Oil and natural gas production is going through a record moment in 20 years

Oil production reached 690,000 barrels per day (bpd) in March and Vaca Muerta represented 52%. On the gas side, it was 134 million cubic meters per day (MMm3/d), with a 46% share of shale.

This way, Oil and natural gas production in Argentina is at its best in the last 20 yearsaccording to a report by the consulting firm Economa & Energa,

In March, 1,000 million barrels of oil equivalent were produced in gas and oil from Vaca Muerta, since Repsol drilled the first shale gas well in 2010.

The surplus in the energy balance during the first quarter reached 1,670 million dollars.

Vaca Muerta has resources equivalent to 6 times the energy consumption of Argentina over the next 20 years, according to oil company estimates.

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The sector estimates that Argentina could produce 1 million barrels per day and export 22 billion dollars per year. More optimistic projections raise the export outlook to US$30 billion annually.

The unconventional oil resource from Vaca Muerta can contribute to the macroeconomic stabilization of the country by being an important generator of foreign currency, through exports.

Thanks to Vaca Muerta, Argentina is already a structural oil exporter and, within the framework of energy evolution, has the potential to provide the world with growing volumes of reliable, affordable, and low-carbon energy.

Even the productivity of an average Vaca Muerta well is above that of shale wells in the United States, and its carbon intensity is in the first quartile globally.

In this scenario, the private sector demands predictability and clear rules, that is, that there are no surprises in tax matters.

In addition, the advantages of tax-free imports, customs benefits and access to freely available dollars would lower the capital cost of the project.

See also: YPF obtained a profit of 657 million dollars in the first quarter

Private consultants maintain that the implementation of an industrial policy is required that favors the development of the local supplier chain and, with it, employment, without implying significant costs for hydrocarbon production.

Since domestic demand for oil is already supplied, each barrel of production added is a new barrel that can be exported, generating dollars.

The key to exploiting the potential of Vaca Muerta is that the investment conditions are competitive against other assets in the world.

Neuquén – a key province for the oil industry – is the only one that obtains its own resources for 80% of its total income and only depends 20% on co-participation. For every public employee there are 2 private employees. 25 new families settle every day and more infrastructure is needed to supply that demand.

 
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