Chevron Seeks Further Deregulation for Argentine Shale Boom

Chevron sees 'more to be done' by Argentine President Javier Milei's administration to fully unlock the potential of Argentina's shale boom.

In an interview, Chevron's Vice-President for Oil Mark Nelson stated that while progress has been made with taxes and labor reform, as well as removing capital constraints, more needs to be done to make Vaca Muerta compete on a dollar per dollar basis with the Permian Basin in the United States.

Nelson emphasized the need for Argentina's policy steps to be durable and referenced the quality of the shale rock as an advantage for the country. He added that Chevron plans to triple its production in the basin over the next decade, from the current 74,000 barrels a day.

Chevron currently produces almost 600,000 barrels a day of crude oil from the Vaca Muerta basin and expects to apply for RIGI benefits for two of its less developed blocks in the Patagonia shale formation. The RIGI program offers tax breaks and other business-friendly incentives that would help bridge the 35 percent cost gap with the Permian Basin.