Can Argentina’s Shale Dreams Power a Global Shift?

Vaca Muerta expansion and new pipelines push Argentina toward oil export prominence

10 Nov 2025

Argentina is emerging as a central player in the global shale revival, with the vast Vaca Muerta basin driving a new phase of energy development that could alter South America’s role in international oil markets.

After years in the shadow of North American producers, Argentina is advancing production through partnerships between state-backed YPF and international majors Chevron and Shell. Their joint plans target output of about 180,000 barrels per day by late 2026, rising toward roughly 550,000 barrels per day in 2027 as infrastructure expands.

At the heart of this effort is the proposed $3bn Vaca Muerta Sur (VMOS) pipeline, designed to link inland production to the Atlantic coast. Engineering and contractor participation remains under discussion, but once operational, the project could double the country’s oil transport capacity and establish a foundation for long-term export growth.

“The focus has moved from exploration to execution,” said María Ortiz, an energy strategist at GlobalData. “Companies are consolidating assets, cutting costs, and building the infrastructure needed for long-term competitiveness.”

Although Argentina’s upstream production is accelerating, it has yet to reach major exporter status. Persistent inflation, regulatory uncertainty and environmental concerns remain key challenges. Even so, rising foreign investment and deepening technology partnerships have strengthened investor confidence.

If momentum continues, Argentina could emerge among the world’s leading oil exporters within the next decade, contingent on stable policy, sustained investment and timely completion of key projects. Regional peers including Brazil and Colombia are already examining Argentina’s approach as a potential model for their own shale ambitions.

The Vaca Muerta expansion signals more than a domestic production boost. It represents a structural shift in South America’s energy landscape, built on collaboration, infrastructure and the pursuit of greater global relevance in oil markets.