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Text Book Risk/Reward ? Already the world's No. 3 corn and soybean exporter, Argentina stands to become a major oil and gas producer as well if the government can attract the tens of billions of dollars it needs to exploit the Vaca Muerta (Dead Cow) shale formation. Despite Vaca Muerta's vast potential, investment in the formation has come slowly so far.
Seems to me that Artic oil made accessible by global warming (accelerated by fossil fuel combustion - there must be a moral there somewhere) will be less costly than Argentine (or anyone else's) shale.
Comments
Already the world's No. 3 corn and soybean exporter, Argentina stands to become a major oil and gas producer as well if the government can attract the tens of billions of dollars it needs to exploit the Vaca Muerta (Dead Cow) shale formation.
Despite Vaca Muerta's vast potential, investment in the formation has come slowly so far.
Dow Chemical Co (DOW.N) has signed on to invest up to $120 million in 16 Vaca Muerta gas wells, and U.S. oil company Chevron Corp (CVX.N) has agreed to invest $1.24 billion in the area.
http://www.reuters.com/article/2013/11/28/us-ypf-repsol-deal-idUSBRE9AQ1CB20131128?feedType=RSS&feedName=businessNews
"Currently Argentina faces a lot of headwinds as they are unable to borrow from the rest of the world due to their defaults and nationalization of assets, but the development of their energy assets could very well change that."
http://seekingalpha.com/article/1863941-commodities-today-companies-to-benefit-from-argentina-shale-play
Argentina markets up. Merval Argentina Index 4,454.71 YTD +125.03%
52-Week Range: 1,480.12 - 4,595.64
Investment Opps?
About 10% Argentina http://etfdb.com/etf/FRN/#holdings
Very thinly traded E T F; https://www.google.com/finance?q=NYSEARCA:ARGT&ei=UZqWUpjlL6LqsQelIA&ed=us