Argentina's Shale Production Hits New Highs as Vaca Muerta Drives Growth
In May 2026, Argentina reported record oil and natural gas production driven by the development of its massive Vaca Muerta shale formation. Oil output reached an all-time high of 887,227 barrels per day — a 19% increase compared to the same period in 2025 — while natural gas production rose to 5.5 billion cubic feet daily, up 11% year over year. Shale oil and gas accounted for record shares of total output at 70.6% and 69.8%, respectively. The Vaca Muerta formation is considered one of the most promising unconventional hydrocarbon plays globally with an estimated 16 billion barrels of recoverable oil and 308 trillion cubic feet of natural gas. The region's geological advantages, including thicker shale layers and higher reservoir pressure, contribute to more efficient drilling compared to U.S. shales like the Permian. Argentina has recently overtaken Colombia as South America’s fourth-largest oil producer. Despite challenges such as infrastructure limitations and operational constraints in Vaca Muerta, government investment is helping address these issues.
Topics: Argentina economic growth shale oil and gas production Vaca Muerta