Revocation Of 'Oil Plus' Could Pose Threat To Burgeoning Shale

BMI View: Argentina's decision to revoke the 'Oil and Refining Plus' programmes is based on the belief that the country's huge shale potential will suffice to lure foreign investment into the sector. However, a more viable solution would have been to introduce an incremental liberalisation of end-user prices that would have improved production margins, curbed demand and decreased fiscal expenditure. The withdrawal of the programme will only damage Argentina's upstream business environment and put the country at risk of a new energy

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