Argentina's Economy
Vaca Muerta: Shale Oil and Gas
How Argentina's Vaca Muerta shale formation turned it from an energy importer toward an exporter, and why energy could ease its dollar shortages.
Vaca Muerta (“dead cow”) in Neuquén province is one of the world’s largest shale oil and gas formations.
Size
It holds huge reserves of shale gas and oil, among the largest outside North America.
Development
- Fracking began in the 2010s, led by state oil company YPF and foreign partners.
- Production rose strongly in the 2020s.
Impact
- Argentina moved from importing energy to running an energy trade surplus in 2024.
- New pipelines carry gas to Buenos Aires and potentially for export.
- Plans for LNG export terminals.
Why it matters
Energy exports bring dollars, easing Argentina’s chronic shortages.
Challenges
- Infrastructure bottlenecks.
- Investment needs policy stability.
- Environmental concerns about fracking.
RIGI
The Incentive Regime for Large Investments (RIGI), passed in 2024, offered tax and currency benefits to attract big investments in energy and mining.
A new gas pipeline from Vaca Muerta lets Argentina stop importing expensive LNG in winter, saving dollars.
Shale energy from Vaca Muerta is becoming a major export.
- Vaca Muerta is one of the world's largest shale formations.
- Production rose strongly in the 2020s.
- Argentina ran an energy trade surplus in 2024.
- RIGI (2024) aims to attract large investments.
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