Argentina's energy opportunity in a fragmented world

Argentina stands to gain considerably from a shifting global energy landscape, driven by increasing worldwide demand for oil and gas and significant geopolitical changes. The country is positioned not only to expand its existing oil and gas projects but also to develop them into long-term industrial ventures.

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All continents demand energy and North America is the only one that accelerated during the last year in terms of demand, mainly due to data centers.

Daniel Dreizzen, director of Aleph Energy, highlighted during an energy summit that global energy demand is rising across all continents, with North America showing accelerated growth due to data centers. While natural gas demand has grown about 6% annually over the past decade, becoming a liquefied natural gas (LNG) commodity, oil remains the primary global energy source, followed by natural gas and coal. Dreizzen emphasized that developing nations have a right to pursue growth, which inherently increases energy consumption.

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The world wants more energy and developing countries have the right to develop and they want to do it.

Despite discussions about an energy transition, fossil fuels still constitute 86% of the global energy mix. Dreizzen noted the difficulty in rapidly changing this system, stating, "We are 'hydrocarbon' men." He also pointed out a direct correlation between per capita energy consumption and economic development, measured by GDP per capita.

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There is much talk about the energy transition, but the numbers still show that it is not so easy to change the system. We are 'hydrocarbon' men.

Furthermore, Dreizzen observed a significant trend of global electrification, with electricity demand growing at double the rate of total energy demand. Data centers and artificial intelligence are major contributors, accounting for 15% of this growth. In the United States, data centers are responsible for about 50% of the increase in electricity demand. This surge, however, raises concerns about potential impacts on electricity tariffs and employment.

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The energy consumption per capita maintains a direct relationship with the level of economic development of the countries, measured through GDP per capita.