Argentina's Shale Boom Sets New Records as Vaca Muerta Production Soars

Argentina's oil production has reached an all-time high in May 2026, thanks to the country's massive shale oil and gas boom. According to Ministry of Economy data, oil production hit 887,227 barrels per day, a 0.6% increase from April and 19% higher than the same period last year.

Natural gas output also rose to 5.5 billion cubic feet per day, just shy of the record 5.7 billion cubic feet daily reported in July 2025. The Vaca Muerta formation is responsible for this growth, with shale oil making up 70.6% and shale gas 69.8% of total output.

Argentina's national oil company YPF has budgeted $5.8 billion for capital expenditures in 2026, with around 70% allocated to unconventional upstream acreage in the Vaca Muerta. Big Oil and smaller privately owned drillers are also investing heavily in the formation, with Vista Energy committing $1.5 billion this year.

Analysts expect Argentina's oil production to reach one million to 1.5 million barrels daily by 2030, while natural gas output will soar to over six billion cubic feet per day.