• 12 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 14 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 16 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 18 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 20 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 21 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 8 days Kurdish Independence Could Spark Civil War
  • 8 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 8 days The Capital Of Coal Is Looking For Other Options

Oil Producers Here Are Now Getting Double The World Price

Oil Producers Here Are Now Getting Double The World Price

Last month I wrote about soaring profits for resource companies working in Argentina. With local costs for such firms plunging following the devaluation of the Argentinean peso.

And this week the government here confirmed this as one of the best crude markets going on the planet.

That’s because of the oil price in the country. Which officials said will be fixed at US$67.50 per barrel for 2016.

Unlike most global oil markets, Argentina currently mandates oil sale prices — to provide profitability for drillers and ensure development of domestic oil fields and security of local supply. Related: 10 Key Energy Trends To Watch For In 2016

And that looks to be a great situation for E&P firms working in the country.

The 2016 price of $67.50 is more than double the $33.26 per barrel that WTI closed at yesterday. With most major crude blends worldwide currently trading near (or below) such levels.

That means Argentina’s oil producers will be seeing some of the highest revenues going anywhere in the world.

The government did say it may adjust the price throughout the coming year — with this week’s announced price being a 10 percent decrease from the $75 per barrel price that prevailed across Argentina in December. Related: Petro Currencies Under Fire As Oil Keeps Sliding

But even a few more cuts of that magnitude would still leave Argentina’s oil market as the best on the planet. By far.

The high oil price is especially good news in the wake of the recent peso devaluation. Which should push down costs for labor and local supplies for E&P firms — further ramping up profits.

Combine that with recent successful work in Argentina’s emerging Vaca Muerta shale oil and gas play, and it looks like this may be the world’s best spot in the petroleum business today. Watch for financial statements from firms producing here to see if profits are super-charging over the coming months.

Here’s to not crying for me

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • doogie on January 08 2016 said:
    Dave,
    You need to learn how to write a complete sentence. Get a copy of Warriner's or Strunk and White and get in some practice. After that work on paragraphs.

    I am sure you have great insights to share here but you need to present them in readable form.
  • Wolfgang on January 09 2016 said:
    why would anyone buy $67 dollar oil?
  • Geoffrey Mbaku on January 10 2016 said:
    Hello Dave Forest,

    Who would actually be buying Argentinean crude oil for $67.50 per barrel when in the world market it is selling for half that amount?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News