Saturday, May 23, 2015
Oil Field services company Weatherford sees opportunity in Argentina
Weatherford Drilling International expects to win contracts in the next two or three months to deploy rigs to Argentina where foreign energy majors are exploring one of the world's largest shale resources, a senior company official said on Thursday.
"There is a fundamental macroeconomic need for Argentina to increase its production, the infrastructure is here, the workforce is here and the ability to explore, find and develop the resource is quicker than in most countries."
State-run energy firm YPF estimates $200 billion is required over the next decade to exploit the barely-tapped Vaca Muerta shale play, which covers an area the size of Belgium. This would help reverse the country's costly energy trade deficit.
I continue to expect Madalena Energy to do well over time as more and more wells are drilled in the Vaca Muerta shale and the volume of news continues to prove up the Argentine shale story. A new more pro-business government should get elected in October and that could be a catalyst for a perception change on all things Argentina.