November 24, 2014
‘Energy self-sufficiency needs to be a joint effort between national and provincial gov'ts’
Cabinet Chief Jorge Capitanich referred to President Cristina Fernández de Kirchner’s meeting with governors of several petroleum-producing provinces. He said the discussion ended with a draft for a federal agreement regarding a reform to the hydrocarbon law to be analyzed by the provinces and by the Senate.
The Cabinet Chief reiterated the importance of the government’s energy self-sufficiency strategy and said it needs to be “a joint effort between national and provincial governments”.
“Argentina ranks second for his shale gas reserves and fourth for its shale oil,” Capitanich said. “It should have a sustainable legal framework to encourage investment and achieve the goal of strategic self-sufficiency.”
He explained that accomplishing energy self-sufficiency would entail a reduction of federal subsidies –thus, fiscal sustainability- and the elimination of currency restrictions, which would in turn cut the prices of key inputs.
The Kirchnerite official specified the contents of the draft made between the President and the governors at the official government residence in Olivos yesterday. He said the document stresses the need for a homogeneous national hydrocarbons tax programme, the establishment of concession periods, the regulation of royalties distribution and environmental impact assessments, among others.