05/24  Closing Prices / revised 05/24/2024 21:59 GMT 05/23    OPEC Basket  $82.41  -$0.86 cents     | 05/24    Mexico Basket (MME) $73.35  +$0.89 cents   | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 05/24   NYMEX WTI Texas Intermediate June CLM24   $77.72   +$0.85 cents  | 05/24    ICE Brent July  BRNN24     $82.1     +$0.76 cents    | 05/24    NYMEX Gasoline June RBM24     $2.48  +0.6%    |  05/24   NYMEX  Heating Oil June  HOM 24     $2.41   +0.1% | 05/24     Natural Gas June NGM24  $2.52     -5.2%   | 05/24    Active U.S. Rig Count (Oil & Gas)    600  -4  | 05/24   USD/MXN Mexican Peso  16.6948  (data live)  | 05/24   EUR/USD    1.0847 (data live)  | 05/27   US/Bs. (Bolivar)   $36.51290000 ( data BCV)  

Argentina’s Vaca Muerta output to stall amid bottlenecks, analyst warns – Reuters

A drilling rig is seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019.
(Agustin Marcarian/Reuters)

Marianna Parraga, Reuters

HOUSTON
EnergiesNet.com 09 30 2022

Activity levels are at all-time highs in Argentina’s prime region for oil and gas production, but equipment and transport bottlenecks are limiting its growth, energy executives said on Thursday at an energy conference.

The Vaca Muerta shale region in the Neuquen province needs more drilling rigs, hydraulic fracturing fleets, water and natural gas pipelines to continue growing, officials from YPF (YPFD.BA), Tecpetrol and PanAmerican Energy said.

“Frac fleet availability is a massive bottleneck,” said Alexandre Ramos, Rystad Energy’s vice president of shale research. “We are seeing historically high gas production in Neuquen, so upcoming expansions are critical to allow Vaca Muerta to satisfy demand,” he said.

The South American country’s gas production so far this year is running 132 million cubic meters per day (mmcmd), according to state-run oil company YPF, below 2004’s peak 142 mmcmd. Crude oil production this year is running at 559,000 barrels per day (bpd), below the peak 847,000 bpd in 1998.

There are 34 drilling rigs operating in Vaca Muerta and there is a need for 19 more, said Omar Gutierrez, governor of Neuquen province. The province hopes soon to match the region’s 308,000 bpd oil peak and hit 140 mmcmd of gas by 2030, he said.

Water recycling and other materials will be needed to increase shale output, added Marcelo Robles, a PanAmerican Energy manager.

Horacio Marin, oil producer Tecpetrol’s Exploration and Production chief, said the province could double its crude oil production and grow gas output through 2030 with an additional $7 billion devoted to drilling and completion, and $12 billion in infrastructure investments.

Construction this year will begin on a gas pipeline from Vaca Muerta to hubs in the North which in the next year will ease bottlenecks that have pipeline utilization rates at over 90%. Exports through another gasline to Chile could also help ease the transportation issues.

A second segment of the gas pipeline to the North has not yet been put to auction.

Reporting by Marianna Parraga; additional reporting by Eliana Raszewski in Buenos Aires; editing by Gary McWilliams and Lisa Shumaker

reuters.com 09 29 2022

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top