Shale Oil Now Makes Up 72% of Argentina's Crude Output, Data Shows

Argentina's oil and gas sector is currently thriving, thanks to the exploitation of the Vaca Muerta shale formation in northern Patagonia. In July 2026, shale oil production reached an all-time high of 648,347 barrels per day, accounting for 72% of the country's total petroleum output. This surge in oil production has been driven by the Vaca Muerta shale, which boasts geological advantages that set it apart from other major shale plays, such as the Permian, Bakken, and Eagle Ford.

The formation's thick shale, higher organic content, and higher reservoir pressure allow wells to sustain output longer before reaching peak production. Shale gas production in Argentina has also grown significantly, with an average of 3.9 billion cubic feet per day in July 2026, up 4% year over year. This expansion in shale gas production has bolstered energy security in the Americas.

With conventional oil output in decline and Vaca Muerta shale remaining largely untapped, the sector is on track to become a pure unconventional producer. Major energy companies, including Chevron, Shell, and BP, are actively investing in the Vaca Muerta, with Chevron planning to invest $13.8 billion to develop its wholly owned and operated El Trapial acreage.