The "extraordinary" increase in consumption and the "strong decline in investment in exploration" reduced resource reserves of natural gas, the main component of Argentina's energy matrix, 25 in the first half of the decade of the 90’s, to nine years in 2005. According to an analysis of the General Audit Office (AGN, for its acronym in Spanish), this scenario, which has been repeated in recent years, the national energy system placed in a "very critical" situation, which requires "materialize measures to achieve a rapid and sustained growth of energy."

The natural gas production increased steadily from 1993 to 2001, experienced a leveling off during the crisis of 2002, and then continued to grow until today. Of the total of what is produced, 15 percent is used for export. In 2006, for example, the figure was equivalent to $293.5 million US dollars of revenue for 3067.47 million cubic meters to be sent abroad. The rest is for the domestic market, divided between electricity generating plants, industry, households, and transport, including vehicles using CNG.

Meanwhile, the average annual consumption between 1993 and 2006 increased by 7.5 percent, while stocks went the opposite way: in 2005 they fell by 54.5 percent compared to 2000.

According to the AGN, the "sharp decline" of natural gas reserves is related, on the one hand, with the reduction of investment in exploration. This activity involves greater risk and capital exposure, and holders of stocks tend to prefer the exploitation to recover their investment in the shortest time possible. On the other hand, increased consumption figure, which originates in the relative price difference between the products of the energy matrix (natural gas represents 53 percent), and fixed rates.

To hold reservations, the Watchdog’s report says that the regulatory authority for energy policy "should consider incorporating at least equivalent reserves of consumption", which requires between "5 and 10 years of investment in exploration." If Argentina continued to grow at 7% in its GDP, it would need to invest in energy approximately US $ 4,000 million per year over the next decade. The 2008 budget provides for Energy, Fuels, and Mining Sector a total of $10,952,640,276. With the current price of the dollar ($3.08), the amount in US Dollars is just over $3,556 million.

In the area of hydrocarbons, representing 5 percent of the energy matrix, the AGN believes that "the infrastructure works are necessary and direct investments to the achievement of new deposits to swell the reserves." In that sense, the usufruct of gas from Bolivia would increase with the second phase of construction of the pipeline to northeastern Argentina (GNEA) planned for this year, which will provide 20 million cubic meters of BTU per day to an agreed price of $5 per million BTU. Whereas, to increase the primary energy supply, "significant contributions" of the nuclear generator Atucha II are needed and raising the dam height at Yacyretá is expected. For its part, the increase of wind, solar farm, and energy from biomass (ethanol, biodiesel, and biogas) will be palliative to "alleviate the deficit," says the study, but adds that these sources "are not fully developed."

The relevance of these projects originates in the import of gas from Bolivia, or electric power from Brazil, it is "an expensive alternative," says the AGN, and expands: "Argentina pays for Bolivian gas approximately twice what they pay internally.”

The audit also notes that "the companies responsible for removing fuel reduced their exploration and exploitation after the “pesification” activities and freezing rates," adding that while in the 90s 100 new wells were incorporated per year, in 2003 "only 25 were added.”
 
 
If this scenario persists, the Watchdog concludes that "it is possible to reverse the country’s situation from an energy exporter to an importer of substitute fuels."