AI Redefines How South America’s Shale Competes

Operators in Argentina’s Vaca Muerta turn to data tools to speed decisions and cut costs as development accelerates

7 Jan 2026

Artificial intelligence is moving from trial projects to daily use across South America’s shale oil and gas sector, as operators look to improve decision-making in fields where delays are costly and margins are tight.

The shift is most evident in Argentina’s Vaca Muerta formation, one of the world’s largest shale plays. As drilling activity increases, producers are relying more heavily on digital systems to manage complex operations spread across wide areas. AI-based analytics are increasingly used to plan wells, schedule maintenance and monitor performance, replacing spreadsheets and experience-based judgement.

State-backed YPF, the country’s largest energy producer, has been central to this effort. The company has invested in centralised data platforms and AI-enabled tools to bring greater consistency to operations that were previously managed on a well-by-well basis. Executives describe the focus as operational discipline rather than experimentation, aiming to improve repeatability as development scales up.

Oilfield service companies are also expanding their digital offerings. Groups such as Halliburton are embedding AI into operational platforms designed to standardise execution and reduce inefficiencies in the field. Industry attention has increasingly shifted towards these technology deployments, rather than mergers or acreage deals, as companies seek advantages in how work is carried out.

Operators say the main benefits are speed and anticipation. Real-time data allows teams to identify problems earlier, adjust drilling plans more quickly and co-ordinate crews more efficiently. Predictive models are updated as new data arrives, offering greater confidence in decisions that were once based largely on historical results.

The trend reflects broader changes in the global energy industry. Investors and regulators are demanding better operational performance, more transparent reporting and stronger control of emissions. Digital systems are becoming a key tool in meeting those expectations, particularly in unconventional oil and gas developments.

Challenges remain. Integrating legacy systems is complex, skilled data specialists are in short supply and cybersecurity risks increase as operations become more connected. Even so, the direction is clear. In South America’s shale basins, data is becoming as important as geology, and AI is emerging as a tool to help the region compete internationally.