Argentina needs the shale revolution to turn around its fuel trade deficit and revitalize its energy sector. Nationalizing assets generally tends to scare off investment or at least delay it, but the Chevron deal is a big vote of support for the development of the Vaca Muerta formation. Another vote of confidence comes from Soros doubling his stake in YPF, even after the country’s debt default. Regardless of who wins in next year’s election, Argentina seems to be in favor of ramping up investment in the Vaca Muerta shale. It could take five years before commercial levels of production starts entering the market, but so far the Vaca Muerta is off to a great start.
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