Argentina's oil production fell for the seventh consecutive year in 2008, declining 1.8 % to 230 mm barrels, according to a report from an economic consulting firm. The study by Economia y Regiones found that natural gas output also fell, from 1.79 bn cf in 2007 to 1.77 bn cf last year.
Those figures "reveal the maturity and lesser productivity of the deposits" in Argentina's main fossil fuel-producing provinces, a report said.

Blaming the decline in hydrocarbons production on a lack of investment in exploration, Economia y Regiones said the trend would not be reversed in 2009 given the world economic slowdown and the fall in global prices for oil and gas.
Argentine oil production peaked in 1998 at 309 mm barrels, while natural gas output reached a high of 1.84 bn cf in 2004.

Argentina has proven crude oil reserves of 2.6 bn barrels and natural gas reserves of 15.77 tcf, the country's energy ministry says.
In recent years, growing domestic demand and stagnating production have forced Argentina to sporadically reduce or even suspend exports of natural gas to neighbouring Chile, which depends on the fuel to generate most of its electricity.

Source: www.latinpetroleum.com