The production of Petroleum and gas reached maximums of 20 years and 15 years respectively in the first quarter, and the year is expected to close with new increases. This record results in a decrease in energy imports and an increase in exports.
According to a report from the Rosario Stock Exchange (BCR)in the first 3 months of 2024, oil production increased by 8.2% compared to the same period last year, marking the fourth consecutive year of quarter-to-quarter growth for oil extraction. This is a maximum that has not been recorded since 2004.
On the other hand, gas production increased by 2% in the first quarter of the year, reaching its highest level since 2009 for this period. The sector also marks its fourth consecutive year of sustained growth in production.
The Dead Cow factor
Growth has been driven by the Neuquén basin as a result of greater investments and a high level of activity, especially in the field Dead cow.
“The Neuquén basin went from representing 40% of national oil production in 2013 to 62% in 2023. Furthermore, it represented 66% of production so far in 2024. In the case of gas, the participation it grew from 54% in 2013 to 70% in 2023. Unconventional extraction, which involves hydraulic stimulation or fracking to obtain hydrocarbons, already represents more than three quarters of the production of the Neuquén basin,” said the BCR.
“With these perspectives, 2024 could close with increases of 7% and 5% in oil and gas production. If so, we would be at maximum levels since 2004 and 2008 for these hydrocarbons. Not satisfied with this, in the first quarter of the year more than 52% of the oil extracted was by unconventional methods, a proportion that was 19% 5 years ago and 1% 10 years ago. There is no doubt that the strength of Vaca Muerta and its unconventional extraction hopes to continue supporting national oil and gas production,” the entity stated.
For its part, YPF began the process of selling 55 “conventional” oil and gas exploitation areas with the objective of concentrating the financial and technological resources necessary mainly to intensify the exploration and exploitation of the so-called “unconventional resources” concentrated in Vaca Muerta, which until The moment took place almost exclusively in Neuquén, but also included parts of Mendoza, Río Negro and La Pampa.
In parallel, the ship has already arrived to drill the well Argerich in the search for “another Dead Vaca” around 300 kilometers off the coast of Mar del Plata, in the Northern Argentine Basin.
According to information from YPF, “if successful, the project has the potential to reach a production volume of 200,000 barrels per day with a relatively constant production plateau of between 4 and 6 years.”
Energy exports
Likewise, the oil-petrochemical complex reached its nominal maximum of exports with USD 2.2 billion. In the first quarter there was growth of 13% compared to the same period in 2023. Oil was the main driver of the complex, leading sales abroad.
In summary, imports of hydrocarbons and inputs were significantly reduced due to the productive growth of Argentine Oil & Gas. In this sense, imports of oil, gas, diesel and electrical energy fell by 70% in the first quarter of the year. In this way, they went from USD 1,412 million in the first three months of 2023 USD 425 million this year.
