POLICY
UPDATE
ENERGY
TECHNOLOGY
Energy
ARGENTINA’S SHALE GAS REVOLUTION
FRANCISCO RESNICOFF AND GABI HUESCA
The boom in shale gas—natural gas trapped in shale deposits— is no longer a North American
phenomenon. Argentina, with 774
trillion cubic feet (Tcf) of recoverable shale gas resources, holds the
world’s third-largest reserves—
placing it behind only China ( 1,275 Tcf)
and the United States (862 Tcf).
With nearly 12 percent of global
shale gas resources, is Argentina
poised to become a global energy
player? With the right policies and
investments, Argentina could experience a shale gas (and, to a lesser
extent, oil) boom similar to that of
the U.S., where from 2000 to 2010
shale gas went from 1 percent to 23
percent of U.S. total gas supply.
The Neuquén Basin in Argentina’s
southwest shows the greatest
potential for unconventional gas
development. Spain’s Repsol and its
Argentine subsidiary, Yacimientos
Petrolíferos Fiscales ( YPF), found
4. 5 Tcf of tight gas (natural gas
stuck in unusually impermeable
rock) in 2010, and 927 million
barrels of shale oil in November
2011. Other oil companies—such
as ExxonMobil, Petrobras, EOG
Resources, Pan American Energy,
Total, and Apache—are focusing
on the basin as well. They will
spend approximately $4.5 billion in
explorations in 2012.
150 Americas Quarterly SPRING 2012
AMERICASQUARTERLY.ORG
