Vaca Muerta Shale Boom Fuels Argentina's Economic Growth
Argentina's economy is receiving a boost from the Vaca Muerta shale boom, which has led to major pipeline and LNG export projects. According to projections by YPF, Argentina's state-run energy company, Vaca Muerta will generate $50 billion in export dollars by 2031, rivaling the country's agriculture sector.
The formation is already having a significant impact on the economy, with Argentina logging its largest energy trade surplus in nearly two decades in 2024 and breaking its record again last year by exporting $11.1 billion worth of energy. The boom has also created new job opportunities for workers like Ramiro Ramirez, who earns 10 times his previous salary as a cook operating a gas compressor at Vaca Muerta.
Economists say that President Javier Milei's focus on capital-intensive sectors such as Vaca Muerta is smart, but they caution that the benefits may not be evenly distributed. Some critics argue that the RIGI program, which offers tax breaks and regulatory stability to energy companies, will only benefit a select few at the expense of the rest of the economy.