Shale gas in Argentina // Dead-cow bounce // Politics is the biggest hurdle to developing the enormous Vaca Muerta field
Aug 23rd 2014 | NEUQUÉN
“Argentina boasts the world’s second-biggest shale-gas reserves, most of them in Vaca Muerta. A survey by the US Energy Information Administration (EIA) suggests that the field holds 16.2 billion barrels of shale oil and 308 trillion cubic feet (TCF) of shale gas. That is more shale oil than Mexico and more shale gas than Brazil. It is enough to satisfy Argentina’s current energy demand for over 150 years, and could make the country an exporter once again.
Vaca Muerta’s geology helps. Its shale is thicker than in most formations, which means that companies can produce more from a single site. As firms become familiar with the field, budgets are already dropping: YPF says it has reduced costs from $11m per well in 2011 to $7.5m.”