The Governance of Shale Gas in Argentina

Table of Contents
Author(s)
David R. Mares
Nonresident Scholar for Latin American Energy StudiesGovernance of the natural gas sector in Argentina is at an incipient stage. The oil and gas sector developed under a centralized management structure in which a relatively insulated government imposed policy on the sector. That structure is well-developed, even if unstable and characterized by lack of credibility. The traditional unilateral government control of the sector is not appropriate for creating a favorable investment climate for the high-cost, high-risk investments required in shale gas or for managing the protests by civil society actors that have erupted against fracking. But the creation of governance as a replacement for government control is only beginning and faces many obstacles to its full development. The evolution of governance will have a major impact on the development of the country's shale gas resources. Consequently, the full development of Argentina's shale gas potential is problematic.
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