“Oil and gas companies on Jan. 10 verbally pledged to invest at least $5 billion in Argentina this year and to more than double that amount annually in coming years after unions agreed to cut labor costs, President Mauricio Macri announced. Industry executives said the agreement will cut down on drilling costs and will make the country’s oil and gas sector more internationally competitive. Will the move indeed make Argentina a more competitive energy market on a global scale? Will Argentina see a marked increase in drilling as a result of the deal? Has the bargaining power of Argentina’s oil and gas unions diminished, and will their concessions lead to more investments in Argentina’s oil and gas sector in the future, as the government hopes?”
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