(The Energy Circle, June 23, 2025) – Argentina’s energy sector has reached its highest production levels in over a decade, with record-breaking oil and gas output in early 2025, driven by the strategic performance of Vaca Muerta.
Official data from the Argentine Secretariat of Energy confirms a major uptick in hydrocarbon output: oil production totalled 14.22 million m³ between January and April, a 9.6% increase year-on-year and the highest level since at least 2010. In a broader perspective, oil output has risen 47.3% since 2020 and more than 55% since its 2017 low point.
The surge is powered by Vaca Muerta, one of the world’s most promising shale plays. Optimisations in horizontal drilling, hydraulic fracturing, and operational logistics have significantly cut costs while increasing yields. The basin now offsets natural declines in mature conventional fields and is central to Argentina's goal of becoming a net crude exporter.
Strategic investments in pipeline infrastructure and export terminals are also improving resource mobilisation and boosting regional competitiveness.
In tandem, natural gas output reached 16.6 billion m³, up 3.4% compared to the same period in 2024. This marks the strongest first-quarter gas production in 15 years, continuing an upward trajectory since 2021.
Shale gas from Vaca Muerta has become crucial in reducing LNG imports, securing local supply, and enabling Argentina to explore future regional exports through new LNG infrastructure projects.
The data confirms that Argentina is undergoing a structural energy transformation. With a solid foundation in shale, supported by regulatory incentives and international investment, the country is now poised to emerge as a key energy supplier across Latin America and potentially global markets.
Both oil and gas outputs have now surpassed pre-pandemic peaks and previous production records, signalling a new chapter for Argentina’s energy sector—one of resilience, opportunity, and strategic repositioning.
