If there is a characteristic of Vaca Muerta, it is that records do not last long. and, one year following having registered the highest activity for a first quarter, training companies reached a new record. In the accumulated between January and March, the operators and service companies registered the most intense level of work since the beginning of the shale Argentinian.
The latest official data shows that companies in Vaca Muerta completed more than 3,300 fracture stages in the first quarter of the year, which is equivalent to a year-on-year jump of more than 34%. This is the indicator that best reflects the activity in the shale.
According to the latest report prepared by the company NCS Multistage, and a survey of Power Onthe companies carried out some 3,345 frac stages in the first quarter. It is a jump of 34.77% compared to the 2,482 fractures that were completed in the same period of 2022 and that was the current record up to now.
- 3.345
- fracture stages carried out by the Vaca Muerta companies during the first quarter of the year and it is a new record.
While this is a lower mark than the industry imagined last year, the data marks a new milestone for the shale. In accordance with the roadmap that the companies had considered for this year, a monthly average of 1,400 stages was expectedalmost 850 more fractures than were finally made.
Last year some 12,522 fracture stages were recorded in Vaca Muerta and it was the highest amount for a year, closing 22% above 2021. If the trend seen up to now continues, along with the factors that had a favorable impact on activity (see below), companies are on their way to complete another record year.
Vaca Muerta: which companies registered activity in 2023
During the first quarter of the year there were eight operators that registered activity in Vaca Muerta and six service companies. This is an almost identical amount to last year, with some ups and downs.
As far as the operators are concerned, this year Pampa Energía and Capex-Capsa joined in the quarter and replaced Phoenix Global Resources and Shell, which did not make fractures. While in the case of service companies, San Antonio joined with respect to 2022.
The rest of the companies that were active in both years were YPF, Tecpetrol, Vista, TotalEnergies, Pan American Energy (PAE) and Pluspetrol. And also Halliburton, Schlumberger, Tenaris, Weatherford and Calfrac.
The most active operators of Vaca Muerta
If there is one relevant piece of information that emerges from the fracture data, it is that YPF represents half of the work carried out in the formation. The other half is distributed among the seven remaining operators, of which the contribution of four stands out: Tecpetrol, Vista, Total and PAE.
According to the data that this medium processed, YPF completed 1,666 fracturing stages in the accumulated first quarter of the year, which is equivalent to 49.8% of all the stages that were carried out in the analysis period. In year-on-year terms, the flagship oil company increased its job activity by 41%.
- 49,8%
- of the training activity was in charge of YPF, so far this year.
The second company that made the most stages this year was the Grupo Techint oil company, Tecpetrol. The firm did 400 stages, which is equivalent to almost 12% of the total. Compared to last year, the company lowered its shale activity by 12.5%.
In third position was Vista, the firm of Miguel Galuccio, which did some 349 fracturing stages in its Vaca Muerta wells and rounded off a jump of more than 279%.
- 400
- fractures made by the Techint group oil company between January and March 2023.
Closely followed by the companies Total and PAE, which made 340 and 324 fractures, respectively. The French company increased its activity by 270% year-on-year, while the Bulgheroni family company decreased its activity by 16.7%.
Both Vista, Total and PAE each took charge of 10% of the activity in the formation during the first quarter of the year.
The last companies that fractured wells in the year were Pluspetrol, Pampa Energía and Capex-Capsa that made 135, 105 and 26 fractures, respectively. Compared to last year, Pluspetrol completed one less stage, while the other two companies have no records.
The reasons for the record start
The good performance of companies in the field is not explained by a single reason, but rather by a combination of factors, some of which are specific to the industry and others to the market and policies.
At the macro level, the sustainability of international oil prices stands out, whichAlthough they fell in the first few months, they remained at a more than healthy level for the industry compared to other years. A scenario that the Organization of Petroleum Exporting Countries (OPEC) was in charge of sustaining and recently ratified with a surprise production cut.
The fixed price for local gas that was agreed with the Gas.Ar Plan gave vitality to the segment and this year there was a company that joined those that were there and began its commitment to shale gas. In addition, companies that increased their jobs were also registered compared to the same period last year.
Another relevant factor is the opening of export markets. In the case of crude oil, all new production added by Vaca Muerta It is intended for sale abroad, where companies reap higher prices than locally.
As far as gas is concerned, firm exports made by companies between October and April allow activity levels to be maintained in a period where the country’s demand is low. Added to local deliveries and spot contracts, supply is prevented from falling when there is low consumption and, therefore, the level of completion of wells is sustained.
In industry-specific factors, the reduction of costs associated with operations is highlighted, hand in hand with the automation of processes and the massification of key techniques, such as the implementation of simul fracs or simultaneous fractures. Now companies use the same equipment to fracture two wells at the same time, which reduces emissions, speeds up work and saves money.
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