Brent’s drop below $40 compromises Vaca Muerta

The fall in the price of crude oil added to the decline in recent months of the value of liquefied natural gas (LNG), which reached levels below $3 per million BTUs and the fall in demand from Asia due to coronavirus complicates Vaca Muerta. The breakeven (the value that allows recovering the investment) of Vaca Muerta is between $35 and $40. If the current price level is maintained, the scenario is compromised. With these values, it is more convenient for Argentina to import gas than to produce it, and it slows down any export project.

Source: La Nación