Argentina’s Shale Boom Propels It Past Colombia in Oil Output

Core Insights - Argentina is experiencing a significant unconventional hydrocarbon boom, primarily driven by the Vaca Muerta shale formation, which is among the largest in the world and is expected to lead to substantial increases in oil and gas production [5][6][11] Group 1: Vaca Muerta Formation - The Vaca Muerta formation spans 8.6 million acres and is estimated to contain 16 billion barrels of light tight oil and 308 trillion cubic feet of tight gas, making it the world's fourth-largest unconventional oil and second-largest unconventional gas reserve [1] - The formation's characteristics, such as superior shale thickness and higher well productivity, make it more favorable compared to major U.S. shale plays [1] Group 2: Production Trends - Natural gas production in Argentina has declined, with output dropping 7% year over year to 4.2 billion cubic feet per day, the lowest since December 2023 [3] - In November 2025, crude oil production was 844,386 barrels per day, a 12.5% increase from the previous year, despite a slight decrease from the previous month [4] - Shale oil output reached a record of 578,461 barrels per day in November 2025, marking a 30.68% year-over-year increase and accounting for 68.51% of Argentina's total production [4] Group 3: Role of YPF - YPF, Argentina's national oil company, is the largest producer in the Vaca Muerta and is responsible for 69% of the country's oil production and 65% of natural gas output [6][8] - YPF plans to invest $36 billion between 2025 and 2030 to develop its Vaca Muerta acreage, with annual capital expenditure peaking at $6.8 billion in 2029 [10] - The company reported low lifting costs averaging $8.80 per barrel, with only $4.60 per barrel for Vaca Muerta, indicating strong profitability even in a challenging market [11] Group 4: Future Projections - By the end of the decade, Argentina's crude oil output is expected to reach at least 1 million barrels per day, with some forecasts suggesting up to 1.5 million barrels per day by 2030 [6][11] - Natural gas output is projected to exceed 6 billion cubic feet per day by 2030, driven by the growth in shale gas production from Vaca Muerta [11]