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Subject

The outlook for Vaca Muerta.

Significance

Advisers to President-elect Alberto Fernandez are working on a set of measures whose aim would be to lure up to 28 billion dollars in investment into unconventional oil and gas projects through 2023.

Impacts

The likelihood of further exchange and fuel price controls and political instability will deter hydrocarbons investment.

Distance from export markets and obstacles to necessary infrastructure investments will undermine hopes of a broader economic boost.

Relatively capacious global hydrocarbons supplies may mute investor interest in costly projects facing political and regulatory instability.

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