Argentina’s shale oil resource could be similar in size to that of the Permian Basin, the top oilfield in the U.S., Continental Resources CEO Doug Lawler said on Tuesday.
Argentina’s projections show that oil output could reach 1.5 million to 2 million barrels per day in the next few years, but the U.S. oil firm believes the potential could be higher, Lawler said during an Energy Aspects conference in Washington.
“It has the characteristics, the rock quality that it could very easily be another Permian in our mind,” he said.
Continental increased its position in Argentina’s Vaca Muerta shale play last month when it purchased a non-operating interest in four blocks in the basin.
Argentina needs significant investment in its oil infrastructure and reforms, including tax incentives, to encourage investment, Lawler said.
He added he was not worried about risks of nationalization in South America, saying he was confident in Argentina and that there are risks in investing anywhere, including in the United States.
Harold Hamm, the founder and chairman emeritus of Continental, said the company is looking at energy production in Venezuela, and the administration of U.S. President Donald Trump has to create the right conditions there. Trump has urged American oil firms to spend $100 billion to revitalize Venezuela’s energy industry.
Continental is also evaluating opportunities to sell natural gas to help power data centers, Lawler said.
(Reporting by Valerie Volcovici and Timothy Gardner in Washington; writing by Sheila Dang; editing by Rod Nickel)