• 1 day PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 1 day Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 1 day Syrian Rebels Relinquish Control Of Major Gas Field
  • 1 day Schlumberger Warns Of Moderating Investment In North America
  • 1 day Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 1 day Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 2 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 2 days British Utility Companies Brace For Major Reforms
  • 2 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 3 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 3 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 3 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 5 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO

One Of The Best Plays In Argentinian Shale Right Now

One Of The Best Plays In Argentinian Shale Right Now

Argentina is home to some of the largest shale oil and gas reserves in the world, and it has some of the best chances to be the first country to replicate the U.S. shale revolution outside of North America.

International investment has been tricky in Argentina since the country has largely been locked out of financial markets due to the ongoing debt standoff the government is engaged in with creditors, dating back to the country’s default in 2001.

Still, the enormous Vaca Muerta shale basin is “world class,” according to Credit Suisse analysts. The partially state-owned Argentine oil company, YPF (NYSE:YPF), stands to be a major beneficiary of an Argentine shale revolution. And there are several reasons that YPF could be a smart play for investors looking at the Vaca Muerta. Related: Why Energy Efficiency is the Cheapest Form of Energy

First, oil prices are more heavily regulated in Argentina, which hindered the company’s financial position when international oil prices were above $100 per barrel, but protect the company when prices are low. While other companies around the world are suffering from low prices, YPF can at least enjoy the certainty of regulation. Related: Top 5 Oil Producing Countries Could See Production Peak This Year

Second, the Argentine government may get a whole lot friendlier to international investors this fall after President Cristina Fernandez de Kirchner leaves office. That is especially true if the pro-business candidate Mauricio Macri pulls out a victory. But no matter who wins, there is a decent chance that the conflict with Argentina’s creditors finds a solution with the new administration. Related: Why We Should Get Used To Low Oil Prices

More importantly, the Vaca Muerta has very large oil and gas reserves and YPF is leading the charge on development. There are other large oil and gas companies operating in the Vaca Muerta, including ExxonMobil (NYSE:XOM), Royal Dutch Shell (NYSE:RDS.A), and Chevron (NYSE:CVX). But Credit Suisse says that YPF is “one of the most liquid investment vehicles for investors to get exposure to Argentina.”

Also, the company has a high return on invested capital, according to Credit Suisse, a return that is better than Chevron, for example. YPF has a 6 percent rate of growth in terms of production, a figure that is closer to 14 percent when accounting for the acquisition of assets from Apache Corporation (NYSE:APA).

For investors looking at Argentina’s oil and gas investment opportunities, YPF could be the best bet.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




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