Page 4 - LatAmOil Week 08 2021

LatAmOil COMMENTARY LatAmOil

(Photo: Télam)
Barriers to gas development

in Vaca Muerta shale basin

Three industry experts speak to LatAmOil about Argentina’s prospects for

successfully pushing ahead with work at its vast unconventional gas fields

ARGENTINA is currently a net importer of nat- techniques best suited to the development of
ural gas, despite its own vast reserves. There are unconventional reserves have been widely avail-
WHAT: many reasons for this, and one of them is the fact able in Argentina for less time than they have
The Vaca Muerta shale that the country has yet to realise the potential of been in the United States. As a result, the South
basin has yet to live up to Vaca Muerta, a vast shale basin located mostly in American country is still in the process of work-
its potential. Neuquen Province. ing to ramp up output from its unconventional
Vaca Muerta is one of the largest shale plays fields.
WHY: in the world. According to the US Energy Infor- Moreover, Argentina has – along with the
There are multiple mation Administration (EIA), it holds more rest of the world – just lived through 2020. That
barriers to develop- than 16bn barrels of technically recoverable is, it saw both gas production and gas consump-
ment, including broad shale oil, along with 308 trillion cubic feet (8.722 tion decline significantly in response to the gov-
structural factors such as trillion cubic metres) of technically recoverable ernment’s imposition of public health measures
inadequate infrastructure
and concerns about mac- shale gas. that restricted travel and transport to curb the
roeconomic stability. Even so, it accounted for less than a quarter coronavirus (COVID-19) pandemic.
of Argentina’s gas production in 2020 – around However, there are several other factors that
WHAT NEXT: 1bn cubic feet (28.32mn cubic metres) per day, have slowed the pace of gas development at
Vaca Muerta gas produc- or about 23% of the yearly total of 4.35 bcf (123.2 Vaca Muerta. LatAmOil recently spoke to three
tion may rise slightly in mcm) per day. industry experts to gain insight on the issue. The
2021, but YPF appears to There are multiple reasons for this, and interviewees’ responses have been lightly edited
be more interested in oil. one of them is timing. That is, the extraction for clarity.

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