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Wood Mac: Expect Argentinean shale boom

Though investments are needed, output from shale basins in Argentina is expected to accelerate, Wood Mackenzie finds. Photo by David Gaylor/Shutterstock HOUSTON, Nov. 20 (UPI) — One of the more lucrative shale basins in the Americas, the Vaca Muerta play in Argentina, could double its output by 2018, analysis finds. Vaca Muerta, located in Neuquen province, is considered one of the best shale basins in Latin America. Analysis emailed from Wood Mackenzie found parts of the basin are producing on average 646 barrels of oil equivalent per day, up 53 percent from last year. Petronas, Mexican oil company Petroleos Mexicanos, known also as Pemex, and Argentine oil company YPF signed a trilateral memorandum of understanding on exploration and production in 2013. Russian energy companies have expressed interest in joining the venture . The study from Wood Mackenzie finds production increases will be slow, but year-on-year expansion expected at around […]

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Oil at $77? It Is in This Country That Plays by Its Own Rules

South America’s second-largest and most enigmatic economy, Argentina is marching to its own beat. (Bloomberg) — Oil at $77? It is in Argentina. Oil has plummeted below $39 a barrel in the U.S. But despite the price bloodbath in global energy markets, it fetches nearly twice that amount in Argentina — home to some of the most expensive crude in the world. Even as prices plunged anew Monday, sending world benchmarks close to the lowest levels they briefly hit in the Great Recession, oil is still flying high in Argentina for the simple reason the government wants it that way. There is some method behind the apparent madness. Argentina is home to the second-largest reserves of shale gas and fourth- largest of shale oil in the world. Faced with a $6-billion energy trade deficit in 2014, the government has been using its made-in-Argentina price to try to turbocharge domestic […]

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Shale does not mean end to Argentina’s natural gas imports: IAPG

Argentina likely will continue to import natural gas supplies to meet peak demand, even as its production from large shale and tight gas resources grows in the next two decades, the Argentine Institute of Oil and Gas (IAPG) said. This is because it would not be economically viable to install production and transport infrastructure to meet peak demand in winter, due to the high cost of maintaining excess capacity simply to have it available for up to 90 days of the year, the industry group said in its gas demand forecast for 2015-2035. "It is cheaper to import LNG, than to build infrastructure and drill wells to meet peak demand," said IAPG president Ernesto Lopez Anadon. IAPG forecast that gas demand would rise to 260 million cubic meters/d in 2035, with peaks of 290 million cu m/d in the May-September cold season. That compares with average gas demand of […]

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