Vaca Muerta Boom Fails to Lift Argentina's Economy

Argentina's Vaca Muerta shale patch is booming, producing record amounts of oil and near-record levels of natural gas. In May, crude oil output reached an all-time high of 887,227 barrels per day, a 19% increase from the same period last year.

Natural gas production also rose to 5.5 billion cubic feet per day in May, just shy of the record 5.7 billion cubic feet daily reported for July 2025.

However, despite Vaca Muerta's success, the rest of Argentina continues to struggle with sluggish growth, high inflation, and weak consumer spending.

The government hopes that the shale boom will trickle down into the overall economy, but experts say this may be a challenge. 'The question is whether the new export sectors can generate enough spillovers for the rest of the economy,' said economists Fernando Garcia and Lucila Venturi in an article for Economics Observatory.

The average monthly salary in the oil and gas sector in Neuquén, where Vaca Muerta is located, is around $5,600, three times higher than the average salary in Buenos Aires.