Argentina consolidates surplus in its energy trade balance

Argentina consolidated a surplus in its energy trade balance last November, driven by a significant increase in hydrocarbon exports and a drop in fuel imports, according to official sources.

Data from the Secretariat of Energy shows that Argentina achieved an energy trade surplus of $514 million in the eleventh month of the year.

In November, exports totaled $641 million, of which $285 million came from petroleum oil sales. Meanwhile, imports amounted to $128 million, representing a 67.6% decrease compared to the same month last year.

In the year's first eleven months, Argentina accumulated a positive energy trade balance of $4.806 billion. This marks a shift from the deficits Argentina has experienced since 2011, except for 2020, an anomalous year due to the effects of the pandemic.

Between January and November, fuel and energy exports increased by 19.9%, reaching $8.626 billion. This figure accounted for 6.7% of Argentina’s total exports.

The top destination for Argentina's energy exports this year has been Chile, with shipments worth $2.430 billion, a 64.7% increase compared to the same period last year.

Meanwhile, fuel and lubricant imports decreased by 49.8% year-on-year during this period, totaling $3.820 billion. This includes a 62.5% drop in liquefied natural gas imports and a 52% reduction in diesel imports.

The key to Argentina's shift in its energy trade balance lies in the increasing activity at Vaca Muerta, located in the southwest of the country. The colossal formation, first explored by state-controlled oil company YPF in 2013, has since attracted $50 billion in investments for its development.

A decade after exploitation began at Vaca Muerta, production levels are at record highs, enabling Argentina to significantly reduce its gas import needs during the southern hemisphere winter while also generating growing exportable hydrocarbon surpluses.

Vaca Muerta, where companies like Shell, ExxonMobil, Chevron, Total, Wintershall, Vista, Pan American Energy (PAE), Pluspetrol, and Pampa Energía also operate, now accounts for more than half of Argentina’s gas and oil production.

Recent pipeline and oil pipeline expansion projects have boosted transport and export capacity.