Fears of oil paralysis at Vaca Muerta after freezing oil prices

he Institute of Argentina "General Mosconi" (IEA) revealed a few days ago that oil production rose 4.5% and gas production rose 9.3% last July, driven by the performance of unconventional resources. Faced with the decline of almost all conventional basins, the contribution of Vaca Muerta is indispensable.

According to figures from the Ministry of Energy, Unconventional gas production increased by 34% in July compared to July and oil production by 53%. About 15% of the total oil produced in the country comes from Vaca Muerta. It represents 21% of the total production of natural gas.

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Wood Mackenzie

Vista Oil & Gas possesses eight wells put into production in the first half in Bajada del Palo Oeste. Today, they suffer from freezing prices with paralyzed equipment. Tecpetrol He also has inactive exercises, but the exit was already scheduled before the freeze. YPF with 26 years he was accelerating activity in his oil areas on the basis of international prices, but everything can be changed. For the moment, he has not officially stopped the activity. The map of wells in full activity was completed 30 days ago with the three PAE and Shell, two of the French Total and one of Phoenix Global Resources.

Oil sources estimate that, in the 11 zones of the deposit, more than 30 drilling towers have been exploited, creating approximately 2,400 direct and indirect jobs. A tower employs about 20 people, but each active team has about 80 active people.

"National government announcements regarding the oil and gas sector are paying attention to the development achieved at Vaca Muerta in recent years, removing the necessary predictability necessary for the activity in terms of investment, resulting in imminent risk with serious consequences. for the job "wrote a few days ago Manuel Arevalo, leader of the hierarchical tankers guild of Neuquén, Río Negro and La Pampa.

Union of private oil tankers of Rio Negro, Neuquén and La Pampa, led by Senator MPN Guillermo Pereyrastay calm in the area. They promised not to move forward with force measurements, but the bases are squeezing more and more. Pereyra has 30,000 members. "They froze the price of fuel and the exchange rate of the industry. SMEs are in a limit situation »said the unionist, who looks forward to INDEC inflation in August to find out what percentage of wage increase their workers will receive in October.

"We have a revision clause in October, so with the companies, we will badyze at the end of the month the amount of the salary update. With the publication of the inflation index, we will have a projection, Pereyra pointed out to Lmneuquen. Some business executives view spreadsheets filled with numbers to learn how to handle this extra payment. Is it practical today to extract shale oil in the country?

Worry about the activity at Vaca Muerta

A deep concern is felt in the governorate of Neuquen. Neuquén owns 80% of the area of ​​Vaca Muerta. Since 2013, it has received on average about $ 5 billion in investments per year. Private workers in the province increased from 85,000 in 2009 to nearly 120,000 in June. YPF is the main investor in shale development: $ 15 billion over the last six years. The state oil company is advancing with Petronas in the construction of an oil processing plant capable of processing 50,000 barrels a day. It's a $ 70 million project, but not the only one.

In the Undersecretary of Environment of Neuquén, they began to badyze an environmental impact report of another initiative of the Argentinian-owned company: broadening the horizons of Vaca Muerta South, in the group 3. They baptized her. "Loma La Can Sur-Vaca Muerta". YPF is the engine of the deposit.

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Wood Mackenzie

Last July, the national government surrendered 87,000 meters from the port of Bahía Blanca to the Norpatagónico train. On this land, a rail freight beach will be built near Puerto Galván, so that the formations go to Patagonia loaded with inputs for the activity of Vaca Muerta and return to the port of Buenos Aires with minerals. , Fruits and Products of Regional Economies If the field is paralyzed, the concern is not just about tankers.

CEO of Techint, Paolo Rocca, fears for the production line. "What has happened in the value chain, for example, is only in Fortin de Piedra that more than 1,000 companies have contributed and today, we are worried about the situation", said in the AEA forum.

The entrepreneur wants a congressional law that predicts investments. "If the investment in Vaca Muerta stops, we go back there", Rocca added. "The speed of development of Vaca Muerta is absolutely comparable to the speed of fall"outfit William Nielsen, from the economic team of Alberto Fernandez, who revealed that he was working on a project.

YPF announced a few days ago strengthening contracts with the entire supply chain. Without options, other companies followed in their footsteps. The measure verifies profitability and jobs. In the Federation of the chambers of the energy sector of the province of Neuquén (Fecene), which brings together 400 SMEs that supply Vaca Muerta and employs 12,000 people, rejects the scope of the freeze. "It is an abuse of dominant position because it is impossible for an SME to legally challenge such measures," said the entity's secretary at Energía On. Edgardo Phielipp. Today, about 150 small businesses and subcontractor positions are at risk.

But the big challenge will be reactivating the activity on "day 91", if the energy secretary, Gustavo Lopetegui, It does not decide to extend the DNU 566 of Macri and the ruling party and opposition campaign teams define the plans for the future of one of the main sectors of the Economy that "produces" authentic dollars for Argentina.