The future of fossil fuels is growing increasingly uncertain. After a steep decline in global demand for oil, the International Monetary Fund (IMF) is considering the discontinuation of its support for the Vaca Muerta oil and gas fields in Argentina. These shale deposits in Patagonia are known to be the second-largest in the world, behind the Permian basin in Texas. The entire Vaca Muerta project has effectively been put on hold by the Argentinian government until the COVID-19 crisis has concluded.
Vaca Muerta is one of the most expensive and controversial fossil fuel projects in the world. Opposed by the Mapuche indigenous community and suffering from weak export infrastructure due to its remote location, the project was already facing difficulties prior to the coronavirus pandemic. Expected to report on the project’s viability as part of Argentina’s upcoming annual review, the IMF will play an unusually crucial role in deciding the project’s fate.
Further indicating the effect of the COVID-19 pandemic on Argentina, the country's National Civil Aviation Administration has banned ticket sales for both domestic and international flights through September 1, 2020. This is the farthest-reaching coronavirus-related travel ban in South America. Additionally, Argentina’s borders have been closed to nonresidents since March 2020.
