Argentina Recorded Highest Oil & Gas Production Volumes in 20 Years In July

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--In July, Argentina registered a natural gas output of 151.7 million cubic meters per day (MMm3/d), about 9.8% higher than the same month in 2023 and marking the strongest monthly production in 21 years. Vaca Muerta, the world's second-largest natural gas shale reservoir, represented 54.8% of Argentina's volumes, with 83.1 MMm3/d.

Meanwhile, the nation's oil output also registered the highest monthly volumes in 20 years, with 682,700 barrels per day (BBL/d) of oil, some 9.1% more than in July last year. Vaca Muerta, the world's fourth-biggest oil non-conventional formation, accounted for 56.6% of the volumes with 386,200 BBL/d.

YPF (NYSE:YPF) (Buenos Ares, Argentina) was the country's largest producer of oil and gas in July, representing 46% and 22% of the output, respectively.

Given Vaca Muerta's prospects, Argentina could see its output climb more than 1 million BBL/d by 2030, according to Rystad. However, the shale reservoir's midstream capacity development poses key challenges for its expansion.

The remote location of Vaca Muerta in the provinces of Neuquen, Rio Negro and La Pampa depends on oil and gas transportation to export hubs.

Last year, Argentina reactivated a 115,000-BBL/d pipeline connecting Chile to Vaca Muerta in order to expand the area's transportation capacity.

In addition, Argentina inaugurated the first section of the Nestor Kirchner Gas Pipeline, allowing companies to move natural gas from Vaca Muerta to the Buenos Aires province. The project also includes reversing natural gas pipelines and gas plants to allow for transport to Argentina's northern states. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the related project reports.

The new government of Javier Milei is ushering in investments for major infrastructure projects and developments by guaranteeing incentives for companies. Vaca Muerta's prospects are well known, though it will continue to reach new output levels with significant investments and infrastructure developments.

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