Argentina's shale boom ends

Shale oil and gas production in Argentina’s Vaca Muerta has increased sharply over the past years. However, its growth may decelerate now as oil and gas pipelines near capacity. 

The Vaca Muerta is considered to be the second largest shale gas reserves and the fourth largest oil reserves of its kind in the world. 

According to data released by Reuters, Argentina is running out of pipelines and is struggling with a lack of fracking equipment and utilities, as well as other problems. They all threaten output growth. 

Pablo Trovarelli, head of midstream operations at a gas treatment plant run by Transportadora de Gas del Sur (TGS), noted that there isn't enough capacity to move oil to market. He said that new pipelines should be built to support gas and oil production growth. Otherwise, the company will fail to inject more gas.

According to Ricardo Markus, president of Tecpetrol, the oil and gas output could be increased if demand for oil and gas would grow as local and regional demand is not enough. Marcus said that the country should promote investment in LNG export infrastructure which it lacks.