Chevron: Argentina Won Lottery With Vaca Muerta Shale Field

Reuters

BUENOS AIRES, May 22 (Reuters) - Argentina has won the "geological lottery" with its 1,000-foot-thick Vaca Muerta shale oil and gas field in Patagonia, a spokesman for Chevron said on Thursday, as the U.S. energy giant increases its investments in the country.

The company and state-owned oil firm YPF announced plans last month to invest an additional $1.6 billion to develop Vaca Muerta.

"The shale play in Argentina is unique because of the rock. Its thickness. Argentina has kind of won the geological lottery," Chevron spokesman Kent Robertson told Reuters on Thursday during a trip to Argentina's capital, Buenos Aires.

Shale formations often resemble layer cakes, with shale squeezed between layers of unproductive rock.

"But Vaca Muerta is like one big cake, 1,000 feet (305 meters) thick in places, which means one well can be much more productive," Robertson said.

Some studies indicate Argentina is sitting atop a shale bounty that could transform the outlook for the Western Hemisphere's supply and secure the South American country's energy self-sufficiency for decades.

"What we've seen with YPF has been positive so far. Their per-well costs are coming down," Robertson added. "And the provincial governments in the area of Vaca Muerta understand oil development. They support it. So that's one less barrier."


12

View Full Article

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
United States Broussard: Senior Field Engineer - MWD/LWD
Expertise: Field Development
Location: Broussard, LA
 
Senior Well Engineer
Expertise: Drilling Engineering|Well Control
Location: United States
 
Brinefield Operations Engineer
Expertise: Field Service Tech|Pipeline Engineering|Production Engineering
Location: Magnolia, AR
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours