Argentina had bright hopes that the Vaca Muerta shale field would save its sinking economy, but the main investor, the Anglo-Dutch Shell, has decided to abandon fracking in Argentina and focus on renewable energy instead. The price of oil is so low that the project is not profitable.
Argentina's state oil company YPF must pay Transportadora de Gas del Norte (TGN) US$231mn, plus interest and legal costs, for breach of an export contract. "The company is analyzing the aforementioned first instance resolution and will file all the necessary legal remedies to defend its interests in accordance with the applicable legal procedure," YPF said in a statement. One of YPF's difficulties is that Argentina's reputation is so bad that no American legal firm is willing to represent the company.
I am sad about the decline of Argentina. Nearly a third of the country’s workforce is unemployed or has given up on finding work. According to Forbes, Argentina's poverty rate is hovering near 50% at end-2020. My relatives and friends are struggling. Two of my teenage friends, Tomi and Viky, have died recently.
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