Argentina’s shale production expected to normalize after roadblocks lifted

Health workers who blocked Argentina’s vast shale game Vaca Muerta for three weeks in strike action to demand a pay rise lifted the blockades this week and moved to block other parts of the province.

Health care workers in Argentina began striking earlier this month in an attempt to get the government to recognize and reward their work during the COVID-19 outbreak. Protesters blocked Argentina’s largest shale deposit, Vaca Muerta, in Neuquen province on April 7, disrupting operations. About twenty days later, they mentionned they had lifted the blockades around Vaca Muerta, while industry sources on the site told Reuters that traffic was starting to return to normal.

The strike and roadblocks slowed the production of oil and gas in Vaca Muerta and disrupted the distribution of fuel in the region.

Vaca Muerta, Spanish for “ dead cow, ” has been nicknamed the Argentine Permian, although its geological properties have been more appropriately compared to the Eagle Ford.

Health workers have yet to accept the government’s proposals for higher wages as they deem them insufficient, but have agreed to relocate roadblocks away from Vaca Muerta.

“We will be moving to different parts of the province. We will continue to assess further steps to be taken to ensure the government understands our concerns, given that we are hit by a second wave of COVID-19 cases, ”Marco Campos, a spokesperson for the COVID-19, told Reuters. health workers.

However, workers are not ruling out the possibility that they will resume blocking Vaca Muerta in the future.

Due to the three-week roadblocks, natural gas production at Argentina’s largest shale field fell 3.5 million cubic meters per day and crude oil production fell about 10,000 barrels per day. day (bpd), as estimated by Argus. The blockades have also crippled some drilling rigs and fracking equipment.

By Charles Kennedy for Oil chauffage

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