Executive Summary ......6

SWOT Analysis ...8

Argentina Political SWOT . 8

Argentina Economic SWOT ...... 9

Argentina Business Environment SWOT ... 10

Argentina Energy Market Overview ...... ....11

Global Oil Market Overview ......13

Table: Global Oil Consumption (000b/d) . 14

Table: Global Oil Production (000b/d) ..... 15

Oil Price Outlook ......16

Waiting For A Correction ... 16

Table: Crude Price Assumptions 2007/08 . 17

Revised Forecasts ...... 17

Table: Oil Price Forecasts ...... 18

Regional Energy Market Overview ...... 19

Oil Supply And Demand ...... 19

Table: Latin America Oil Consumption (000b/d) . 20

Table: Latin America Oil Production (000b/d) .. 21

Oil: Downstream 22

Table: Latin America Oil Refining Capacity (000b/d) 22

Gas Supply And Demand .... 23

Table: Latin America Gas Consumption (bcm) .. 23

Table: Latin America Gas Production (bcm) ..... 23

Liquefied Natural Gas 24

Table: Latin America LNG Exports/(Imports) (bcm) .. 24

Business Environment Ranking ..... ..25

Latin America Region 25

Composite Scores .. 25

Regional Upstream Business Environment Rating ...... 26

Regional Downstream Business Environment Rating . 27

Upstream Scores ... 27

Downstream Scores 27

Argentina Upstream Rating – Overview ... 28

Argentina Upstream Rating – Potential Returns 28

Argentina Upstream Rating – Risks to Potential Returns .... 28

Argentina Downstream Rating – Overview . 29

Argentina Downstream Rating – Potential Returns .... 29

Argentina Downstream Rating – Risks to Potential Returns 29

Business Environment ......30

Legal Framework 30

Infrastructure . 32

Labour Force . 32

Foreign Investment Policy ...... 33

Tax Regime 34

Industry Forecast Scenario ...... 35

Oil and Gas Reserves . 35

Oil Supply and Demand ...... 35
Gas Supply and Demand ..... 36
LNG 37
Refining and Oil Products Trade . 38
Revenues/Import Costs . 38
Table: Argentina Oil & Gas – Historic Data & Forecasts .. 39
Other Energy .. 40
Table: Argentina Other Energy – Historic Data & Forecasts ... 41
Key Risks to BMI’s Forecast Scenario .. 41
Long-term Oil & Gas Forecasts .. 41
Macroeconomic Outlook ....42
Table: Argentina – Economic Activity ...... 44
Regional Case Study .45
Gazprom In the Americas ... 45
Competitive Landscape 50
Executive Summary 50
Table: Key Players – Argentine Oil & Gas Sector ..... 51
Overview/State Role ... 51
Table: Key Upstream Players . 53
Table: Key Downstream Players ..... 53
Company Monitor ..54
RepsolYPF .. 54
Petrobras Energía ...... 57
Chevron Argentina ..... 60
Pan American Energy/BP ... 62
Total Austral ... 64
Esso Petrolera Argentina .... 66
Shell Compañia Argentina de Petróleo . 68
BG Group 70
Occidental – Summary ... 72
Apache – Summary . 72
Glossary of Terms ...73
Oil & Gas Ratings: Revised Methodology ... ..74
Introduction 74
Ratings Overview 74
Table: BMI Oil & Gas Business Environment Ratings: Structure 75
Indicators . 76
Table: BMI Oil & Gas Business Environment Upstream Ratings: Methodology 76
Table: BMI Oil & Gas Business Environment Downstream Ratings: Methodology .. 77
Oil & Gas Outlook: Long-term forecasts ......79
Global Oil Demand 79
Global Oil Demand (000b/d) .. 79
Global Oil Production (000b/d) 80
Global Oil Supply ...... 80
Global Gas Demand .. 81
Global Gas Demand (bcm) ..... 81
Global Gas Supply ..... 81
Global Gas Production (bcm) . 82
Regional Oil Demand 83
Latin America Oil Consumption (000b/d) . 83
Regional Oil Supply ... 84 Latin America Oil Production (000b/d) .... 84 Oil: Downstream 85 Latin America Oil Refining Capacity (000b/d) .. 85 Regional Refining Capacity 85 Regional Gas Demand . 86 Gas Supply And Demand .... 86 Latin America Gas Consumption (bcm) .... 86 Regional Gas Supply .. 87 Latin America Gas Production (bcm) 87 Argentina Country Overview 88 Argentina Energy Outlook .. 89 Argentina Oil & Gas – Long-term Forecasts ..... 89 Argentina Other Energy – Long-term Forecasts 90 Methodology & Risks To Forecasts ...... 91 BMI Forecast Modelling 92 How We Generate Our Industry Forecasts .... 92 Energy Industry 92 Cross checks ... 93 Sources .... 93