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Argentina becomes the fourth largest oil producer in South America

2026-01-06View Original

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  According to data from November 2025, thanks to the large-scale development of shale oil and gas, Argentina has overtaken Colombia to become South America’s fourth-largest crude oil producer.   Data from November 2025 show that Argentina’s daily crude oil production reached 844,400 barrels, a 12.5% increase on a year-on-year basis. The core increase came from the Vaca Muerta shale area; that month, the daily output of shale oil from this area was 578,500 barrels, a surge of 30.68% on a year-on-year basis. It accounted for 68.51% of the country’s total output, making it the main driver of the overall increase. Natural gas production fell 7% year-on-year to 4.2 billion cubic feet, hitting a new low since December 2023. Although Wacamurta shale gas still accounts for 65% of the country’s total production, it declined by 1% due to factors such as gas well maintenance, reduced drilling activity caused by low prices, and insufficient infrastructure.   It is reported that the shale energy revolution has brought significant economic benefits to Argentina; in 2024 the country achieved a net energy export, recording its largest energy surplus in nearly two decades, which provided crucial impetus for economic recovery. Analysts predict that by 2030, Argentina’s daily crude oil production could exceed 1 million barrels, while the development of shale gas may push daily natural gas production above 6 billion cubic feet. However, the expansion of natural gas production remains constrained by inadequate infrastructure and the pace of price recovery; factors such as fluctuations in international capital and geopolitics may also affect the timing of investments and the realization of production capacity. Overall, the development of the Vaca Muerta shale has reshaped Argentina’s energy landscape. The country’s cost-effective exploitation methods and long-term capital investment have reinforced this advantage; increased crude oil production and higher net energy exports have improved the economic fundamentals. In the case of natural gas, however, it is necessary to overcome infrastructure and price barriers in order to fully realize its resource potential.

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