Flogging a Dead Cow Can Be Profitable in Argentina
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Latin America’s second biggest economy is regarding the arrival of unconventional oil and gas on the scene is regarded as an opportunity to reverse the steady decline the country has experienced in oil and gas production. Argentinian outlook appear to be looking up, industry insiders suggest that the prospects are certainly taking many of the right boxes. Nevertheless, there are problems such as the country’s energy policies, regular tree environment and energy markets, that make the country at first sight a challenging place to invest in. However, there has been a turnaround in government attitudes towards investors as the realisation that for Argentina to duplicate the American unconventional revolution. Already, there have been a number of policy and regulatory changes to reverse the past downward spiral in investment in exploration and production, that resulted in Argentina turning itself from a net energy exporter to a net energy importer, which although politically popular has put severe economic strains on its economy.
Argentina has some of the world’s biggest and best quality reserves of shale hydrocarbons states KPMG Shale Development: Global Update 7 October 2013. The US Energy Information Administration June 2013 report estimates suggest that Argentina could have reserves of at least 2732 TCF of shale gas of which 774 TCF is technically recoverable. In comparison with its neighbour Brazil which is thought to hold a potential 906 TCF of which 206 is