ENERGY ADVISOR a WEEKLY PUBLICATION of the DIALOGUE September 11, 2020

LATIN AMERICA ADVISOR ENERGY ADVISOR A WEEKLY PUBLICATION OF THE DIALOGUE www.thedialogue.org September 11, 2020

BOARD OF ADVISORS FEATURED Q&A TOP NEWS Nigel Blackaby Global Head, OIL & GAS International Arbitration Group, Freshfields Bruckhaus Deringer Will a New Secretary Mexico Likely to Mary Rose Brusewitz Cut 2021 Crude Member, Clark Hill Strasburger Change Argentina’s Output Targets: Jeffrey Davidow Lawmaker Senior Counselor, The Cohen Group Energy Direction? Ruling party legislator Erasmo González said Mexico will likely Jonathan C. Hamilton Partner, be forced to cut crude oil produc- White & Case tion targets after missing this Ana Heeren year’s goal. Managing Director, Page 2 FTI Consulting

Raul Herrera RENEWABLES Partner, Corporate & Securities Practice, AES Tiete, Unipar Arnold & Porter James R. Jones Partner on Wind Chairman, Project in Brazil Monarch Global Strategies Brazilian energy firm AES Jorge Kamine Argentina’s new energy secretary, Darío Martínez (L), met with President Alberto Fernández (R) Tiete and Unipar Carbocloro have Partner, in late August to discuss the future of the energy sector. // Photo: Argentine Government. Corporate & Financial Services, formed a joint venture to develop Willkie Farr & Gallagher a 155-megawatt wind project in Craig A. Kelly Sergio Lanziani resigned last month as Argentina’s energy Brazil’s Bahia state. Senior Director, secretary. Darío Martínez, a lawmaker representing Neuquén Page 2 Americas Int’l Gov’t Relations, Exxon Mobil province—where the massive Vaca Muerta shale oil and gas OIL & GAS Jorge León Q formation is located—will replace him. What led to Lanziani’s Energy Economist, departure? Is Martínez the best person to head the energy sector, and Brazil Oil Exports BP how might his priorities as secretary differ from his predecessor’s? What Jeremy Martin Down in August: Vice President, Energy & Sustainability, is the current state of the South American country’s oil and gas sector? Ministry Data Institute of the Americas Brazilian crude exports fell about Mayya Novakovskiy 30 percent in August as compared Manager, Western Hemisphere, Víctor Bronstein, director of the Centro de Estudios de Chevron to a month earlier but were up 15 Energía, Politica y Sociedad (CEEPYS) in Buenos Aires: percent year-on-year, according Larry Pascal Chairman, “Lanziani’s departure was expected several months ago as he to preliminary data from the trade Americas Practice Group, was never really able to settle into his position and advance ministry, which is currently led by Haynes & Boone A Marcos Jorge de Lima. his projects. He did not choose most of his collaborators; rather, they R. Kirk Sherr Page 2 President, were distributed according to the different sectors of the ruling coali- Clearview Strategy Group tion, which attacked the coherence of his team and made management Mark Thurber difficult. In addition, due to his own mistakes, shortly after taking office Partner, Hunton Andrews Kurth he lost the political support that led him to head the energy secretariat. Jose L. Valera The situation made Production Minister Matías Kulfas, on whom Lanziani Partner, Mayer Brown LLP depended, directly assume management of the energy portfolio, leading Lisa Viscidi to the development of the Gas 4 Plan to favor investments in Vaca Muer- Program Director, ta. It is truly difficult to say if Darío Martínez is the best suited to lead Inter-American Dialogue Argentina’s energy secretariat. Unlike Lanziani, he has a more political Vanessa Wottrich Principal Analyst for Latin America, than technical background. Before taking office as secretary, he served Equinor as a national deputy at the head of the Energy and Fuel Commission. Surely, coming from the province of Neuquén—where almost 90 percent of Vaca Muerta is located—the government’s priority will be the develop- de Lima // File Photo: Brazilian Government. Continued on page 3

OIL AND GAS NEWS barrels per day (bpd) for next year is stretched, NEWS BRIEFS adding, however, that state oil company Pemex Brazil Crude Exports is still on track to increase its production from BI Energia in Talks With current levels. In July, the firm saw its lowest Gov’t of Rio Grande do Down in August, in levels of production since October 1979, at 604 million bpd, down 4.2 percent year-over-year, Norte Over Wind Project Part Due to China according to data from the National Hydrocar- Italian-Brazilian energy firm BI Energia is bons Commission. In the first seven months in talks with the government of Brazil’s Rio Brazilian crude exports were down about 30 of the year, crude production levels in Mexico Grande do Norte state to discuss the feasibility percent in August as compared to July, at averaged 1.692 million bpd, below the 1.83 of developing an offshore wind project with a around 1.29 million barrels per day (bpd) of million bpd the Finance Ministry expected. 624 megawatt capacity, Renewables Now re- oil, in part due to congestion at Chinese ports Pemex was among the companies that saw the ported Monday. The proposed wind farm, which following severe floods in the Yangtze basin, sharpest drop in output in July, Publimetro re- would have 52 wind turbines of 12 megawatts Argus Media reported Monday. However, as ported. Combined with lower selling prices, the each, would be able to generate around 3.15 compared to the same month a year ago, below-target production levels have slashed million megawatt-hours per year. It would cover the government’s oil revenue to just 56 percent an area of 300 square kilometers, including one of its target. González told Bloomberg News offshore and one onshore substation, accord- that the budget proposal, which the governing to the report. Around 88 percent of all ment presented to Congress on Tuesday, is “the Brazilian crude exports in most complex of the last nearly 100 years in August were to China. the modern history of our country” due to the pandemic. González also said the importance AES Tiete, Unipar Form of public health has made it very difficult to de- Joint Venture to Develop sign the plan, which stipulates higher spending Wind Farm in Brazil Brazilian crude exports rose almost 15 percent, on public health. Brazilian energy firm AES Tiete announced last according to preliminary data from the trade week that it has officially formed a joint venture ministry, known as MDIC. Around 88 percent with Unipar Carbocloro to develop a 155-mega- of all crude exports in August were to China, Argentina Uncovers watt wind project that is part of AES Tiete’s 73 percent higher than the approximately 1.94 Scheme to Steal Oil Tucano wind complex in Brazil’s Bahia state, million bpd Brazil sold to the Asian giant in Renewables Now reported Sept. 4. The compa- July, according to MDIC data. As compared to From Key Pipeline nies expect the wind farm to begin generation August 2019, the Netherlands, France and Por- in the second half of 2022. AES Tiete had tugal increased their share of Brazilian crude, Argentina has uncovered a large-scale previously said the project would require an while the United States reduced its share in the scheme to steal crude from a key pipeline investment of about 4 million reais ($756,000) same period, Argus Media reported. [Editor’s that transports crude to the country’s three per megawatt for the plant to be built. note: See related Q&A in the July 31 issue of largest refineries, Argus Media reported Sept. the Energy Advisor.] 3. Authorities in the provinces of Buenos Aires, Santa Fe, Neuquén and Río Negro last week Mexico Likely to Cut arrested 23 people and conducted 39 raids in Cuba Expands Solar PV connection with the case. The theft occurred Plant With ADFD Funding at the YPF-operated Rosales-La Plata pipeline, 2021 Oil Production Cuba has recently expanded a 10-megawatt which is approximately 548 kilometers long solar photovoltaic plant to 15 megawatts of Target: Lawmaker and has the capacity to hold some 325,000 bar- total capacity, financed by the Abu Dhabi Fund rels of crude per day. It supplies the La Plata for Development, or ADFD, Renewables Now Mexico will likely be forced to cut its targets refinery as well as Raizen’s Dock Sud and Ax- reported Tuesday. The project was upgraded for crude oil production next year after missing ion’s Campana refining facilities. Federal police with the savings from a concessionary loan of this year’s goal, ruling party legislator Erasmo chief Eduardo Villalba said authorities are now $15 million, said ADFD, adding that benefits González told Bloomberg News in an interview in the second part of the investigation, which from this project prompted it to support a published Sept. 3. González, who heads the includes finding the channels through which second solar scheme of 14.3 megawatts that lower house’s Budget Committee, said the gov- the theft ring brought the stolen oil to market, will include 4 megawatts of battery storage ernment’s initial output target of 2.027 million Diario Río Negro reported. Argentine state oil capacity.

company YPF said it was still evaluating the FEATURED Q&A / Continued from page 1 impact of the oil theft, which is common in other Latin American countries but had not ment of this formation of unconventional bpd. Gas production decreased approximate- been uncovered in Argentina until now, Argus resources. This clearly differentiates him ly 12 percent in July year-on-year (averaging Media reported. “In terms of quantity, we have from his predecessor, who was a nuclear 126.8 million cubic meters per day at actual not determined that yet because the pipeline engineer and emphasized the development heat value). There is a large inventory of is the main location, but we believe this is not of the nuclear sector in our country. This shale wells drilled but uncompleted and/or the only case in which there was illicit activity, strategy, which was much discussed, was without connection, waiting for an increase and YPF was not the only injured party,” said also one of the reasons for his resignation. of demand from refineries (still affected Gustavo Chaab, YPF’s vice president for the The Covid-19 pandemic has hit the oil and environment, security and safety. Argentine Se- gas sector hard. The destruction of demand curity Minister Sabina Frederic said uncovering and the fall in oil prices caused drilling in There is a large invento- the scheme allowed the country to “avoid the Vaca Muerta to be reduced to the minimum, ry of shale wells drilled damage and catastrophes that we have seen as occurred in Permian and other uncon- but uncopmleted and/or happen in other countries.” ventional formations in the United States. In without connection...” turn, YPF is in a weak situation and is heavily — Tomás Lanardonne in debt following the Macri administration, RENEWABLES NEWS which undermined the investment needs to develop Vaca Muerta. To alleviate this, the by the harsh lockdown in Buenos Aires). In government in June established a support parallel, operators are conducting negotia- Enel X, AMP Capital price of $45 per barrel of oil, known as the tions to lower service costs (in particular, Partner on Electric ‘Creole barrel.’ The government is also about those of drilling rigs) as well as labor costs to implement, in agreement with production (a side-letter new collective bargaining Transportation companies, a plan to favor investments agreement was inked on Aug. 29 with the oil and increased gas production. The plan is union of Neuquén). From an energy policy Enel X, Italian renewable energy firm Enel’s essential to prevent Argentina from having perspective, the government is designing advanced energy services business line, has to re-import LNG in the winter of 2021.” in the short term a new scheme to promote reached an agreement with global investment new gas wells with the aim of increasing manager AMP Capital to develop infrastructure Tomás Lanardonne, partner and local gas production before the 2021 winter, for the deployment of electric public transpor- manager of the Neuquén office and in the mid-term, a new promotional law tation across the Americas, the companies of Martínez de Hoz & Rueda in to foster large scale shale oil and gas export said in a statement released Sept. 3. Enel X A Argentina: “Lanziani’s depar- projects.” and AMP Capital will partner to invest in the de- ture is a ‘Chronicle of a Death Foretold.’ He velopment and leasing of electric public trans- has been a ghost since day one. He will Gerardo Rabinovich, second portation vehicles and associated infrastruc- probably be the least-remembered energy vice president at Instituto de ture for the vehicles’ storage, charging, repair secretary of the past decades. The fact that la Energía “General Mosconi” and operation in the hemisphere, the statement Martínez was born and raised in Neuquén A in Buenos Aires: “In August, said. “Urbanization is one of the global trends will probably align certain federal energy the current president of the energy and fuel that are changing the energy sector as megac- policies with those required for the devel- commission of the Chamber of Deputies, ities are increasingly requiring solutions for a opment of Neuquénʼs unconventional oil Darío Martínez, replaced Sergio Lanziani, clean, sustainable future, with electric mobility, and gas resources (including the new Plan who was appointed secretary of energy both public and private, playing an essential Gas, the new gas trunk pipeline). During his only six months ago. The change is not role in this scenario,” Francesco Venturini, chief tenure in the Chamber of Deputies, Martínez only one of civil servants, but also of the executive of Enel X, said in the statement. “The has been in charge of legislation that will government’s structures, transferring the partnership with AMP Capital reinforces our promote new investments in the oil and gas Secretariat of Energy from the Ministry of commitment to develop a sustainable, public sector (which is yet to be submitted to the Productive Development to the Ministry of mass transportation system, levering on our Congress), so he probably understands the Economy. This demonstrates the govern- expertise in e-mobility and our strong presence needs of the sector. Production of crude oil ment’s concern to control the amounts of in most of the megacities in the Americas,” decreased approximately 50,000 bpd due subsidies offered in the energy sector as a he added. AMP Capital holds an 80 percent to the pandemic, to approximately 490,000 result of the rate freeze and the announce- controlling interest, and Enel X holds a 20 per- Continued on page 6

COPYRIGHT © 2020, INTER-AMERICAN DIALOGUE PAGE 3 LATIN AMERICA ENERGY ADVISOR September 11, 2020 cent interest in the joint venture, according to the statement. The agreement’s value was not revealed, Reuters reported. Enel X currently has SUBSCRIBER NOTICE seven regional electric transportation projects, with bus fleets in Santiago, Bogotá and Monte- Vanessa Wottrich Joins the Energy video, the wire service reported. Advisor’s Board of Advisors

We are pleased to announce that Vanessa Wottrich has POLITICAL NEWS joined the Energy Advisor’s Board of Advisors.

Venezuela’s Guaidó Wottrich is a principal analyst in Norwegian energy firm Equinor’s global strategy and business development unit Reiterates Call for with a focus on Latin America. Originally from Brazil but now based in Oslo, she advises Equinor on geopolitical develop- Boycott of Election ments and trends that have an impact on Latin America’s energy sector. Venezuelan opposition leader Juan Guaidó, whom dozens of countries recognize as the Wottrich joined Equinor in 2009 and has worked on energy country’s legitimate interim president, on market analysis, project advisory and strategy roles covering Monday announced a “unity pact” with 37 the company’s international portfolio. political organizations calling for a boycott of the legislative election planned for December. Previously, Wottrich worked in strategy and management consulting roles in Brazil and China. Juan Pablo Guanipa, the first vice president of She has a master’s degree in strategic project management from Heriot-Watt University in the opposition-controlled National Assembly Scotland, Politecnico di Milano in Italy and Umea University in Sweden, as well as a master’s and leader of the First Justice party, shared degree in strategy from Universidade Federal de Santa Maria in Brazil. the pact on social media, outlining among its objectives “fighting for liberty, democracy and against Maduro and lost, called on Venezue- that the country’s electoral tribunal made in lans to participate in the vote and opened talks February, Reuters reported. Morales, who was with the government to work toward ensuring a Bolivia’s president for 14 years, stepped down Engaging in fraud and fair election, Reuters reported. In related news, last November amid widespread protests over fostering disunity only Venezuela’s National Constituent Assem- the country’s disputed election. He now lives collaborates with the bly, which is stacked with Maduro loyalists, in exile in Argentina. In ruling against Morales’ dictatorship.” will not draft a new constitution, the body’s attempt to run for Senate in this October’s elec- — Juan Guaidó leader, Diosdado Cabello, said Sunday, Reuters tion, Judge Alfredo Jaimes told local media reported. Several legislators had said the pow- that Morales does not meet the residency re- erful Constituent Assembly was preparing to quirements. The decision cannot be appealed, progress,” prioritizing the humanitarian crisis update the 1999 constitution. The Constituent Reuters reported. “They denied protection to and conducting free and fair presidential and Assembly has functioned as a body parallel to Evo Morales; democracy won,” said attorney parliamentary elections. It also calls for “deep- the National Assembly since its creation in a Williams Barscope, a member of the judicial ening and escalating international pressure” 2017 special election that led to international team who examined the constitutional protec- on President Nicolás Maduro, though it did sanctions against the Maduro government. tions that Morales’ lawyers presented, Agence not provide further detail. Guaidó is urging France-Presse reported. “Evo Morales cannot citizens to boycott the December election amid be a candidate for senator because he lives in concerns that Maduro’s government will rig Bolivian Court Rules Argentina.” On Monday night, Morales called the vote in its favor. “Engaging in fraud and Morales Cannot Run the ruling an “illegal and unconstitutional po- fostering disunity only collaborates with the litical decision” that was made under “threats dictatorship,” Guaidó said in comments broad- for Senate Seat and pressure.” He added, “History shows that cast on social media. The four main opposition they will be able to disable Evo, but they will parties as well as 33 other parties and political A Bolivian court ruled on Monday that former not be able to outlaw the people.” However, organizations expressed support for the pact. President Evo Morales cannot run for a seat Morales also tweeted, “We will abide by that The announcement came days after Henrique in the country’s Senate, upholding a decision decision because our commitment and priority Capriles, an opposition leader who twice ran

NEWS BRIEFS is for the people to come out of the crisis. We position last April, accusing the president of will not fall into any provocation, the people interfering in police investigations involving Researchers Investigating will once again govern themselves, peacefully Bolsonaro’s inner circle. [Editor’s note: See and democratically.” [Editor’s note: See related related Q&A in the Sept. 3 issue of the daily Uncounted Deaths Q&A in the Aug. 31 issue of the Latin America Latin America Advisor.] From Hurricane Maria Advisor.] The death toll in Puerto Rico from the after- math of Hurricane Maria in 2017 may be higher Brazil Extends ECONOMIC NEWS than the 3,000 deaths that were previously esti- mated, according to researchers at the George Car Wash Task Force Mexico’s Finance Washington University’s Milken Institute of Public Health, the Associated Press reported Until End of January Minister Defends Wednesday. University officials said they are working on a project that seeks to identify all Brazil’s chief prosecutor on Wednesday extend- New Budget Proposal direct and indirect deaths linked to building ed the mandate of the country’s “Car Wash” an- and infrastructure failures in the two weeks ti-corruption task force until Jan. 31, Folha de Mexican Finance Minister Arturo Herrera on after Maria hit the island. S.Paulo reported. The work of the task force, Wednesday defended his recently proposed which is headquartered in the city of Curitiba 2021 budget after ratings agency Moody’s and started work in 2014, has led to the convic- cautioned that the austerity measures included tions of hundreds of politicians and business in the plan were “not sustainable,” Reuters Uruguay Committed to people in the South American country. Among reported. The finance ministry on Tuesday Partnerships for them was former President Luiz Inácio Lula da presented its budget proposal for next year, Recovery: Lacalle Pou Silva. In a statement Wednesday, Brazil’s pros- with an eye toward cutting expenditures while ecutor general’s office said it was important to increasing support for hospitals, pensioners Uruguay is committed to its partnerships with institutionalize anti-corruption investigations in and infrastructure. The plan estimates an 8 other countries as it looks toward economic Brazil, but it did not say whether the Car Wash percent contraction this year, higher than the recovery from the Covid-19 pandemic, Presi- task force’s mandate would extend past Janu- central bank’s worst-case scenario forecast dent Luis Alberto Lacalle Pou said Wednesday. ary, Reuters reported. Carlos Fernando Lima, a of a 13 percent decline, as well as 4.6 percent Speaking at the annual CAF Conference, former member of the task force, said the chief growth next year, significantly better than the co-sponsored by the CAF-Development Bank of prosecutor, Augusto Aras, should allow the bank’s worst prediction, the wire service re- Latin America, the Inter-American Dialogue and group to continue working. “If [Aras] decides to ported. During President Andrés Manuel López the Organization of American States, Lacalle effectively end the task force in January, we’re Obrador’s daily morning conference, Herrera Pou said international partnerships are “in our going to have serious problems with a bottle- defended his proposal, saying “it’s a responsi- essence as a nation” and that he has spoken neck of work,” Lima told Reuters. The group’s ble estimate.” His remarks came after ratings during the pandemic to Chinese President Xi mandate had been scheduled to end on Thurs- agency Moody’s criticized the plan. “It is not Jinping, as well as U.S. officials. day. Prosecutors had requested that the task sustainable,” said Ariane Ortiz-Bollin, sovereign force’s mandate be extended for a year, but the analyst for Mexico at Moody’s, adding that the country’s vice prosecutor general, Humberto tight budget meant the ratings agency was Argentina May Open Jacques de Medeiros, rejected the request, now more concerned about Mexico’s economic Borders to International citing budget shortfalls, Agence France-Presse growth than its debt. In a report published in reported. The task force has been celebrated August, Moody’s lowered its outlook for Mexi- Flights in October: Report for clamping down on corruption in Brazil, but co’s economic growth this year, saying it could Argentina could reopen its borders to interna- critics have accused it of being overzealous, shrink as much as 10 percent, worse than the 7 tional commercial flights in October, Reuters saying it helped to spark political and eco- percent decline it previously predicted. Follow- reported Friday, citing a transportation ministry nomic crises. The Car Wash investigation will ing the presentation of the 2021 budget, Dep- source. “The president has the final decision,” continue without two of its most prominent uty Finance Minister Gabriel Yorio told Reuters the person said. The Health Ministry approved figures. Lead prosecutor Deltan Dallagnol an- in an interview that state oil company Pemex, new airport protocols for international travel, a nounced his resignation last week, citing family one of the world’s most indebted energy firms, requirement before the lifting of a strict travel reasons, AFP reported. Also, former Judge should consider borrowing on the local market ban that was due to expire on Sept. 1. Argenti- Sérgio Moro became Brazil’s justice minister in to meet its financing requirements. [Editor’s na had prohibited all commercial airline flights January 2019, serving under current President note: See related Q&A in the May 4 issue of the into the country since April. Jair Bolsonaro. However, Moro resigned that daily Latin America Advisor.]

FEATURED Q&A / Continued from page 3 LATIN AMERICA ENERGY ADVISOR is published weekly by the Inter-American Dialogue Copyright © 2020 ment of promotion programs for oil and Juan Cruz Díaz, managing gas production that will require resources director at Cefeidas Group in Erik Brand from the Treasury. The amount of subsi- Buenos Aires: “Rumors had Publisher [email protected] dies as of July reached $2.5 billion, with been circulating since early A Gene Kuleta forecasts of it exceeding $4 billion by the this year that then-Energy Secretary Sergio Editor end of the year, and with a growing trend in Lanziani would be replaced. The change [email protected] the coming years. This occurs at a deli- seeks to reinvigorate priorities rather than Anastasia Chacón González cate moment for the government, during change them per se. Lanziani was named Reporter & Associate Editor which, after successfully restructuring its as part of a political agreement with a small [email protected] debt with external creditors, it has to begin party in the governing coalition and had a negotiations with the IMF to restructure the technical background in nuclear energy. He

payment of loans, which will surely require was never seen as a key decision maker on Michael Shifter, President a reduction of the public deficit. The new oil and gas matters. Darío Martínez was also Rebecca Bill Chavez, Nonresident Senior Fellow secretary of energy is from the province of named based on political considerations Sergio Bitar, Nonresident Senior Fellow Neuquén, one of the main producers of gas (having links to both the president and vice Joan Caivano, Senior Advisor president), but has a background in politics Michael Camilleri, Director, Rule of Law Program in Neuquén province, one of Argentina’s Kevin Casas-Zamora, Nonresident Senior Fellow The challenges are main oil and gas provinces and home to Héctor Castro Vizcarra, Nonresident Senior Fellow enormous, the polit- Vaca Muerta. He also has gubernatorial Julia Dias Leite, Nonresident Senior Fellow ical restrictions are aspirations, making this position an import- Ariel Fiszbein, Director, Education Program very important, and ant platform. With the appointment came Peter Hakim, President Emeritus the absence of a long- the simultaneous movement of the Energy Nora Lustig, Nonresident Senior Fellow term visions gives it Secretariat from within the Productive De- Manuel Orozco, Senior Fellow velopment Ministry to the Economy Ministry Margaret Myers, Director, Asia and great uncertainty.” and the announcement of the establishment Latin America Program — Gerardo Rabinovich of an Energy Secretariat office in Neuquén, Xiaoyu Pu, Nonresident Senior Fellow Jeffrey Puryear, Senior Fellow highlighting the importance of developing Mateo Samper, Nonresident Senior Fellow Vaca Muerta to the government’s eco- Tamar Solnik, Director, Finance & Administration and oil, and his challenge will be to recover nomic plans. In this respect, Martínez has Lisa Viscidi, Director, Energy Program the fall in production as a result of Covid-19 expressed the need to redesign the gas sub- Denisse Yanovich, Director of Development, and reactivate the development of the Vaca sidies plan and reduce reliance on imports, External Relations & Special Projects Muerta field. Renewable energy development increase exports, generate investments and and energy efficiency policies will take a promote the involvement of local companies Latin America Energy Advisor is published weekly, with the exception of some major back seat. The challenges are enormous, in the oil and gas value chain. He is also ex- U.S. holidays, by the Inter-American Dialogue the political restrictions are very important, pected to prioritize a strong role for YPF. In 1155 15th Street NW, Suite 800 Washington, DC 20005 Phone: 202-822-9002 and the absence of a long-term vision gives his short time in office, Martínez has revived www.thedialogue.org it great uncertainty. The outgoing secretary the activity of the Energy Secretariat and has ISSN 2163-7962 had a disappointing performance, with little been publicly meeting with key stakeholders to show, and Argentina wasted at least eight and making reactivation announcements. Subscription Inquiries are welcomed at months in developing a strategy for the Although Vaca Muerta hit production records [email protected] energy sector, which is key to the country’s in 2019, by the end of last year, there were The opinions expressed by the members of the Board of Advisors and by guest commentators do not necessarily recovery in a context in which the Covid-19 concerns about slowing activity and invest- represent those of the publisher. The analysis is the sole pandemic gives us no break. Success will ment, and the Covid-19 crisis has negatively view of each commentator and does not necessarily depend on the control the government can affected the oil and gas sector. Recovery represent the views of their respective employers or firms. The information in this report has been obtained exercise over subsidies and on the recovery will come but will be a gradual process that from reliable sources, but neither its accuracy and of oil and gas production, while guaranteeing depends on both the policies implemented completeness, nor the opinions based thereon, are guaranteed. If you have any questions relating to the the continuity of electricity services and the by the government as well as the internation- contents of this publication, contact the editorial offices provision of natural gas to consumers.” al context.” of the Inter-American Dialogue. Contents of this report may not be reproduced, stored in a retrieval system, or transmitted without prior written permission from the publisher.