By : Franyi Sarmiento, Ph.D., Inspenet, July 22, 2022
The discoveries of offshore hydrocarbons in the Argentina Norte (CAN) and Malvinas Oeste (MLO) Basins could have an economic impact of 3.6% of the Gross Domestic Product (GDP) in the years with the highest level of production and export of the resource, with exports for up to USD 447,076 million.
An Ecolatina study analyzed the scope of possible hydrocarbon discoveries in both basins of the Argentine Sea, in scenarios of up to 10 developments with an average useful life of 30 years.
In the case of the North Argentina Basin, it was estimated that GDP growth would range between 0.24% in the event of a discovery and 1.88% in the maximum exercise of 10 discoveries, in the average of total development, while, in the specific year of the highest level of production and sales, the GDP would grow between 0.36% and 3.61% extra thanks to these developments. This performance of the sector would also have a strong impact on the trade balance, in which the report projected a growth of between 3.4% and 26.2%, while employment could see the creation of between 27,000 and 212,000 average jobs maintained between direct, indirect and induced according to the number of discoveries in exploitation.
If each stage of the Type Project is analyzed (Exploration 2 years, Delineation 4 years, Development 8 years, Production 22 years), the effects increase strongly by stage. Thus, for example, an average GDP growth can be projected during the years of each stage for the case of 5 Discoveries: Exploration 0.03%, Delineation 0.04%, Development 0.33% and Production 1.57%.
The offshore hydrocarbon industry requires the development of a wide value chain of suppliers, among which are offshore vessels, aviation, construction and maintenance of platforms, diving, engineering and hotels, among others. In this way, the most benefited sectors would be Maritime/air transport (0.5 %-3,7% ), Electricity, Gas, Water (0.2 %-2% ), Hotels and Restaurants (0.2 %-1,5% ).
Loading...
