Argentina Won Lottery With Vaca Muerta Shale Field - Chevron

Posted by Joseph R. Fonseca
Thursday, May 22, 2014
Image

 

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."

Many communities object to hydraulic fracturing, also known as fracking, by which water, sand and chemicals are injected deep into shale fields to unlock hydrocarbons.

Most big energy companies have struggled with the shale sector so far. Chevron will hold its annual shareholder meeting next week in Midland, Texas, in part to highlight its renewed interest in the Permian Basin in western Texas.

Huge shale reserves exist around the world, but they are often found in areas without good geological data, exploration and services companies, public support, pipeline infrastructure and the sufficient scale to make a success of drilling.

"One of the unique things about Vaca Muerta from an international perspective is that it is in an area where you've already got oil industry activity," Robertson said.

"There is already an established oil industry in the region where the shale is. You've got service companies, you've got pipelines and infrastructure," he added. "You've got existing assets that do not need to be recreated. Plus you've also got a head start in that you have knowledge of the rocks."

Asked what was the key reason behind Chevron's decision to increase its investment in Vaca Muerta, Robertson answered: "We like the rock. That's first and foremost. Drilling costs are coming down and the well results so far were sufficient to warrant additional investment."

(Additional reporting by Ernest Scheyder in New York; Editing by Paul Simao)

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Lerwick Port Promoting Shetland Fishing Industry

The importance of investment in the Shetland fishing industry has been highlighted today by Lerwick Port Authority Chief Executive, Sandra Laurenson. The industry – white fish,

Lifting of US Crude Oil Export Ban Possible within Year

The U.S. Congress could lift the 40-year old ban on domestic crude oil exports within a year as a drop in gasoline prices and the potential return of Iranian

Israeli Dockworkers End Ports Strike

Israeli dockworkers ended a two-day strike on Thursday that had shut down the country's two main seaports in protest at the creation of new foreign-run ports.   Some 2,

Finance

Hoegh LNG's Bond Issue

Hoegh LNG (HLNG) has successfully completed the issuance of a USD 130 million senior unsecured bond in the Nordic bond market with maturity date expected to be 5 June 2020.

NordLB Back to Profit

Although the crisis is not over in all segments, Germany's second-largest marine lender, Nord LB, said its shipping loan portfolio turned a corner in the first

Navios to Expand Fleet with Two VLCCs

Monaco-based tanker owner and operator Navios Maritime Midstream Partners (NAP) plans to launch syndication of a USD 205 million Term Loan B to finance the purchase

Energy

Lifting of US Crude Oil Export Ban Possible within Year

The U.S. Congress could lift the 40-year old ban on domestic crude oil exports within a year as a drop in gasoline prices and the potential return of Iranian

Duke Energy to Help Develop Jeffersonville Port Site

Duke Energy Indiana has selected a 140-acre parcel of land inside the Port of Indiana-Jeffersonville in Clark County for the utility's 2015 Site Readiness Program.

Fluxys LNG Launches Zeebrugge Capacity Consultation

Belgian gas infrastructure operator Fluxys said on Thursday it was launching a market consultation to assess demand for additional capacity at the Zeebrugge liquefied natural gas terminal in Belgium.

News

Lerwick Port Promoting Shetland Fishing Industry

The importance of investment in the Shetland fishing industry has been highlighted today by Lerwick Port Authority Chief Executive, Sandra Laurenson. The industry – white fish,

Hoegh LNG's Bond Issue

Hoegh LNG (HLNG) has successfully completed the issuance of a USD 130 million senior unsecured bond in the Nordic bond market with maturity date expected to be 5 June 2020.

Rieber offloads Polar Prince

GC Rieber Shipping has entered into an agreement to sell subsea vessel "Polar Prince", which the company had built in 1999.   The transaction gives GC Rieber

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2239 sec (4 req/sec)