Argentina Leads Shale Production Surge

Argentina’s shale boom is reshaping energy security across the Americas, driven by record unconventional oil and natural gas output from the Vaca Muerta shale.

In a decade, shale oil and gas production has grown to comprise over 70% of Argentina’s hydrocarbon output.

Government data shows Argentina’s oil production was 868,763 barrels per day in June 2026, 2% lower than the previous month, but 12.6% greater than a year earlier.

Natural gas output was 5.4 billion cubic feet per day, 1.2% lower than May 2026 and 3% less than June 2025.

Despite the monthly decline, hydrocarbon output was significantly higher than a decade earlier.

In June 2016, Argentina lifted 500,580 barrels of crude oil and 4.4 billion cubic feet of natural gas per day.

The Vaca Muerta shale formation is responsible for Argentina’s rising hydrocarbon output.

Shale oil production hit a record high of 626,077 barrels per day in May 2026, making unconventional oil responsible for 70.6% of Argentina’s total petroleum output.

Over the last year, petroleum production in the Vaca Muerta grew 28%, from 480,964 barrels per day in June 2025 to 616,490 barrels per day in June 2026.

Shale oil output was 2% lower than the previous month but constituted 71% of Argentina’s total petroleum output, an all-time high.

Conventional oil production, on the other hand, has peaked and is in decline.

In June 2026, conventional oil production was 252,273 barrels per day, 13% lower than the same period a year earlier.

Natural gas production in the Vaca Muerta is also growing.

Between June 2025 and 2026, conventional natural gas output declined by 15% from 1.9 billion to 1.6 billion cubic feet per day.

However, Argentina’s overall output only dropped 3% from 5.6 to 5.4 billion cubic feet daily.

Shale gas production is underpinning Argentina’s overall natural gas output.

Over the last year, shale gas went from comprising 66% of all production in June 2025 to 70% in June 2026.

The volume of hydrocarbons being produced in the Vaca Muerta and their proportion of Argentina’s total energy output will continue growing.

The shale play ranks among the top five globally, containing estimated technically recoverable resources of 16 billion barrels of oil and 308 trillion cubic feet of gas.

Compared to other major shale plays, the Vaca Muerta has geological characteristics that make it equal to or even superior to more prolific and developed U.S. shale plays.

Its shale thickness, organic content, and reservoir pressures are particularly notable.

Foreign energy companies continue to seek investment opportunities in the Vaca Muerta, attracted by its light sweet crude oil and potential for long-term economic growth.

Argentina’s recent record unconventional oil and natural gas output from the Vaca Muerta shale is boosting energy security in the Americas.