Argentina Gas Output At Highest Point In 11 years

Instant Max AI

(Energy Analytics Institute, Aaron Simonsky, 29.Jul.2019) — Production of crude oil and natural gas in Argentina continues to rise, aided by growth in unconventional volumes from the Vaca Muerta formation.

Highlights:

— Gas production in June 2019 rose 5.8% compared to June 2018; reaches highest point since September 2008

— Oil production in June 2019 rose 2.5% compared to June 2018; achieves 16 months of uninterrupted annual growth

— Production growth allowing Argentina to displace imports, increase exports

Gas Production

Argentina’s natural gas production in June 2019 reached its highest point in 11 years at 140 million cubic meters day (MMcm/d), and achieved annual growth of 5.8% compared to June 2018, Argentina’s Energy Secretariat announced in an official statement.

Total gas production growth was achieved despite a 7% decline in conventional gas production as unconventional volumes more than offset the reduction registering growth of 28%.

Argentina continued to export gas to Chile in June as volumes during the month averaged 4.33 MMcm/d and peaked at 6.3 MMcm/d, the secretariat said.

Oil Production

Argentina’s crude oil production in June 2019 reached 497,000 barrels per day (b/d), up 2.5% compared to June 2018. Production in the most recent month has achieved an accumulated 16 months of uninterrupted annual growth.

Unconventional oil production, which rose 47% year-over-year, represents 18% of the country’s total oil production. As a result of stellar oil production growth, Argentina has not imported oil for 14 months, the secretariat said.

Vaca Muerta Developments

Argentina’s Vaca Muerta formation, located in the Neuquen Basin, has the sixth largest remaining resource base in the world among all formations with ultra-low permeability. Vaca Muerta is bigger than the Permian Basin from a pure geographic perspective and the sheer size (and depth) of the play gives it the potential to be the next Permian, but there is still much to be done before that happens, according to an assessment by Exterran.

Vaca Muerta is actually undergoing massive development in 11 areas. Monthly fractures, an indicator of the evolution of production, grew 181% between 2016 and 2018, and peaked at 712 in February 2019.

During the first half of 2019, Argentina exported more than 1,000 million cubic meters. This growth has allowed the country to substantially improve its energy trade balance, which during the first half of 2019 was a deficit of $126 million compared to a deficit of more than $1,000 million in the first half of 2018.

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© Energy Analytics Institute (EAI)

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