Wednesday, December 8, 2010

Argentina Announces Shale Gas Discovery

Add Argentina to the list of countries with potential shale gas reserves.  Yesterday, YPF, a subsidiary of Spain's Repsol, announced that it had discovered 4.5 Tcf of shale gas in the Loma de la Lata Field in the Patagonian province of Neuquen.  The government had previously hinted that the prospect could be as large as 257 Tcf, but that is unproven.

This is big news for Argentina, which has become a net gas importer.  There are questions about the find's economic viability, but it is a big deal in a country that hasn't seen much new gas production of late.

Interestingly, the Argentine announcement had a very American flavor.  The announcement was timed to coincide with a public offering of YPF's stock, not unlike the timing of Chesapeake Energy' "discovery" of the Haynesville Shale and its own financing efforts in March 2008.

I guess next steps are for Repsol or YPF to make a minority investment in an American producer's shale gas field.  I'm sure Chesapeake has approached both companies with investment packages by now.

2 comments:

Anonymous said...

FYI - your new rig-count header says, "shapshot" instead of the intended, "snapshot."

No big deal, just thought you'd want to correct it.

Tommy Smith

Robert Hutchinson said...

Thanks!