Market information

In Argentina, with a background of 100 years of experience and more than 66 thousand of wells drilled, the oil and gas industry has become one of the safest and cleanest.

The estimates in terms of the potential of shale gas and shale oil set the grounds for a new energy outlook. United States Energy Information Administration (EIA) ranks the country as the second global power in shale gas and the fourth in shale oil, with 802 tcf (trillion cubic feet) of technically recoverable gas resources and 27,000 million barrels. It is feasible that the development of unconventional resources multiplies 40 times the current gas reserves and 10 times the oil reserves, allowing a significant increase of production.

In the coming years, having a primary energy matrix strongly focused on hydrocarbons, it will be necessary to increase the operating and service capacity related to the oil and gas industry. In order to satisfy the increasing demands of the upstream, midstream and downstream, it will be essential to count with equipment, chemical products, industrial safety equipment and engineering services as well as the development of specific software, among many other products. National and international companies are already operating in the region, mainly in the “Vaca Muerta Formation” (Neuquén basin) and in the D-129 formation at the Golfo San Jorge basin.

Estimations are that in 2015 the annual oil production will reach figures around 30,878,747 m3. From the total annual production, 54% is obtained through primary extraction and46% through secondary extraction. It is expected that the annual natural gas production reached 42,895,804 thousand m3.

Some figures (year 2015)

Number of wells drilled1.440
Number of active equipment (drilling, repair, completion and intervention)310
Number of wells in production (oil and gas)23.458
Refining capacity (b/day)624.000
Average gas production (thousand m3/day)117.523
Average oil production (b/day)532.114
Operating gas pipelines up to 36” (km)14.250
Gas transportation capacity (thousand m3/day)140.000
Installed power for gas transportation (HP)918.200

Oil-producing provinces

  • 30% Chubut
  • 21% Santa Cruz
  • 20% Neuquén
  • 15% Mendoza
  • 7% Río Negro
  • Remaining 7% among the following provinces: Tierra del Fuego, Salta, La Pampa, Formosa, Jujuy and the National State

Natural gas-producing provinces

  • 47% Neuquén
  • 12% Estado Nacional
  • 9% Santa Cruz
  • 8% Chubut
  • 7% Salta
  • 7% Tierra del Fuego
  • 6% Mendoza
  • Remaining 4% among the following provinces: Río Negro, La Pampa, Formosa and Jujuy.

Source: SIPG – IAPG and Ministry of Energy and Ministry of Energy and Mining of the Nation.