Argentina’s oil production dropped 37% to 537,000 b/d this year from a high of 847,000 b/d in 1998.
Gas production has shrunk 20% to 115 million cu m/d from 143.1 million in 2004.
According to a report by Platts, the reversal has caused shortages and a surge in imports of diesel, fuel oil and gas.
On Monday, the government ordered all producers “to present investment plans for 2014 and current production levels, part of an effort to rebuild oil and natural gas output after a decade of decline,” Platts said.
The plans are due by October 15 and monthly after that.
Chevron, ExxonMobil, Petrobras are among the producers required to notify Argentina’s government by the 15th of every month of their overall oil and gas production with a block-by-block breakdown, including number of wells drilled and progress on investment proposals.
President Cristina Fernandez de Kirchner created the federal hydrocarbons commission a year ago. It now has the authority to “revise the investment plans of oil companies and regulate their production, profits and stocks so that the country has sufficient energy supplies at what the government considers reasonable prices,” Platts said.
State-controlled YPF has plans to kick start growth with an invest $37.2 billion through 2017 to develop mature fields with secondary and tertiary techniques.
Argentina is estimated to have the world’s second largest shale reserves for gas and fourth for oil.
YPF has entered a partnership with Chevron to invest an initial $1.5 billion on shale development, Platts said.
The decline in investment and production led the government to expropriate control of YPF from Spain’s Repsol in May 2012.