Argentina’s massive Vaca Muerta shale formation is driving a surge in oil and gas production, offering a critical boost to the country’s struggling economy. Located in the central southwest, the 7.7-million-acre shale play has become a cornerstone of Argentina’s energy sector, helping to push the nation toward economic stabilization under President Javier Milei’s reform agenda.
In December 2024, Argentina’s oil output reached a record 757,122 barrels per day, briefly surpassing Colombia and positioning Argentina as South America’s third-largest oil producer. Shale oil contributed nearly 60% of this output, with its share rising to 60.35% by March 2025—an all-time high. Shale oil production peaked at 452,667 barrels per day in December, underscoring the key role of the Vaca Muerta in boosting the country’s energy output.
The natural gas sector has also seen strong performance. In August 2024, production hit a record 5.4 billion cubic feet per day. Although it dropped to 4.7 billion cubic feet per day by March 2025, this still represents a substantial contribution to Argentina’s energy needs.
The transformation of the Vaca Muerta into a major energy asset began in earnest under former President Cristina Fernández de Kirchner. When Spanish energy firm Repsol failed to develop the field, the government nationalized YPF, Argentina’s state oil company, in 2012. Buenos Aires took control of 51% of the company, while the rest remained privately owned.
Despite initial concerns over nationalization, YPF has since become one of the best-managed state oil companies in the world, operating with limited political interference. Its stewardship has been key to unlocking the Vaca Muerta’s potential and propelling Argentina’s oil and gas boom.
Experts see this energy revival as a turning point. Rising hydrocarbon output is providing Argentina with valuable export revenue and greater energy independence. Coupled with President Milei’s economic reforms, it marks a rare period of optimism in a country often plagued by fiscal and monetary crises.
As production continues to grow, Argentina is expected to cement its position as a leading energy producer in the region. The success of the Vaca Muerta may well become a central pillar of the country’s long-term economic recovery.