Argentinian Oil Production Continues to Fall

Argentina’s oil and gas production fell in 2009 compared with the previous year, marking the third consecutive annual decline since 2006. In 2009, oil production fell 4.3% and gas production dropped by 3.7%, to 622,949 barrels per day (bpd) and 48.41bn cubic metres (bcm), respectively – according to the Argentine Energy Secretariat.

Significantly, the oil production figures are worse than what was expected by industry professionals. Output figures estimated by the BP Statistical Review of World Energy, back in June of last year, Argentina’s oil was forecast 682,000 bpd.
According to Daniel Montamat, former Argentinian energy secretary:
‘Companies are over-exploiting mature fields whose productivity is declining.’ Montamat added that he believed this has become a more pronounced problem in recent years, ‘not only for geological reasons but also because of political realities affecting the [oil] sector.’

It seems constantly shifting rules, price controls, export taxes and incessant state intervention have collectively deterred investment – both domestic and foreign – in exploration and production.

OilVoice