackRock also owns shares in JP Morgan Bank.

The current president of YPF, Gutierrez, worked at JP Morgan. It is this bank that is the main debt placement agent for the Macri Administration.

Finally, foreign capitalism and companies of national origin but with strong international interference in their actions (Pampa Energia case of British Joe Lewis and Marcelo Mindlin) hardly reinvest in the country the profitability obtained in Vaca Muerta.

Diego Pappalardo
https://www.cenae.org

Video: Prospects for the Oil and Gas Industry on a Downward Spiral. IEEFA Energy Finance 2020 (October 2020).