Shale Oil Reaches Record 72% Share of Argentina's Crude Output
Argentina's shale sector drives record production as conventional reserves continue a long-term decline.
Shale oil now accounts for 72% of Argentina's total crude production. This marks a record share for unconventional sources in the country's energy mix. Total oil output reached 902,920 barrels per day in July 2026. This figure represents a 1% increase from June. Year-over-year growth stands at 12%. The data comes from GN auto markets/energy: crude oil prices.
The Vaca Muerta formation in Neuquén Province drives this expansion. Shale oil production hit an all-time high of 648,347 barrels per day. This volume is 26% higher than in the same month last year. Conventional oil output fell to 254,574 barrels per day. This represents a 13% drop year-over-year. Conventional fields are 50% lower than a decade ago.
Natural Gas Production Remains Strong
Argentina produced an average of 5.6 billion cubic feet of natural gas per day in July. This is a 0.5% decline from the previous month. Year-over-year growth is 1.6%. Shale gas accounted for 70% of total gas output. This is the highest recorded share for shale sources. Monthly shale gas production reached 3.9 billion cubic feet per day. Only June 2026 recorded a higher monthly figure.
Vaca Muerta Attracts Foreign Investment
Continental Resources joined Phoenix Global Resources in bidding for new acreage. The bidding round occurred in August 2026. Continental agreed to acquire a 50% stake in Phoenix. This creates a joint venture with Mercuria Energy Group. Breakeven costs for Vaca Muerta range from $36 to $45 per barrel. These costs are competitive against mature U.S. shale plays. Geological advantages include thicker shale and higher reservoir pressure.
Conventional Reserves Continue Decline
Argentina's conventional oil sector has contracted for over a decade. Many fields peaked in production a decade ago. Current conventional output is 2% lower than in June. The shift to shale is accelerating as conventional assets age. Vaca Muerta is the world's second-most productive shale play. Its potential remains largely untapped. Well productivity often outperforms North American counterparts.
