Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Please Note: Platts Market Center subscribers can only reset passwords via the Platts Market Center

Enter your Email ID below and we will send you a link to reset your password.

  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you a link to reset password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber, to reset your password go to the Platts Market Center to reset your password.

In this list
Natural Gas | Oil

Argentina's fracking activity in Vaca Muerta slowed to zero in April

Commodities | Energy | Coal | Electric Power | Natural Gas | Oil | Crude Oil | Shipping | Coronavirus

Market Movers Americas, Oct 26-30: US refinery earnings to shed light on demand recovery


Platts Market Data – Oil

Oil | Crude Oil

The Growing Influence Of US Crude – A Global Perspective Webinar

Electricity | Electric Power

Hurricane Zeta cuts power in Southeast, ice storm cuts power in Okla., Texas

Argentina's fracking activity in Vaca Muerta slowed to zero in April


Fracking stages fell from 430 in March

Oil demand fell by more than a half in April

Fracking recovery hinges on emerging from coronavirus shutdown

Buenos Aires — Fracking activity in Argentina's Vaca Muerta shale play slowed to zero in May, as low demand, low prices and limited storage capacity discouraged new developments, a report showed Tuesday.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The number of fracking stages in the play was down from 430 in March and 350 in April 2019, according to data compiled by Houston-based services company NCS Multistage.

The pullback in activity came as the federal government locked down the economy on March 20 in an effort to contain the spread of the coronavirus.

With most businesses out of action and the 45 million population under strict stay-at-home orders, oil demand fell by more than a half to around 200,000 b/d, according to most estimates. This led refiners to scale back crude runs as diesel and gasoline demand fell by 60% to 80%, the estimates show.

Onshore storage capacity soon filled, forcing producers to shut wells and scale back drilling activity.

While a few companies have hired tankers to store crude offshore or exported surplus production, a plunge in international oil prices and demand has not been enough to keep up production.

Production from Vaca Muerta, one of the world's biggest shale plays, likely plunged in April, the first full month of the quarantine, which has been extended several times to a latest proposed end date of May 10. No official data is yet available for production in the play in April, however.

The play produced a record 123,422 b/d of shale oil in March, according to the Department of Energy, Mining and Hydrocarbons in Neuquen, a province home to most of the play in northern Patagonia.


It could take awhile for fracking activity to return to previous levels. The lack of storage capacity, closed wells and low demand "is a combo that will make recovery very slow," said Luciano Fucello, who runs NCS' business in Argentina.

Mexico City-based Vista Oil & Gas, for example, said it has shut in its shale oil production at its first development block in Vaca Muerta, preferring instead to keep down costs and preserve cash during the period of low demand.

It is uncertain how long it will take for demand to recovery. A lot hinges on the quarantine, which could yet be extended from May 10 if COVID-19 cases continue to mount. The pandemic has left 4,887 people affected and 260 dead since the first case was confirmed at the start of March, according to data compiled by Johns Hopkins University's Coronavirus Resource Center.

"We are all concerned about the economy, but we are more concerned about people's health," Argentinian President Alberto Fernandez said late Monday on a local cable news network. "I don't want urgency to infect many people. That is what I'm trying to avoid," he said, adding that the idea is to gradually lift the quarantine "so that normality returns."

On April 26, his government started allowing more businesses to start up again and people to go out more. This helped increase diesel and gasoline demand in the last week of April, Production Minister Matias Kulfas, who oversees energy affairs, said last week.

Fernando Meiter, CEO of energy research firm TNS Latam, said he does not expect fracking activity to pick up until after the health crisis, but warned that there are other hurdles. The country is at risk of defaulting on $65 billion in foreign debts on May 22, which would cut companies off from the low-cost financing they need to develop Vaca Muerta.

"You have to resolve the debt," he said. "You can't think of investment when the country is on the verge of default."

Vaca Muerta, which is being developed by majors like Chevron, Shell and Total as well as local companies including state-backed YPF and BP-backed Pan American Energy, has been driving a recovery in the country's oil production from a 28-year low of 479,000 b/d in 2017. The country's total oil output reached 518,468 b/d in March, up 3.2% year on year, according to data from the national Energy Secretariat.