Argentina seeks to increase production from key shale gas areas aimed to reduce its imports of natural gas, U.S. Energy Information Administration (EIA) announced Friday.
The administration said that despite the country's estimated 802 trillion cubic feet (Tcf) of unproved, technically recoverable shale gas resources, Argentina’s dry natural gas production declined each year from 2006 to 2014.
'The country has shifted from a net exporter of natural gas to a net importer. In 2015, natural gas production increased for the first time since 2006, as ongoing efforts to increase production from key shale gas areas in Argentina aimed to reduce its imports of natural gas,' the press release read.
The administration added Argentina is the third country in the world, after the United States and Canada, to commercially develop tight oil and shale gas.
'The economic competitiveness of Argentina's indigenous shale gas resources will depend on the costs of domestic drilling and completion and the productivity of newly drilled wells,' the administration argued.
The factors likely to hinder efforts to quickly increase production are its relatively high labor and imported equipment costs, shortages of specialized shale rigs, and limited proppant capacity, the Administration noted.
By Ebru Sengul
Anadolu Agency
ebrusengul@aa.com.tr