Argentina Shale Special Investment Report

Category
Special Reports

The new revised and extended Argentina Shale Special Investment Report is the most comprehensive guide to the risks and rewards presented by this unique investment opportunity.

Argentina has emerged as the world’s second-largest shale play after the US. The country has shale gas reserves of 23 tcm and 27 billion barrels of tight oil, which have attracted majors like Chevron, Petronas and Sinopec to forge partnerships with state-run YPF to expedite production.

This updated 37-page special report analyses the potential of this resource to transform Argentina’s energy landscape. It assesses the economic and political risks, provides in-depth analysis of drilling costs, company profiles and a contact list of the firms operating in the Argentine shale patch.

It also includes a forensic breakdown of the country’s new hydrocarbon law, assesses infrastructure challenges and looks at the need for new investment and workers. Improving drilling efficiencies and the formation of a well-equipped services industry are other core themes.

The report is essential reading for companies interested in investing in one of the most exciting areas for exploration and production in the global oil industry.

 

TABLE OF CONTENTS

RISK AND REWARD IN ARGENTINE SHALE

  • After a decade of dwindling oil and natural gas production, Argentina’s shale plays could turn things around if investors continue to come forward and remain committed.

OIL MAJORS TAKE UP POSITION

  • Chevron, ExxonMobil, Shell and others have secured licences to develop Vaca Muerta, but more investment is needed.

OIL REFORMS HELP< BUT MORE NEEDED

  • As the government takes steps to spur investment, many companies are waiting for a new administration to take office later this year before committing to further spending.

ARGENTINA'S NEW HDROCARBON LAW

  • The 2014 reform included incentives for shale development, but a primary challenge remains to attract more operators in the fields. (Includes detailed breakdown of the law and Key Facts box)

COMPANY PROFILE: ANDES ENERGIA

  • Though relatively small, Andes Energia has secured a major slice of Argentina’s shale acreage.

CUTTING SHALE DEVELOPMENT COSTS

  • Vaca Muerta may be as productive as the Eagle Ford shale in the US, but the conditions above ground are not as good. Cutting costs is a new priority.

ENHANCING EFFICIENCIES

  • Operators must bring down drilling costs to develop Vaca Muerta, with longer horizontal laterals, slim-hole drilling, walking rigs and new proppants being introduced.

COMPANY PROFILE: SHELL

  • The Anglo-Dutch super-major aims to put Vaca Muerta into factory-mode production, though it is adopting a cautious approach that its peers and competitors can learn from.

HELP WANTED: THE NEED FOR WORKERS

  • Argentina has a 100-year-old oil industry, but thousands of more engineers and field workers must be recruited and trained to put Vaca Muerta into full swing. Where will they come from?

INFRASTRUCTURE CHALLENGES FOR VACA MUERTA

  • If Argentina is to unlock its shale potential, the capacity of pipelines, refineries and roads must be increased to prevent bottlenecks. This presents risks, but also investment opportunities.

BUILDING UP THE SERVICES INDUSTRY

  • Italian, Russian and other foreign oil services companies want to break into the Vaca Muerta, with local firms preparing for a surge in competition. Where are the gaps in the market for oilfield service companies?

HIGH INFLATION, FEW DOLLARS: ECONOMIC AND FISCAL CHALLENGES

  • The big negative for Vaca Muerta is that it is in Argentina, where economic and fiscal constraints have kept oil companies on the sidelines for years. Could things change with a new government in 2016?

WHAT NEXT FOR ARGENTINE SHALE?

  • Vaca Muerta is one of several unconventional plays with potential in Argentina, with the Agrio and Los Molles formations also catching the attention of investors.

WHO'S WHO IN ARGENTINA'S SHALE INDUSTRY

  • Company and contact details of operators active in the Argentine shale patch.

Edited by

Ian Simm

Editor

Any questions? Please get in touch