Functional distribution of income in the Mining, Oil and Gas sector of the province of Neuquén, Argentina (2012-2019)

Abstract

In april 2012, the expropriation and nationalization of the shares of the state-owned hydrocarbon company YPF was announced in Argentina. The project, which was called "Hydrocarbon Sovereignty of the Argentine Republic" had as a priority objective the achievement of hydrocarbon self-sufficiency. Through different programs, such as “Petróleo y Gas Plus”, the State subsidized production, which was growing as well as employment in the sector. But the assumption of a new government of a different political orientation at the end of 2015 marked a break in economic policies in general and towards the energy sector in particular. As of 2016, oil activity has been declining uninterruptedly. Expectations arising from the non-conventional exploitation of the fields in the Vaca Muerta formation took a pessimistic turn, which showed the crisis in the
sector. In this framework, companies interested in fracking pressed for the signing of an agreement with the government and the union that modified various elements of the labor relations of the activity, initiating a clear process of flexibility. The objective of this work is to show how from 2012 to 2015 the participation of labor in the income of the Mining, Oil and Gas sector of the Neuquén province increased, while as of 2016, and especially after the signing of the addendum to the collective bargaining agreement, it decreases abruptly. To do this, a calculation of the functional distribution of income in the selected period is carried out, based on official statistics of the number of workers, average wages, gross geographic product (GGP) of the sector and royalties.