Can Vaca Muerta compete with US shale?August 4, 2017
With technically recoverable shale gas reserves of 8.72 tcm (308 tcf) and 16 billion barrels of oil and condensate, Vaca Muerta, located in the Neuquén Basin of Argentina, is one of the largest shale deposits in the world.
Ernesto Díaz, the country manager for Wood Mackenzie in Argentina, talks to TOGY about the opportunities and potential Vaca Muerta holds for investors and the country, and he discusses the main challenges to the development of the unconventional play.
In the video, Díaz explains that although development costs in Argentina are higher than in the USA and will likely remain so, they have been decreasing recently. Combined with a lower price-per-acre than in the USA for comparable shale plays, that makes Vaca Muerta competitive with US shale.
The short-term challenge highlighted by Díaz is to encourage all stakeholders – including unions, services companies, the federal government, provincial governments and operators – to work together to maximise cost reductions, efficiency and productivity. He concludes by suggesting that infrastructure projects begun now will be key to the long-term success of future gas and oil projects in Vaca Meurta.