Quote from: RE on Jul 11, 2024, 08:20 PMClearly the Argentinians have not read the IEA or BP predictions.  lol.  Arriving a little late to the party.  Now the question is, who will pony up and finance the drilling?  Since the IEA projects a supply GLUT for the next decade, it doesn't seem to be a very attractive investment opportunity.  The Brit banks aren't financing new FF drilling in the North Sea, but maybe they would hand over money to Argentina for drilling?

https://www.theguardian.com/global-development/article/2024/jul/11/argentinas-future-lies-in-the-balance-as-vast-oilfields-poised-for-extraction

Argentina's future lies in the balance as vast oilfields poised for extraction


RE

Recently, during evaluations of offshoe resources in Guyanna, this problem reared its ugly head. In the States with continuous resource development (LTO and shale gas for those unfamiliar with the terms) it comes down to IRR across a sequence of CapX investment in a cycle. They get the discount from the service companies for the work, pound it all out and stand back and check to see that the mean of the IRR for all is reasonable, and begin playing hedging games and whatnot. Reevaluate and do it again.

The international actors are completely different. Walk into the room with some energy minister or another and begin laying out costs, timing and particulars, and when you discuss the 15% iRR that can be achieved, you get told to go back to the drawing board and find 25-30% iRR projects to fund. Think of them as being loan sharks compared to how the domestic E&Ps do it.