Argentina-Exxon-Major move into shale fracking is underway
A major discovery of an enormous deposit of gas and oil in Argentina’s La Vaca Muerta has caught the attention of the oil and gas industry around the world. The Neuquén basin could increase the country’s oil reserves by over 750 million barrels. The region is also estimated to have 4.5 trillion cubic feet of natural gas.
Exxon and Petrogas Petrogas expect shale-oil and gas output to reach at least 10,000 barrels a day by 2017, Vaca Coca said in an interview in Buenos Aires. The two companies are investing about 50 million dollars to drill wells in Argentina’s southern Patagonia region this year and expect to invest between 1.5 billion to 2 billion dollars by that date.
Argentina’s shale oil and so-called tight-gas resources may exceed the 21.9 trillion cubic meters estimated by the US Energy Information Administration, Vaca Coca said. Argentina’s shale resources are the third-largest in the world after China and the US, the EIA said in an April 2011 report.