June 22, 2016 -- The Saga Continues -- Vaca Muerta -- More "Muerta" Than "Viva"

Active rigs:

	6/22/2016	06/22/2015	06/22/2014	06/22/2013	06/22/2012
Active Rigs	27	75	189	189	211

RBN Energy: a propane-laden VLGC inaugurates the expanded Panama Canal.

After the $5 billion-plus expansion of the Panama Canal is dedicated this Sunday, June 26, the first “New Panamax” vessel scheduled to pass through the canal’s new, longer, wider locks will be the Lycaste Peace, a Very Large Gas Carrier (VLGC) that is transporting propane from Enterprise Products Partners’ Houston Ship Channel export terminal to Tokyo Bay in Japan.

What remains to be seen, though, is how many other supersized vessels carrying propane, liquefied natural gas (LNG) or other hydrocarbons will follow, and how soon. Today, we mark the formal opening of the newly enlarged Atlantic-Pacific short-cut with a look both at the game-changing potential of the expanded canal and the realities of today’s energy and shipping markets.

For more on how US ports are prepared for the Panama Canal expansion, see this post.

Vaca Muerta? More "muerta" than "viva"? From Rigzone: 

When benchmarked against North American plays, Shell’s Argentina shale wells rank among the top one to two percent, Laurens Gaarenstroom, Royal Dutch Shell’s general manager, emerging basins, Latin America, told reporters during a media event Monday in Houston.

But costs to develop Argentina’s Vaca Muerta resource are way too high versus North America. The high costs are due to a lack of native oilfield services industry in Argentina – meaning that most equipment has to be imported – and high labor costs.

Shell had to spend a significant amount of money initially on data acquisition to learn about the basin, the company said. But it has managed to reduce its well costs – which were running more than $30 million each – by 50 to 60 percent.

Shell is continuing its journey to further reduce costs as it continues to learn about Argentina’s subsurface, Gaarenstroom said. Gaarenstroom said Shell believes the estimated ultimate recovery for its black oil wells is close to one million barrels. Gaarenstroom credits Shell’s results in Argentina with the power of its shale operations and personnel being together in Houston as one unit, and the ability to learn from other operations.