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Released August 29, 2022 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Argentine province of Neuquen, Vaca Muerta's most prolific shale area, has presented its Vaca Muerta development plan for 2030. Governor Omar Gutierrez presented the project at the Argentine Oil and Gas (AOG) conference earlier in August.
Neuquen plays a central role in the nation's oil and gas operations given that most of the Vaca Muerta shale reservoir, one of the largest in the world, spreads across most of its territory. As a result, Neuquen has been key in the rise of Argentina's oil and gas production over the last years.
Gutierrez during his presentation at the AOG projected an oil production between 700,000 barrels of oil per day (BBL/d) and 750,000 BBL/d and a natural gas output above 140 million cubic meters per day by 2030. Moreover, the governor expects investments around US$67 billion by the end of the decade.
Meanwhile, in the Neuquen province's 2030 energy plan, announced earlier this year, the local government projected an increase in oil production to almost 700,000 BBL/d and natural gas output to 159.7 million cubic meters per day. Likewise, the local government in Neuquen expects almost 3,000 oil wells and some 1,400 gas wells to be drilled by 2030 in Vaca Muerta as part of its 2030 plan.
As a comparison, Argentina's overall oil output in July of 2022 stood at 587,000 BBL/d, while natural gas production averaged 140 million cubic meters per day in the same month.
The Neuquen province, for its part, saw an oil output of 275,000 BBL/d and 91 million cubic meters of natural gas in July this year. According to government data, this represents the highest output for the province in years. Based on its 2030 energy plan, Neuquen is expected to almost triple its oil output and raise its natural gas production by three quarters. The province alone could produce more oil than Argentina's current output.
The development of Vaca Muerta has represented a significant shale oil production boost for the South American country, as the national shale oil output from total production increased from about 8% in 2017 to about 30% in 2021. In Neuquen, shale oil grew from 37% to 80% of the region's total oil output in the same years.
The developments in Vaca Muerta have resulted from higher energy investments in the area, which led to the development of the oil and gas infrastructure. The Neuquen province, for its part, is projecting investments of US$65 billion in energy developments by 2030. In addition, other provinces where Vaca Muerta is located, such as Rio Negro or Mendoza, could also see considerable energy investments as Argentina ramps up production.
Meanwhile, midstream infrastructure in Neuquen will see several developments and improvements. The remote location of the Neuquen province from Argentina's major refineries and the sea represents a challenge for any production ramp-ups in Vaca Muerta. As a result, Argentine companies and the Neuquen government have been planning the expansion of midstream infrastructure to cope with an increase in local fossil fuel production. Some of those plans have materialized this year as Oleoductos del Valle (Oldeval) (Cipolletti, Argentina) expanded by about 25% the transport capacity of the oil pipeline section from Allen to Puerto Rosales to about 260,000 BBL/d. Similar expansion projects also are proposed for the near future in the Neuquen 2030 energy plan.
Finally, to export liquified natural gas from Vaca Muerta, the province of Neuquen is also expecting the construction of a 20 million-cubic-meters-per-day liquefied natural gas processing plant at Bahia Blanca, Quequen or San Antonio Oeste by 2029, with investments estimated at US$4.5 billion.
Industrial Info is tracking 52 oil and gas production projects, worth US$1.54 billion, in the province of Neuquen that are related to the Vaca Muerta Basin. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Neuquen plays a central role in the nation's oil and gas operations given that most of the Vaca Muerta shale reservoir, one of the largest in the world, spreads across most of its territory. As a result, Neuquen has been key in the rise of Argentina's oil and gas production over the last years.
Gutierrez during his presentation at the AOG projected an oil production between 700,000 barrels of oil per day (BBL/d) and 750,000 BBL/d and a natural gas output above 140 million cubic meters per day by 2030. Moreover, the governor expects investments around US$67 billion by the end of the decade.
Meanwhile, in the Neuquen province's 2030 energy plan, announced earlier this year, the local government projected an increase in oil production to almost 700,000 BBL/d and natural gas output to 159.7 million cubic meters per day. Likewise, the local government in Neuquen expects almost 3,000 oil wells and some 1,400 gas wells to be drilled by 2030 in Vaca Muerta as part of its 2030 plan.
As a comparison, Argentina's overall oil output in July of 2022 stood at 587,000 BBL/d, while natural gas production averaged 140 million cubic meters per day in the same month.
The Neuquen province, for its part, saw an oil output of 275,000 BBL/d and 91 million cubic meters of natural gas in July this year. According to government data, this represents the highest output for the province in years. Based on its 2030 energy plan, Neuquen is expected to almost triple its oil output and raise its natural gas production by three quarters. The province alone could produce more oil than Argentina's current output.
The development of Vaca Muerta has represented a significant shale oil production boost for the South American country, as the national shale oil output from total production increased from about 8% in 2017 to about 30% in 2021. In Neuquen, shale oil grew from 37% to 80% of the region's total oil output in the same years.
The developments in Vaca Muerta have resulted from higher energy investments in the area, which led to the development of the oil and gas infrastructure. The Neuquen province, for its part, is projecting investments of US$65 billion in energy developments by 2030. In addition, other provinces where Vaca Muerta is located, such as Rio Negro or Mendoza, could also see considerable energy investments as Argentina ramps up production.
Meanwhile, midstream infrastructure in Neuquen will see several developments and improvements. The remote location of the Neuquen province from Argentina's major refineries and the sea represents a challenge for any production ramp-ups in Vaca Muerta. As a result, Argentine companies and the Neuquen government have been planning the expansion of midstream infrastructure to cope with an increase in local fossil fuel production. Some of those plans have materialized this year as Oleoductos del Valle (Oldeval) (Cipolletti, Argentina) expanded by about 25% the transport capacity of the oil pipeline section from Allen to Puerto Rosales to about 260,000 BBL/d. Similar expansion projects also are proposed for the near future in the Neuquen 2030 energy plan.
Finally, to export liquified natural gas from Vaca Muerta, the province of Neuquen is also expecting the construction of a 20 million-cubic-meters-per-day liquefied natural gas processing plant at Bahia Blanca, Quequen or San Antonio Oeste by 2029, with investments estimated at US$4.5 billion.
Industrial Info is tracking 52 oil and gas production projects, worth US$1.54 billion, in the province of Neuquen that are related to the Vaca Muerta Basin. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project Database can click here for a list of detailed project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
