State and the oil ownership in Argentina. Background of the emergence of Yacimientos Petrolíferos Fiscales (1907-1922)

Abstract

The development of Yacimientos Petrolíferos Fiscales was the subject of much controversy. However, few studies have analyzed the specific conditions that gave rise to it. Further research is required into the specific factors determining the early appearance of criticism of the prevailing liberal oil regime during the formative years of Argentina’s oil industry. In this paper, we propose to make a contribution in this regard, analyzing the period from the first direct state intervention in exploration to the emergence of YPF. We seek to identify the characteristics of the existing oil land regime, the relationship between the exploration and drilling sector and the domestic market, and the prospects for foreign private capital which entered the country in those years. Finally, we suggest that, given the particular oil structure in Argentina, the rise of YPF appeared as a necessary response to overcome the obstacles presented by the liberal regime of oil lands to achieve integration between upstream and downstream stages.