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He highlighted his own company’s efforts at using pipelines to move water to its fields for
the Diario Rio Negro energy seminar, saying hydraulic fracturing (fracking) projects and to
that state-run YPF was trying to reduce overall move crude oil away from the fields after pro-
emissions and was also focusing on upstream duction. The company is doing so because pipe-
projects with relatively low emissions. “This is a lines generate lower levels of GHGs than trucks,
driver of our growth plan,” he declared. he explained. These measures will help Vista “do
This plan, Iuliano explained, calls for YPF to things well from the start and always,” he added.
increase oil production at Vaca Muerta fields in Vaca Muerta is one of the world’s largest
the near future and shift its emphasis to gas in shale formations. It contains around 308 tril-
the longer term. “We are going to grow in oil,” he lion cubic feet (8.72 trillion cubic metres) of
said. “We know that gas is the fuel of the energy shale gas and 16bn barrels of unconventional
transition and we know that renewable energies oil and condensate in technically recoverable
are going to continue to increase, but we also reserves, according to the US Energy Informa-
know that it is necessary to produce fossil fuels tion Administration (EIA). ™
because they will be in demand for a long time.
We need to do it responsibly and with environ-
mental sustainability.”
Another speaker was Juan Garoby, COO at
Mexico’s Vista Oil & Gas, the second-largest
Vaca Muerta producer. He noted at the semi-
nar that his company hoped to raise production
levels by 40% year on year in 2021 but was also
working to rein in emissions over the long term.
Vista aims to reduce GHG emissions to “much
less” than current levels by 2050, he said. He
did not reveal the company’s specific goals but
indicated that it had set interim targets for 2025,
2030 and 2050.
In the meantime, he said, Vista is trying to
avoid gas flaring. Additionally, he stated, it is Vaca Muerta is one of the world’s largest shale basins (Photo: YPF)

PERU
Advocate of greater state control over

gas to become Peru’s new president

PERUVIAN election officials have proclaimed consequences for Peru’s natural resource sec-
Pedro Castillo, the candidate of the leftist Peru tor. Investors have expressed concern about the
Libre party, as the winner of the presidential prospect that Castillo’s administration might
run-off election held on June 6. interfere in the economy, particularly with
Castillo had been running against Keiko respect to crude oil, natural gas and copper
Fujimori, the candidate of the conservative resources. Their worries are not baseless, since
Fuerza Popular party and the daughter of for- the Peru Libre party has been calling for nation-
mer President Alberto Fujimori. Initial election alisation of the hydrocarbon and mining sectors
returns seemed to indicate that Castillo had nar- since 2019.
rowly won the vote, but Fujimori contested the Meanwhile, Castillo himself has indicated
results. She claimed that the outcome had been that he also favours returning these sectors of the
distorted by fraud and manipulation and filed a economy to state control. Earlier this year, for
number of lawsuits disputing the ballot-count- example, he argued that the Camisea gas fields
ing process. ought to be handed over to the government. He
In the end, Fujimori’s efforts were unsuccess- said that the fields were a strategic resource that
ful. Peru’s National Office of Electoral Processes should be nationalised so that they could benefit
(ONPE) resolved the last outstanding challenges Peruvians rather than foreign investors.
on July 19 and certified Castillo as the winner The Camisea fields are being developed by a
with 50.126% of the vote later that day. The Peru consortium that includes US-based Hunt Oil,
Libre leader will take office on July 28, replacing which is also the leader of the Peru LNG project.
interim President Francisco Sagasti. They provide feedstock for the Peru LNG plant,
The outcome of the vote is expected to have which is located in Pampa Melchorita. ™

Week 29 22•July•2021 www. NEWSBASE .com P13