Argentina Shale Boom Signals a Transforming Energy Path

Argentina’s shale output accelerates as reforms and rising production position the country for strong future export potential

24 Nov 2025

Argentina’s Vaca Muerta shale basin is entering a faster phase of development, with national crude output reaching about 747,000 barrels a day in late 2024. The increase has renewed global interest in a resource long seen as underused.

The country’s largest shale producer has not announced a major output milestone, but executives say unconventional resources now sit at the core of its long-term strategy. Development is focused on scalable zones that have shown stable production and growing potential for exports.

Other operators are adjusting their plans as drilling expands. Vista Energy is broadening its development area with investments designed to lift future volumes, signalling stronger confidence in both the basin’s geology and its maturing supply chain. Industry discussions have also touched on possible portfolio shifts by groups such as TotalEnergies, though no confirmed divestments have been disclosed. The debate reflects how companies are rethinking capital allocation as competition within the basin increases.

Recent policy changes have supported the acceleration. Measures aimed at labour flexibility, export access and investment incentives have improved operating conditions and encouraged new spending. Analysts say the combined effect of these reforms and consistent performance is helping turn Vaca Muerta into one of the region’s more reliable engines of growth, with capacity to expand its role in export markets.

Challenges persist. Infrastructure has not kept pace with drilling activity, and delays in pipeline projects continue to restrict efficient transport of crude to refineries and ports. Policy shifts also influence investment schedules, creating uncertainty around longer-term commitments. Even so, rig activity is rising and several long-planned projects are advancing.

If current trends continue, Argentina could emerge as one of the fastest-growing shale regions worldwide and establish a more durable presence in global oil markets. The sector’s outlook remains in flux, but Vaca Muerta is already reshaping the country’s energy landscape.