Argentina's Oil Boom Reaches New Heights in May

Argentina's oil production reached an all-time high in May 2026, averaging 887,227 barrels per day, a 19% increase from the same month last year. This milestone marks the latest success story for the country's energy sector, which has been driving economic growth through increased exports.

The Vaca Muerta shale formation is at the heart of Argentina's oil boom. The basin accounted for more than 70% of the country's crude oil production in May and supplied a record share of national output. Shale gas also reached its highest contribution to Argentina's total gas production, with natural gas production climbing to 5.5 billion cubic feet per day.

The Vaca Muerta formation is estimated to contain 16 billion barrels of technically recoverable oil and 308 trillion cubic feet of recoverable natural gas, making it one of the world's most significant shale resources. State-controlled YPF plans to spend $5.8 billion in capital expenditures during 2026, with roughly 70% allocated to unconventional operations in Vaca Muerta.

Analysts expect Argentina's crude output to climb to between 1 million and 1.5 million barrels per day by 2030, provided planned investments and infrastructure projects proceed on schedule.