The growth in gas and oil production in Vaca Muerta that has been maintained for a few years is explained by various elements, although there is one that stands out from the rest: the evolution of the productivity curve of shale wells in Neuquén. The industry’s focus on extending the life of each drilling resulted in more barrels and cubic meters. How was the progress in recent years?
Two of the main characteristics of shale wells is their high initial production and its “rapid” decline. As activity in the basin became more widespread, oil companies and service companies focused on nnormalize the peak of extracted volumes and also slow down the decline of yields over time.
Official data show that the industry made progress in both directions, due to greater knowledge of the processes and robust progress in terms of efficiency. In other words, it means that Vaca Muerta’s wells are increasingly more productive which translates, among other factors, into lower costs and more income.
In the case of oil, the year-on-year growth in accumulated extraction per well is more staggered than in that of gas, although growth was evident in both segments.
The data comes from the records of the Ministry of Energy. Also from a compilation made by the specialized consulting firm in the sector, Economy and Energy (E&E), led by Nicolás Arceo.
Vaca Muerta: oil wells produce 27% more than in 2019
The record growth of oil production in Vaca Muerta can be analyzed from various angles and one of them is the accumulated production during the first 12 months of a well’s life.
For reference, in 2019, the accumulated production one year after a shale oil well was connected was 212,000 barrels.
Despite the complex scenario that occurred in 2020, due to the impact of the pandemic, this average rose to 232,000 barrels. In 2021 it increased again and produced an average of 250,000 barrels.
- 269,000
- barrels per day was the accumulated production in the first 12 months of life of a shale oil well, in 2023.
The trend was sustained in 2022 and 2023, although at a slower pace: in the first case, accumulated extractions in the indicated period reached the average of 258,000 barrels. While Last year the accumulated closed with the highest record to date, which was 269,000 barrels.
In short, what the numbers show is that Between 2019 and 2020, accumulated production one year after the start-up of a well grew by almost 9.5% and between 2022 and 2023 by 4.3%.. While between 2019 and 2023 the growth is almost 27%, a clear example of how the sector has evolved in recent years.
Vaca Muerta: strong growth in shale gas wells
In the case of gas, significant growth was also evident in the accumulated production after 12 months of operation of a shale well, although with some particularities specific to the segment.
According to official records in 2019, already 12 months after its launch, uA shale gas well produced about 66 million cubic meters of gas. A year later, the accumulated amount dropped to 63 million cubic meters.
- 56%
- This is what increased the cumulative production of a gas well in its first 12 months in 2023, compared to 2019.
The drop is linked to the impact of the pandemic and the storage and export possibilities available: while the oil was stockpiled in export vessels, the drop in consumption and the lack of infrastructure forced the closure of wells, something that seriously affected the sector.
In 2021, the accumulated production in the mentioned period amounted to 97 million cubic meters, while in 2022 it will reach 102 million cubic meters. During the first quarter of 2023 the average was 103 million cubic meters.
The volumes registered during the first quarter of 2023 compared to 2019 mean an increase of 56%, while in 2022 a jump of just 1%.
