AI Powers Smarter Shale Drilling in Argentina’s Vaca Muerta

Shell and Halliburton bring AI to Argentina's shale heartland, driving efficiency with smarter designs and data-driven decisions.

8 Aug 2025

Artificial intelligence is reshaping Argentina’s Vaca Muerta formation, accelerating the shift from costly experimentation to smarter, more efficient shale development. Long seen as a high-risk frontier, Vaca Muerta is now emerging as a testbed for AI-driven breakthroughs that could reshape the region’s energy trajectory.

Shell, working with NOVI Labs, is using machine learning models to derive production scaling factors and optimize completion designs. By training algorithms on geological and historical production data, the partnership is enhancing type curve generation and field development planning, both critical to shale efficiency.

This marks a strategic evolution in how shale is developed. Rather than rely solely on trial and error drilling, producers are now using AI to identify optimal fracture strategies and flow regimes before operations begin. Early indications point to double-digit improvements in initial well performance, offering a glimpse into the transformative potential of data-driven design.

“AI is helping us reduce uncertainty and shorten the path to first oil,” said a project engineer involved in Shell’s Vaca Muerta activities. “It’s not just about moving faster. It’s about executing with precision and confidence.”

Challenges remain, particularly in legacy fields lacking the digital infrastructure to support real-time analytics. Cultural resistance to AI also persists, as some teams remain cautious about trading hard-earned field intuition for machine-driven recommendations. Still, industry leaders are working to close that gap.

Service giants like Halliburton are offering AI-powered decision support suites such as the DS365 AI Suite to help engineers interpret models, build trust, and improve operational execution. These enterprise-grade platforms are designed to make advanced analytics more accessible and actionable for field teams.

As adoption spreads, experts believe Vaca Muerta could soon rival the operational efficiency of North America’s most advanced shale basins. The goal is not to replace human insight but to augment it, bringing faster insights, clearer foresight, and stronger performance.

For Argentina’s shale industry, embracing AI is not just about staying competitive. It is about unlocking a more productive and resilient future.