This article announces the recent discovery of an oil reserve in southern Argentina. Pan America Energy, based out of Buenos Aires, is Argentina's 2nd largest oil producer and it found the new reserve in the Patagonian province of Chubut. The reserve is estimated to contain 120 million barrels of oil. This discovery is significant for Latin American in a time where years of low investment and a quick economic growth have resulted in low energy resources. The shortages have even forced the government to restrict energy supplies to industrials users at times.
Aside from the benefits that Argentina will reap from this discovery, much of the oil produced will be exported, resulting in increased supplies in a number of countries. Of course, this can lead to cheaper oil prices. In 2007, Argentina was 13th among the top 15 countries that the United States imports oil from. The new reserve may put them much higher on this list in the future.