Core Insights - Argentina's federal government has focused on the Vaca Muerta shale formation for over a decade, which has become a key driver for the country's hydrocarbon production [1] - The nationalization of YPF in 2011 was a pivotal moment that allowed the company to lead the development of Vaca Muerta, despite initial backlash from financial markets [1] Production Growth - Shale oil and gas production in Argentina has reached record highs, with August 2025 data showing crude oil production at 816,144 barrels per day, 65% of which was shale oil [2] - Natural gas production for the same month was 5.5 billion cubic feet, with 67% attributed to shale gas [2] - Year-over-year, oil output increased by nearly 15%, while natural gas production saw a modest 3% rise [2] Shale Oil and Gas Performance - Shale oil production surged by 30% year-over-year to 530,057 barrels per day, marking a new record and comprising 65% of all crude oil lifted in Argentina [3] - Shale gas production, however, declined by 1.6% month-over-month to 3.7 billion cubic feet per day, although it was still 3% higher year-over-year [3] Comparison with U.S. Shale Plays - Vaca Muerta's characteristics are more similar to the Permian Basin than the Eagle Ford Shale, with well productivity believed to surpass that of major U.S. shale plays [4] - A typical well in Vaca Muerta yields around 30 barrels per foot drilled, which is double the production of the Permian and other U.S. shales [4] - The average breakeven price in Vaca Muerta is estimated at $36 per barrel, comparable to U.S. shale basins despite higher drilling costs [4]