A Tale of the Golden Goose and the Ugly Duckling. Impacts of the Pandemic on the Argentinean Energy Sector

Argentina is among the countries hardest hit by the social and economic consequences of the current pandemic. The Economic Commission for Latin America and the Caribbean (ECLAC) is predicting the worst economic crisis in the history of Latin America, with a fall in GDP of over 5% and millions more people pushed into poverty. Argentina, which is currently renegotiating its massive external debt, could suffer a drop in GDP of 6.5% or more. In order to mitigate the impacts of the crisis, the government is responding with some immediate relief measures – tax deferrals, subsidies for low-income families, and special financial measures for different sectors including energy – as well as planning a quite ambitious recovery program. The decisions that are being taken today are likely to have a profound effect on the energy sector for decades to come. These decisions are influenced by visions and narratives associated with different sectors, with oil and gas being the “golden goose” and renewables the “ugly duckling”.