Reuters: Shale plays reduce political risk: Kemp

Shale plays are ideal for oil and gas companies that need to limit risk in countries with a history of political and economic instability and poor respect for private property.

The ability to manage political risk, coupled with a world class resource, explains why international oil firms are showing strong interest in the shale resources of Argentina's Neuquen basin, despite the country's record of political and economic unrest, serial default, and expropriation of foreign property.

The cash flow profile of a shale play like Neuquen makes it far less dangerous than a megaproject like Kashagan in the Caspian Sea or a deep water play off the coast of Brazil, Russia or Mozambique.
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