In the Argentine town of Añelo, a notable transformation has occurred following the advent of fracking activities in the surrounding Vaca Muerta region. Previously a small, isolated rural community characterized by limited infrastructure, Añelo has seen its population increase from around 10,788 in 2010 to 17,893 in 2022, marking a growth of over 60%. Alongside this surge, the town now accommodates approximately 15,000 workers commuting daily, leading to increased traffic, particularly from oil tankers.
Fabio Javier Jiménez, a local mechanic, operates a tyre repair shop that significantly benefited from this influx. The region, situated roughly 1,000 km (600 miles) southwest of Buenos Aires, was identified for its oil and gas resources as early as 1931, but fracking became legal in 2014, enabling commercial access to these deposits. As of February 2023, there were 3,358 active wells in Vaca Muerta, producing over half of Argentina’s oil and gas.
While the fracking industry has provided Argentina with energy self-sufficiency, reducing reliance on costly imports, challenges persist. Economic experts point out that the country’s high inflation and fiscal issues remain unresolved despite the revenue generated from energy exports. Moreover, critics argue that insufficient infrastructure, including pipelines and roadways, hampers full exploitation of Vaca Muerta’s potential.
Additionally, environmental concerns are rising as the political consensus surrounding expanded oil and gas extraction leaves little room for public debate. While some local businesses thrive, like Jiménez’s, skepticism about the broader economic impact of the oil sector remains prevalent, with many questioning whether it can offer lasting solutions to Argentina’s longstanding economic challenges. The recent lifting of some foreign exchange controls may alter the investment landscape, yet the complexities of Argentina’s economic environment still pose significant hurdles.
Source: https://www.bbc.com/news/articles/cewj1e1yk2vo?at_medium=RSS&at_campaign=rss