Despite the crisis, Argentina is going through the best moment of oil and gas production in the last 20 years

Despite the crisis, Argentina is going through the best moment of oil and gas production in the last 20 years
Despite the crisis, Argentina is going through the best moment of oil and gas production in the last 20 years

Despite the economic crisis that Argentina is going through, the Oil and natural gas production in the country is at its best in the last 20 years.

Oil production reached 690,000 barrels per day in March, of which 52% was extracted from Vaca Muerta. On the gas side, it was 134 million cubic meters per day, with a participation of 46% of shaleaccording to a report by the consulting firm Economía & Energía.

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

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Vaca Muerta has resources equivalent to 6 times the energy consumption of Argentina over the next 20 years, according to oil company estimates. The sector ensures that the country could produce 1 million barrels per day and export USD 22 billion per year. There are even more optimistic projections that raise the export perspective to USD 30,000 million annually.

Vaca Muerta’s unconventional oil resource can be a key contributor to helping the country’s macroeconomic stabilization 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, it has the potential to provide the world with increasing volumes of reliable, affordable, low-carbon energy.

Even the productivity of an average well is above those of US shaleand 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, it requires policies that promote advantages for tax-free imports, customs benefits and access to freely available dollars, which would lower the capital cost of the project.

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 cost overruns on hydrocarbon production.

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

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

Neuquen -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.

 
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