• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Thugs in Trumpistan
  • 26 mins Model 3 cheaper to buy than BMW 3 series.
  • 2 hours Would bashing China solve all the problems of the United States
  • 5 hours Pompeo's Hong Kong
  • 1 hour Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 21 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 2 hours Natural gas is crushing wind and solar power
  • 13 hours China’s Oil Thirst Draws an Armada of Tankers
  • 3 hours Coronavirus hype biggest political hoax in history
  • 5 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 12 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 7 hours Michael Moore's Controversial "Planet of the Humans" Movie
  • 8 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
Stocks To Watch As Shale Bounces Back

Stocks To Watch As Shale Bounces Back

The United States shale patch…

Oil Price Rally Breaks Records In May

Oil Price Rally Breaks Records In May

Early signs of growing demand…

Argentina’s Shale Boom On Hold As Oil Prices Collapse

Argentina’s state-held energy firm YPF slashed by 50 percent the oil production from its key development area in the vast Vaca Muerta shale play this week due to tumbling fuel demand in Argentina’s lockdown, local news outlet Rio Negro reports.

Fuel demand in Argentina, under lockdown since March 20, is tumbling, and YPF is running out of storage for its crude oil, so the state energy firm closed 50 percent of its producing wells in the Loma Campana development.  

Other companies, such as Vista Oil & Gas, have also reduced their production due to the crashing fuel demand in the country, Rio Negro reported.  

At the end of last month, YPF warned that the mandatory nationwide quarantine had already slashed fuel demand in Argentina and said there were “difficult” times ahead for the company. YPF’s executive president Daniel Gonzalez said in an internal company video seen by Reuters that Argentina’s demand for gasoline had already plunged by 70 percent five days after the mandatory lockdown, adding that diesel demand had slumped by nearly 50 percent, and jet fuel demand had crashed by 90 percent.

“This will leave us with the need to export crude oil at low prices, with which our income will clearly be negatively affected,” Gonzalez said in the video.

The crashing demand first led to refineries filling up their tanks. After stockpiles filled up storage in Argentina, it became clear that some production had to be reduced, according to the Rio Negro outlet.

So YPF moved to slash by 50 percent its oil production in Loma Campana in Argentina’s key shale play, Vaca Muerta, where the Argentine state oil firm is partnering with U.S. supermajor Chevron. YPF produces more than 40,000 bpd at Loma Campana, and it is said to have agreed with Chevron to reduce oil production, Rio Negro reported.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

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