YPF 2008 annual report -sent to the US Securities and Exchange Commission (SEC) - recognizes the existence of an energetic crisis, and shows the worrying difference between local and international prices. It also aims to Argentina Kirchenerite administration by saying that the large number of regulatory measures adopted could severely affect both company's results and operations.

The report was presented to the SEC and a second copy was sent to the Buenos Aires Stock Exchange Market and caused surprise among the oil industry. It was more a political strike to the Kirchnerite since and despite the well known crisis that energy industries are going through, no one expected a so clear message to Cristina Fernández de Kirchner administration.

Many of the technical data included in the report were also included in another report that the eight secretaries of Energy intended to present a few weeks ago in front of a forum at the Faculty of Engineering (University of Buenos Aires) but failed to do it after the government forced faculty's dean Carlos Rosito to ban the report release.

The document analyzes the conditions with which the company has to deal during 2008. One of its sections it refers to the gas market: "As a consequence of the Argentina energetic crisis, the government has been establishing resolutions and regulations since 2002 that affected the capacity of local natural gas producers to export as well their performance in the local market."

The report specifically mentions that "Political and regulatory developments in Argentina may affect our domestic operations. The Argentine government exercises significant influence over the economy. In particular, the oil and gas industry is subject to extensive government regulation and control. As a result, our business is to a large extent dependent upon regulatory and political conditions prevailing in Argentina and our results of operations may be materially and adversely affected by regulatory and political changes in Argentina. We currently face risks and challenges relating to government regulation and control of the energy sector, including those set forth below and elsewhere in these risk factors:

• Limitations on our ability to pass increases in international prices of crude oil and other hydrocarbon fuels and exchange rate fluctuations through to domestic prices, or to increase local prices of natural gas (in particular for residential customers), gasoline and diesel;
• Higher taxes on exports of hydrocarbons;
• Restrictions on hydrocarbon export volumes driven mainly by the requirement to satisfy domestic demand;
• In connection with the Argentine government's policy to provide absolute priority to domestic demand, regulatory orders to supply natural gas and other hydrocarbon products to the domestic retail market in excess of previously contracted amounts;
• The import of certain hydrocarbon fuels at international market prices to satisfy domestic demand at significantly lower domestic prices;
• Regulatory developments leading to the imposition of stricter supply requirements, fines or other actions by governmental authorities in response to fuel shortages at service stations;
• The implementation or imposition of stricter quality requirements for petroleum products in Argentina; and higher taxes on domestic fuel sales not compensated by price increases.

"The Argentine government has made certain changes in regulations and policies governing the energy sector to give absolute priority to domestic supply at low, stable prices in order to sustain economic recovery. As a result of the above-mentioned changes, for example, on days during which a gas shortage occurs, exports of natural gas (which are also affected by other government curtailment orders) and the provision of gas supplies to industries, electricity generation plants and service stations selling compressed natural gas are interrupted for priority to be given to residential consumers at lower prices. We cannot assure you that changes in applicable laws and regulations, or adverse judicial or administrative interpretations of such laws and regulations, will not adversely affect our results of operations. Similarly, we cannot assure you that future government policies aimed at sustaining economic recovery or in response to domestic needs will not adversely affect the oil and gas industry."