Tuesday, November 1, 2016
South America becoming worlds top natural gas play
I’ve been writing over the last several months about the world’s top natural gas play — the growing demand center of Argentina.
And this week, things got even tighter in terms of supply here. Making the entire region more attractive for producers.
That became apparent from a critical piece of news emerging over the weekend in Argentina’s neighbor to the northwest: Boliva. Where lifeline exports of natgas into the Argentinean market are apparently dwindling fast.
Argentina has huge shale oil and gas potential. I am hopeful that after the recent election the pro market economy government will be able to put policies into place that will benefit the economy and the oil and gas sector in particular.
I am still a holder of Madelana Energy which has a huge acreage position in the Vaca Muerta shale. I have not heard a lot of news out of the company recently but as this area is one of most promising shale plays in the world I would expect activity to pick up with oil prices.