The Operation of Vaca Muerta and the Socioeconomic Impact in Neuquén Province. The Case of Añelo. Effects of the National Hydrocarbon Law reform (2014)

Abstract

The economy of the Province of Neuquén is centered in hydrocarbon operation, that represents around 50% of the GDP and affects public budget through royalties income. The decline of oil and gas extraction, verified in Argentina, has caused serious difficulties to the Neuquino State to fulfill its commitments, making Public Debt an inherent variable. The local leadership expectations to reverse this situation are focused on unconventional resources from Vaca Muerta and Los Molles, in the Neuquina Basin. At the same time, the National Government, through YPF, rely on these geological formations development to overcome external restriction.

The purpose of this paper is to analyze the impact of the increased activity in the oil and gas sector in Neuquen, deepening our research about the town of Añelo, which became the operating companies main settlement. Another aspect to be addressed will be the legal framework reform process carried out during 2014, in order to point out the effects of the new legislation in the territory, considering that it incorporates instruments to increase investments.