Argentina

Index rank 26

Balance Score

ABB

Energy Sustainability Index Rankings and Balance Score

 2011  2012  2013  Trend Score
Energy Performance  10  10  12   
Energy Security  7  11  14  A
Energy Equity  21  23  33  B
Environmental Sustainability  46  38  38  B
         
Contextual Performance  78  78  83   
Political Strength  96  88  80   
Societal Strength  69  67  67   
Economic Strength  72  77  100   
         
Overall Rank  21  19  26  ABB
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 30.6
TPEP / TPEC  (net energy importer) 1.02
Emission intensity (kg CO2 per USD) 0.29
Energy affordability (USD per kWh) 0.02
GDP / capita (PPP, USD); GDP Group 17,660 (II)
Energy intensity (million BTU per USD) 0.13
CO2 emissions (metric tons CO2 per capita) 4.46
Population Access to Electricity (%) 88.2
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Index Commentary

Argentina drops seven places in the Index, due to deteriorating performance on the energy security and energy equity dimensions, with the latter being driven by increasing household expenditures on electricity. Overall the country continues to balance the three dimensions of the energy trilemma well. Although energy security indicators remain relatively stable this year, the declining production of hydrocarbons increases the country’s dependence on fuel imports and will likely cause more dramatic declines in energy security in the near future. Argentina’s impact on the environment remains largely unchanged. Contextually, Argentina continues to struggle across the board with indicators of political, social and economic strength.

Trends and Outlook

Argentina, although positioned relatively high in the Index, still faces major challenges and is expected to further drop in the rankings.

With the current energy policy of low prices for producers and high subsidies to consumers continues, there is little chance to revert the decline production. Oil production declined by 30% since 1998, while natural gas production declined by 8% since 2006. As a consequence, Argentina, previously a net energy exporter in 2006 with a surplus of USD 6 billion, turned to be a net energy importer in 2011 with a deficit of USD3 billion.

The lack of investment in all energy sectors has become a major challenge, further intensified by the nationalization of YPF (expropriation of Repsol shares in Argentina’s biggest oil company), where the new management is struggling to attract new investors which are necessary to exploit the large reserves of unconventional oil and natural gas in Argentina.

Policymakers urgently need to focus on restoring the energy markets and attracting a great deal of investment by implementing clear and stable rules and regulations.