• 4 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 12 minutes Western Canada Select price continues to sink
  • 18 minutes Starvation, horror in Venezuela
  • 14 mins WTI @ 67.50, charts show $62.50 next
  • 4 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 1 hour China goes against US natural gas
  • 51 mins How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 4 hours Is NAFTA dead? Or near breakthrough?
  • 1 hour Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 4 hours Japan carmakers admits using falsified emissions data
  • 2 days Renewable Energy Could "Effectively Be Free" by 2030
  • 15 mins Corporations Are Buying More Renewables Than Ever
  • 24 mins Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 17 hours Hey Oil Bulls - How Long Till Increasing Oil Prices and Strengthening Dollar Start Killing Demand in Developing Countries?
  • 2 days Saudi Fund Wants to Take Tesla Private?
  • 1 day Why hydrogen economics does not work
Alt Text

Egypt Aims For Natural Gas Dominance In The Mediterranean

Positioned on the Mediterranean Sea…

Alt Text

Can U.S. Shale Stop A Global Oil Supply Crisis?

U.S. shale is often overlooked…

Alt Text

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Is The Argentinian Shale Boom Finally Taking Off?

Vaca

Argentina’s state oil and gas company YPF expects its oil and gas production from shale deposits to increase 35 percent this year thanks to falling costs at the huge Vaca Muerta play, the company said. It added, however, that overall production will decline by 2-3 percent because of maturing fields elsewhere.

Drilling costs for horizontal wells had fallen to $1,390 per lateral foot at end-2017, YPF said as quoted by Reuters, versus $2,270 in 2016 and $3,050 in 2015. Thanks to this, YPF now plans to drill 100 wells in Vaca Muerta. It has also slated five pilot projects for launch this year, one of them in partnership with Norway’s state oil and gas major Statoil.

YPF also has joint ventures with Total, BP, Shell, Schlumberger, and Wintershall in Vaca Muerta, on which the Argentine company is focusing as a means of ensuring long-term oil and gas production growth.

“YPF has a total acreage of close to 5.5 million acres, reaffirming the potential in Vaca Muerta is actually huge,” the company’s chief financial officer told media at a recent conference call, adding that last month gas production from the El Orejano area hit 5 million cu m daily. YPF recently completed the drilling of its first 3,200-peter horizontal well in the shale play. Related: China Plans Record Natural Gas, Coal Production In 2018

The Vaca Muerta formation is estimated to hold some 16.2 billion barrels of crude oil and 308 trillion cu ft of natural gas, which makes it the second-largest in terms of gas reserves globally.

Among the Big Oil players who have declared interest in taking part in the development of Vaca Muerta are Chevron and Exxon. They have already invested in exploration there: Exxon has ponied up $250 million and plans to add another $10 billion to this over the next 20-30 years. Chevron invested $1.5 billion when it struck a joint venture deal with YPF three years ago.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Kshithij Sharma on March 08 2018 said:
    Argentina is just a minor player and is unlikely to have much effect on the global markets. Argentina shale oil is a small field which won't be enough to supply world demand for even 1 month.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News