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The Vaca Muerta Project, Shale Gas Exploration Venture, Could Be One of the Most Important for the Country’s Economy, but Must Be Buried Due to Lack of Funding. Argentina Has Lost International Credibility and Is Now Seeking Investments for Shale Gas Exploration.
Even with great potential to become a global player in shale gas exploration, Argentina risks burying one of its projects in the field, Vaca Muerta. The country’s government is rushing to enable the construction of a pipeline that could boost the venture, but lacks international credibility to secure investments. Now, the Lula government and potential credit for building the structure could be the salvation of the project.
Agreement with Brazil for Credit Could Save the Vaca Muerta Project, but It Could Be a Shot in the Foot for the Brazilian Economy
In the midst of a political credibility crisis due to the inconsistencies in its government, Argentina is in dire need of a beneficial alliance to save one of its largest projects in the fuels sector.
Vaca Muerta, located in the southern part of the country, risks being buried if there isn’t the necessary investment for the continuation of shale exploration.
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Petrobras finds high-quality oil in the pre-salt at 113 km from RJ and reignites expectations about strategic reserves in the Campos Basin.
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Ocyan opens registrations for startups focused on innovation in the oil and gas sector and will select projects for Innovation Day with the support of Nexio.
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Petrobras announces new oil discovery in the pre-salt of the Campos Basin and reinforces Brazil’s prominence with high-quality reserves that can increase production and energy revenues.
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Alert in the fuel market: Analysts and a former director of ANP warn that oil prices may worsen in the coming months due to global instability.
The Latin American country is seeking new partnerships to enable the construction of a pipeline for gas transportation, but it is unable to secure credit from any country due to fears of default.
The statement from Argentina’s Secretary of Energy, Flávia Royon, anticipating what would be an agreement between Lula and President Alberto Fernández, for the release of US$ 689 billion from BNDES for the construction of a pipeline to Buenos Aires, may have completely buried the project.
The Lula government could then provide strong support and invest in the salvation of the Vaca Muerta project, but it would be shooting itself in the foot, given that the risk of default by Argentina is quite high at the moment.
Thus, the National Congress would be watching the decisions that could be made solely to benefit the government of the neighboring country, without considering the consequences for the national economy.
Argentina Risks Running Out of Pipeline for Shale Exploration Project, Even with Great Potential of Vaca Muerta in the International Market
The growing shale production of Argentina in Vaca Muerta, a formation that rivals the US Permian Basin, risks running out of pipeline.
The gas exploration project is one of the most promising in the entire global market, and Argentina is now racing to enable the construction of the pipeline to move it forward.
The formation, in southern Patagonia, is the size of Belgium. It has the second-largest reserve of shale gas in the world and the fourth-largest shale oil deposit.
Thus, it has the potential to become one of the largest sources of shale gas supply in the world, strongly benefiting the economy and social development in the country.
Despite this, Argentina’s low credibility in the international market now poses significant problems for the continuity of the project.
On the ground, in the key shale city of Vaca Muerta, in Anelo, signs of tension are clear. The red gravel roads remain unpaved, and many homes are not connected to sewage and water.
The government is trying to enable a LNG bill that could attract investments to the country, but nothing has been finalized yet.
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