{"id":17419,"date":"2016-02-05T12:14:34","date_gmt":"2016-02-05T17:14:34","guid":{"rendered":"http:\/\/olduvai.ca\/?p=17419"},"modified":"2016-02-05T12:14:34","modified_gmt":"2016-02-05T17:14:34","slug":"oil-vs-electricity-argentinas-impossible-emergency","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=17419","title":{"rendered":"Oil vs. Electricity: Argentina\u2019s Impossible Emergency"},"content":{"rendered":"<header>\n<div class=\"td-pb-row\">\n<div class=\"td-pb-span12\">\n<div class=\"td-post-header\">\n<header class=\"td-post-title\">\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.bubblear.com\/argentinas-impossible-energy-conundrum\/\" target=\"_blank\">Energy vs. Oil: Argentina\u2019s Impossible Emergency<\/a><\/h3>\n<p class=\"td-post-sub-title\">Argentina faces twin energy crises. The government ended electricity subsidies, resulting in 500 percent price increases. At the same time, the government is subsidizing exported crude oil to stop protests.<\/p>\n<\/header>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"td-pb-row\">\n<div class=\"td-pb-span8 td-main-content\">\n<div class=\"td-ss-main-content\">\n<div class=\"td-post-content\">\n<div class=\"td-post-featured-image\">\n<figure><a class=\"td-modal-image\" href=\"http:\/\/www.bubblear.com\/wp-content\/uploads\/2016\/02\/oil.jpg\" data-caption=\"Photo via marketonemediagroup.com\"><img loading=\"lazy\" decoding=\"async\" class=\"entry-thumb td-animation-stack-type0-2\" title=\"oil\" src=\"http:\/\/www.bubblear.com\/wp-content\/uploads\/2016\/02\/oil-696x437.jpg\" alt=\"\" width=\"696\" height=\"437\" \/><\/a><figcaption class=\"wp-caption-text\">Photo via marketonemediagroup.com<\/figcaption><\/figure>\n<\/div>\n<div class=\"apss-social-share apss-theme-3 clearfix\"><\/div>\n<p>Argentina\u00a0faces\u00a0twin energy crises that literally and figuratively are screaming from the front of every newspaper in the country. The new government is ending electricity subsidies to consumers, which is resulting in 500 percent increases for families and consumers that meet fairly basic criteria. At the same time, world oil prices have dropped catastrophically over the past 18 months\u00a0from close to US$100 per barrel all the way down to US$30. Yikes.<\/p>\n<figure id=\"attachment_35308\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-35308 td-animation-stack-type0-2\" src=\"http:\/\/www.bubblear.com\/wp-content\/uploads\/2016\/02\/3aceedd0953fd9e214243b7ea0bc302f.png\" alt=\"Requisite &quot;plunging price&quot; chart, courtesy of Nasdaq\" width=\"450\" height=\"317\" \/><figcaption class=\"wp-caption-text\">Requisite \u201cplunging price\u201d chart, courtesy of Nasdaq<\/figcaption><\/figure>\n<p>This leaves President Mauricio Macri\u2019s government in an almost laughable conundrum. While he is bearing the political brunt for the removal of consumer energy subsidies, he is simultaneously under fire from oil and gas companies demanding \u2014\u00a0that\u2019s right \u2014\u00a0energy subsidies for exported oil. In short, these energy companies wanted\u00a0the Argentine government to pay them an extra US$23 per barrel exported to make up the difference between the world price and the fixed price of US$55 they used to receive within Argentina.<\/p>\n<p>More simply, the oil and gas sector of Chubut Province wanted\u00a0Macri\u2019s government to fork over US$500 million to save 5,000 jobs in jeopardy due to low oil prices. That would have been US$100,000 per job saved, and completely\u00a0ridiculous. Today the government agreed to pay a subsidy of US$10 per barrel exported, amounting to a total of US$125 million, or US$25,000 per job saved, to save 5,000 jobs for a period of only six months.\u00a0If oil prices haven\u2019t recovered in six months, we\u2019ll be in the same situation except US$125 million poorer.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/header>\n","protected":false},"excerpt":{"rendered":"<p>Energy vs. Oil: Argentina\u2019s Impossible Emergency Argentina faces twin energy crises. The government ended electricity subsidies, resulting in 500 percent price increases. At the same time, the government is subsidizing exported crude oil to stop protests. Photo via marketonemediagroup.com Argentina\u00a0faces\u00a0twin energy crises that literally and figuratively are screaming from the front of every newspaper in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[2251,12232,184,11316,1103,12233,588,12231],"class_list":["post-17419","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-argentina","tag-bianca-fernet","tag-crude-oil","tag-crude-oil-exports","tag-electricity","tag-electricity-subsidies","tag-oil","tag-the-bubble"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17419","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17419"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17419\/revisions"}],"predecessor-version":[{"id":17420,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/17419\/revisions\/17420"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17419"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17419"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17419"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}