Argentina Nearly Doubles Vaca Muerta Oil Estimate to 30B Barrels
CVX sits 33% above its 52-week low of $146.49 on light trading volume (0.1× avg).
Summary
Argentina's new study nearly doubles the Vaca Muerta recoverable oil estimate to 30.17 billion barrels, up from 16.22 billion in 2013. The upgrade reflects a 22% expansion of drillable area and a 54% increase in recoverable share due to better technology, not new discoveries. Chevron is a major producer in Vaca Muerta and has a $13.8 billion investment plan there, so this materially improves the long-term resource base for its Argentine operations. The news reinforces Chevron's strategic position in one of the world's largest shale plays and supports its export growth ambitions. Watch for further government policy support and infrastructure developments that could accelerate Chevron's Vaca Muerta projects.
At the time of this announcement, CVX was trading at $195.23 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $385.7B. The 52-week trading range was $146.49 to $214.71. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.