Page 13 - LatAmOil Week 48 2022

LatAmOil ARGENTINA LatAmOil

The Vaca Muerta shale formation holds large volumes of unconventional gas (Image: Telam)
Additionally, it has yet to attract the billions of They have also indicated, though, that the
dollars it will need to build liquefaction plants to shift in global energy markets has made LNG
turn its gas into LNG and terminals to load the investments more attractive, meaning that they
LNG on tankers for export. These facilities too might be more willing to invest if Buenos Aires
will take several years to build. offered sufficient tax and exchange breaks.
IOCs and YPF have thus far hesitated to Fernandez said in September during a visit
commit to these time- and capital-intensive to Houston that his government hoped to put
projects, citing concerns about Argentina’s in place a law that offered “certainties to invest-
ongoing financial crisis and the market con- ments destined for energy production and
trols and regulations imposed by the Fernandez fundamentally to the construction of gas lique-
administration. faction plants.” ™

GLOBAL
OPEC output drops in November after

cuts pledged by wider OPEC+ group

OPEC oil output has fallen in November, led by
top exporter Saudi Arabia and other Gulf mem-
bers, after the wider OPEC+ alliance pledged
steep output cuts to support the market amid a
worsening economic outlook, a Reuters survey
found last week.
The group pumped 29.01mn barrels per
day (bpd) this month, the survey found, down
710,000 bpd from October. In September, OPEC
output had been the highest since 2020. due to insufficient investment and, in the case of
OPEC and its oil-producing allies, known as Nigeria, crude theft.
OPEC+, have been boosting output for most of Output from the 10 members fell by 720,000
2022 as demand for oil recovered. For Novem- bpd month-on-month, the survey found, leav-
ber, with oil prices weakening amid concern of ing actual production 800,000 bpd below the
recession, the group made its largest cut since group’s November output target. The shortfall
the early days of the COVID-19 pandemic in in October was 1.36 million bpd.
2020. As a result of production being below target,
Their decision for November called for a 2 OPEC over-delivered on its pledged cuts with a
million bpd cut in the OPEC+ output target, compliance rate of 163% in November, the sur-
of which about 1.27 million bpd was meant to vey found.
come from the 10 participating OPEC countries. OPEC+ meets virtually on Sunday, Decem-
Output has been undershooting targeted ber 4, to review its output policy, and it is not
amounts as many producers - notably Angola expected to make any changes to quotas this
and Nigeria - lack the capacity to pump more time round. ™

Week 48 30•November•2022 www. NEWSBASE .com P13