Vaca Muerta to Fuel Argentina's Upstream Growth for Decades
Argentina's Vaca Muerta oil and gas play has significant growth potential for at least the next decade, according to Enverus Intelligence Research. The report finds that Vaca Muerta contains an estimated 8.7 billion barrels of sub-$55 WTI oil resource and 109 trillion cubic feet of sub-$3 Henry Hub gas resource. This puts it in a strong position to continue development for years to come.
The analysis also suggests that well performance has stabilized, with wells expected to deliver estimated ultimate recoveries (EURs) near 110 barrels per foot for the foreseeable future. Outside the core, oil productivity remains resilient at 98 million barrels per thousand feet, although higher costs weigh on economics due to limited infrastructure and scale.
The principal constraint to realizing Vaca Muerta's full growth potential is market access, particularly for gas. Additional export capacity and LNG development will be required to unlock more of the resource base. According to Andy McConn, EIR director, 'The Vaca Muerta's growth potential and low-cost competitiveness are a rare combination in today's upstream market.'