Enarsa

Enarsa (or all-uppercase ENARSA), in full "Energía Argentina Sociedad Anónima", is a company managed by the national state of Argentina for the integral exploitation of petroleum and natural gas, and the production, industrialization, transport and trade of these and of electricity.

Enarsa was founded in 2004 by an initiative of President Néstor Kirchner with the political goal of gaining a place for the state in an oligopolic market that was completely privatized during the 1990s, mainly with the sale of Yacimientos Petrolíferos Fiscales to the Spanish corporation Repsol, sponsored by the Menem administration.

The creation of Enarsa was a response to the energy crisis endured by Argentina in 2004, caused in part by lack of investment of the private fossil fuel companies in infrastructure needed to meet the demand of natural gas. The price of natural gas, key to energy generation and transportation in Argentina, was frozen since 2002, while gasoline and diesel had increased their price sharply following the devaluation of the peso at the peak of the Argentine economic crisis.

Enarsa's main asset is the ownership of all rights of supervision and concessions of exploitation of offshore energy resources (i. e. all kinds of fossil fuels that are or may be found in the maritime platform). The Argentine national state owns 53% of the company; another 12% is to be shared by the provincial states, and the remaining 35% will be traded in the stock market.

Prospects

The president of the company board, Exequiel Espinoza, announced in April 2005 that Enarsa will participate in joint offshore exploration activities with several other state-owned oil companies in the region, including Venezuelan PDVSA, Uruguayan ANCAP, Paraguayan Petropar and Chilean ENAP, as well as possibly Petroecuador. Espinoza also mentioned contacts with Chinese and Russian companies.

The Argentine Minister of Energy Julio De Vido has stated that the government is working to create a supranational energy company which would include Venezuela, Bolivia and Argentina. PDVSA participates in Enarsa with investment and technical counseling.

According to Jorge Haiek, one of Enarsa's board directors, Argentina should cease to export oil in order to preserve a strategic reserve for the near future, and attempt to substitute natural gas for liquid fuel whenever possible, until alternative sources can be developed. Argentina already has more natural gas vehicles than any other country in the world. Enarsa will most probably find and exploit natural gas in much larger amounts than petroleum, and emphasis on finding gas should also be applied to onshore exploitation, since shortage of gas was the cause of the 2004 energy crisis, and domestic demand has doubled in 12 years.

ources

"In Spanish unless otherwise noted."
* [http://www.pagina12.com.ar/diario/elpais/subnotas/56719-18835-2005-09-19.html El ABC de Enarsa] (Página/12)
* [http://www.pagina12.com.ar/diario/elpais/1-56719-2005-09-19.html Jorge Haiek, director de Enarsa, explica las prioridades de la compañía estatal] (Página/12)
* [http://www.clarin.com/diario/2005/04/26/elpais/p-01601.htm Enarsa buscará crudo en el mar junto a otras petroleras] (Clarín)
* [http://www.elpais.com.uy/Especiales/crisis_energetica/informe4.asp Argentina propone reunión regional para crear "PetroAmérica"] (El País, Uruguay)