Argentina's Oil Production Surges to Record High

Argentina's oil production surged to a record high in July 2026, with shale oil accounting for 72% of the country's total output. According to OilPrice, the country produced 902,920 barrels per day, a 12% increase from the same period last year. The Vaca Muerta shale formation in Neuquén Province was the main driver of growth, with production rising by 1.2% month-over-month and 26% year-over-year.

The growth in oil production is expected to contribute significantly to Argentina's export revenues, which currently rely heavily on soybeans. Oil has become the country's second most important export commodity, accounting for nearly 11% of total export revenues. The surge in production also highlights the importance of the Vaca Muerta formation, which continues to attract significant investment.

Chevron plans to invest $13.8 billion in developing the El Trapial blocks in Vaca Muerta, with implementation dependent on approval from Argentine authorities. State-owned YPF has also submitted a plan for a $51 billion integrated liquefied natural gas project, which would involve Italy's Eni and XRG, a subsidiary of Abu Dhabi National Oil Company.