Nationalization of oil industry in Argentina Essay

Nationalization of oil industry in genus Argentina - Essay ExampleOn the other hand, Argentina believes that they study enough authorities and freedom to formulate policies which are necessary to safeguard the interests of the country. This paper critically analyses the determination to nationalize oil companies in Argentina. Table of circumscribe anoint & Gas Report Argentina.Q1 2013. (2012). Business Monitor International. November 2012. p.1-93. 11 Romero, S. and Minder, R. (2012). Argentina to seize control of Oil Company. The New York Times. April 16, 2012. 11 Sprinkle, T. (2013). For Argentinas Nationalized Oil Industry A Year of Nothing Retrieved from http//finance.yahoo.com/blogs/the-exchange/argentina-nationalized-oil-industry-nothing-232525794.html 11 Introduction Exactly a year ago, Argentina President Cristina Fernandez de Kirchner announced to the world the expropriation of 51% of Argentinian oil company YPF from Spains Repsol (Sprinkle, 2013). The declaration of Pre sident Cristina was totally unexpected and took by surprise by many countries. In fact, Spain was shocked by this announcement because of the problems this decision might cause to Spanish economy. It should be noted that Spanish company Repsol is the 15th largest petroleum refining company in the world according to the novel statistics. Moreover, the growth of Repsol is contributing heavily to Spanish economy. Therefore Cristinas decision has the potential to affect Spanish economic growth in one guidance or another. Spanish ministers have already warned Argentina about the possibility of a diplomatic and industrial war with Argentina. Before the arrival of Argentinas decision, the common belief in Latin America was such that countries in this region can develop properly only with the help of privatization and liberalization bid policies. That is why Cristina decision caused plenty of surprises, not only in Argentina, but also in other countries in Latin America. Cristina is one of the most prevalent administers in Latin America. Moreover, she has taken this decision after a cabinet meeting. In other words, Argentina has taken this decision after a broad debate. They know very much about the benefits and problems this decision might bring to Argentina. In a heavily globalized world, countries are contesting heavily to attract foreign train investment as much as possible because of the awareness that internal resources alone may not help a country to develop properly. evening communist China does not have any problem in welcoming foreign companies. Moreover, majority of Argentinas neighboring countries are act in activities to welcome foreign direct investments. Under these circumstances, Argentinas decision surprised many countries, especially Spain. Nationalization of Oil Industry in Argentina It is necessary to know the size and characteristics of Argentinian oil industry before, discussing the merits and demerits of Cristinas decision. The following table provides a rough idea about Argentinas petroleum data from 2010-2016. (Oil & Gas Report Argentina.Q1 2013, 2012, p.8) From the above table, it is evident that Argentinas proven oil reserves may remain unchanged, at least for another three years. At the same time, the total net petroleum exports started to decline from 2010 onwards.