Can AI Make Argentina a Shale Superpower?

Tecpetrol slashes drilling costs in Vaca Muerta using AI, signaling a bold leap for South America’s energy future.

14 Jul 2025

Argentina’s Vaca Muerta just got a lot more valuable, and a lot more efficient.

Tecpetrol, one of the country’s major energy players, has cut shale drilling costs by 40% and trimmed timelines from 40 days to just 16. The game-changer is artificial intelligence.

Instead of relying on expensive directional drilling systems, Tecpetrol has turned to AI-guided downhole motors. The result is a faster, cheaper, and smarter drilling process, tailored to the region’s unique economic pressures, including inflation and currency instability.

At the center of this transformation is Tecpetrol’s Real Time Operations Center in Buenos Aires. There, engineers monitor live drilling data and use machine learning to tweak decisions moment by moment. It is not just automation. It is dynamic control, with human oversight driving machine precision.

“This approach has transformed how we work,” said one senior engineer. “We’re delivering wells faster, with fewer delays and significantly lower costs. It’s not just about drilling; it’s about redefining what’s possible.”

Vaca Muerta has long been seen as a potential rival to North American shale plays, but high costs and infrastructure gaps have held it back. Tecpetrol’s breakthrough could change that. With U.S. shale nearing maturity, global producers are eyeing new terrain, and Argentina is stepping up.

Analysts say the shift could ripple across Latin America, where similar geology and economic conditions make AI-guided drilling an attractive model. What was once a North American advantage may now power a regional leap forward.

Still, challenges loom. AI-driven operations require skilled technicians, real-time data pipelines, and trust in machines to make crucial calls. Building that ecosystem will take time.

But the early returns are hard to ignore. If Tecpetrol’s model proves replicable, Vaca Muerta might not just fuel Argentina’s energy future. It could help rewrite the global playbook on shale.