Vaca Muerta has proven to turn a profit as Shell is set to double production

Vaca Muerta has proven to turn a profit

By Energía16

18/02/2018

Vaca Muerta has proven to turn a profit over the last years. For example, Shell is now expected to increase its oil production over the course of the next two years. If the field starts bearing positive results this year, construction of the second shale oil treatment plant will begin shortly.

The company is present in a series of areas that raise high expectations. Nevertheless, most of Shell’s interests are concentrated in Vaca Muerta.

Oil news site La Comunidad Petrolera reported that heavy work in the area is very specific. It is mainly focused on the execution of pilot projects aimed at developing wells that are cheap and offer high productivity levels. This is why the company will use specific drilling and fracking schemes.

Vaca Muerta has proven to turn a profit

Shell compares the revenue obtained in local wells with that of the Eagle Ford, Permian or Canada fields. This would help get an estimation of the technical limitations of each of the Vaca Muerta fields.

Vaca Muerta has proven to turn a profit compared with other fields, in addition to the value it has acquired in recent years. Shell began its operations in less productive wells, as it had little knowledge of the play at the time and the schemes were much more conservative. Investments were 60 percent above the costs over a year ago, both for drilling and completion.

Other companies that have invested in this area include YPF. The Argentinian oil company invested an estimated $15 million to drill a super well last year, nearly double what the company invests on average on a 1,500 meter well with 18 fracking stages. The drilling periods will be extended beyond the average time to 42 days to commission the project.

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