(Energy Analytics Institute, Aaron Simonsky, 24.Mar.2020) — The effects of social, preventive and compulsory isolation are beginning to be reflected in the drop in energy consumption, announced YPF CEO Daniel González in a video shared with employees of the Argentine oil company, and in which he warned the company’s income would be negatively affected and that “very difficult” times were coming.
“Gas production is starting to drop somewhat with demand, which is already 15% to 20% below what it was in previous days,” reported the daily La Nación, citing González.
The executive has already warned investors the company would reduce its gas production by 8% due to the abundance of supply in the market, which has caused a collapse in commodity prices.
YPF’s crude oil processed at its refineries fell between 30% and 40% to adapt to a lower consumption levels, the executive said.
“The demand for gasoline is 70% below previous days and diesel is closer to 50%, and aviation fuel close to 90%,” the executive said. This will leave us with the need to export oil at low prices, and our income will clearly be negatively affected, he warned.
González also said service stations were all still operational, although the accompanying convenience stores were only open when strictly necessary.
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