Argentina’s oil industry is experiencing a resurgence, driven by the Vaca Muerta shale formation, leading to record-breaking levels of oil production. In August 2024, Argentina produced 725,000 barrels per day, with exports reaching a high of 177,000 barrels daily. Projections indicate production could surpass 900,000 barrels by December 2025, allowing for increased exports.
To support this growth, Argentina is investing in infrastructure, such as the Otasa pipeline and the Vaca Muerta Sur pipeline. These developments aim to boost exports and drive economic growth. The country’s energy trade balance is expected to turn positive in 2024 and may reach $30 billion annually by 2030.
Argentina’s Energy Outlook
The oil boom presents both opportunities and challenges for President Javier Milei’s administration. Success hinges on adequate infrastructure, stable regulations, and balancing exports with domestic needs. Environmental concerns must also be addressed to ensure sustainable growth.
The transformation of Vaca Muerta could play a pivotal role in Argentina’s economic recovery, offering energy security and boosting overall growth. As Argentina emerges as a potential major energy exporter, the world looks on with interest, anticipating significant shifts in the global energy landscape.