The cost X-ray reflects factors that explain the large gap with the US permium, an essential reference for the local industry.
November 12, 2025 – 7:10 p.m.
Discuss the competitiveness of Vaca Muerta compared to similar formations such as: Permian, USAwill remain the center of the energy future of the Neuquen Formation. For industry leaders, the main challenges facing this non-native watershed include: Well drilling costs in Neuquén are 30% to 40% higher than its American equivalent.
Various local industry stakeholders agree that when performing an item-by-item analysis, the maximum difference is closer to 40%. According to various companies, if this gap is not resolved, “blame” developmentBecause if you are sensitive to the international price of barrels, it threatens the profitability of your investment.
The authors identified a series of “bottlenecks” that directly impact cost structures and need to be resolved to achieve the desired competitiveness. The main thing is infrastructure and logisticsone of the main deficits that increases operational costs is the lack of proper infrastructure.
Exhibitors rely exclusively on trucks to transport raw materials such as frac sand from Entre Ríos. high logistics costs and road congestion; What river, maritime, and rail alternatives are being discussed to reduce the impact on the route if Vaca Muerta is scaled up and becomes more cost-effective?
When it comes to oil well operations, this solution will certainly involve a paradigm shift that incorporates a “factory” mode of production. In other words, all non-traditional companies achieve efficiencies in the rate of drilling, fracturing, and completing wells, but these results must be as systematic and more homogeneous as a factory production line.
Vaca Muerta is much more expensive than in the US
Argentina’s oil services sector is less open and less competitive than in the United States. An example that is always cited is that of directional drilling. There is a wide range of small businesses in the Permian that rent out some of their equipment; In Vaca Muerta, this service is “monopolized” by two major companies.
It is important for major operators to expand their “vendor lists,” known as r.Registration of suppliers of goods and serviceswhich creates more competition and lowers costs due to market dynamics.
This includes one or Land foreign offers quickly and safelyThrough partnering with local companies that understand Argentina’s tax and business culture, we need to not only accelerate the partnering process, but also create the right macro conditions for the arrival of these essential capitals: financial and technological.
Also, Introduction of more modern technologythe latest generation of rigs (drilling equipment), etc. are competitive factors. However, this progress requires Ongoing staff trainingwas identified as another concern: making the most of new technological tools.
Finally, all you need is Forget about the short term and change your perspective This is a unique situation in Argentina, where large-scale infrastructure works such as the Vaca Muerta Sur pipeline (VMOS) and the LNG export platform are also being completed, making it possible to propose different profitability thresholds, alleviating concerns about rapid returns and facilitating long-term cost reduction planning.
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