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Source: Bloomberg
By: Hugh Bronstein
05.22.2014

Argentina has won the "geological lottery" with its 1,000-foot-thick Vaca Muerta shale oil and gas field in Patagonia, a spokesman for Chevron said on Thursday, as the U.S. energy giant increases its investments in the country.

The company and state-owned oil firm YPF announced plans last month to invest an additional $1.6 billion to develop Vaca Muerta.

Some studies indicate Argentina is sitting atop a shale bounty that could transform the outlook for the Western Hemisphere's supply and secure the South American country's energy self-sufficiency for decades.

Asked what was the key reason behind Chevron's decision to increase its investment in Vaca Muerta, Chevron spokesman Kent Robertson answered: "We like the rock. That's first and foremost. Drilling costs are coming down and the well results so far were sufficient to warrant additional investment."

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