I think this should be obvious to everyone by now, but peak oil is a clear factor in the Argentina/Spain oil crisis. Here's what happened.
Argentina has seen its fuel import surge as they have become a net importer of energy. As with just about every other major producer outside of Saudi Arabia, the oilfields in Argentina are already in decline. So, as oil prices soar, this widening energy shortfall means higher prices for ordinary consumers. Argentina's hydrocarbon output has been in decline for a number of years. According to Andy Lees of AML Macro Limited, crude production was down 5.9% last year while natural gas output was also down 3.4%. Meanwhile, power demand rose 5.1%. Bottom line: YPF’s proven reserves of crude and natural gas, which do not include new shale finds, fell ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.