Argentina reports 89% surge in Vaca Muerta oil resource estimates

Argentina has announced a significant upward revision of its oil resource estimates in the Vaca Muerta formation, a vast unconventional hydrocarbon basin. A new technical report reveals an 89% increase in estimated recoverable oil resources compared to the last assessment in 2013, bringing the total to an impressive 30.17 billion barrels.

This substantial increase nearly doubles the 16.22 billion barrels estimated by the U.S. Energy Agency in 2013. The latest study was a collaborative effort, commissioned by Argentina's Secretariat of Energy and conducted by the Argentine Institute of Oil and Gas (IAPG). It involved technicians from seven leading oil companies operating in Argentina, YPF, Pluspetrol, Pan American Energy, Pampa Energía, Vista, Chevron, and Tecpetrol, along with academics from the University of Buenos Aires and the National University of La Plata.

The report also highlights an expansion in the formation's potential, with a 22% increase in the total surface area deemed viable for drilling. Furthermore, the "useful thickness" of Vaca Muerta, referring to the layers of rock suitable for extraction, has grown by 39%. Combined with a 54% improvement in the "recovery factor", the percentage of oil extractable with current technology, these advancements explain the near doubling of estimated total resources in just over a decade.

Located in southwestern Argentina, Vaca Muerta is already recognized as the world's second-largest reserve of unconventional gas and the fourth-largest of unconventional oil. The formation, which began large-scale exploitation by YPF in 2013, has attracted approximately $52 billion in investments. This development has been pivotal for Argentina, enabling substantial reductions in gas imports and generating growing hydrocarbon export surpluses, thereby restoring a surplus in the nation's energy balance.