Shale Oil Now Makes Up 72% of Argentina's Crude Output, Data Shows

Argentina's hydrocarbon sector reached new highs in July 2026 as national oil production climbed to 902,920 barrels per day, the highest monthly total on record. The rise was led by continued development of the Vaca Muerta shale, where shale oil output hit 648,347 barrels per day — up 1.2% from June and 26% from a year earlier — pushing shale oil to a record 72% share of the country's petroleum production.

Natural gas output also expanded over recent years, averaging 5.6 billion cubic feet per day in July, despite a small 0.5% decline from June and a 1.6% drop versus the prior year. Shale gas production averaged about 3.9 billion cubic feet per day in July, nearly 4% higher year on year and representing 70% of Argentina's natural gas supply; June 2026 remains the only month with slightly higher shale gas output on record.

Conventional oil is trending in the opposite direction. Government data show conventional fields produced 254,574 barrels per day in July 2026, down 2% from June and 13% from a year earlier, continuing a long-term decline that has left conventional output roughly half of its level a decade ago. That dynamic helps explain projections — cited in reporting on the sector — that Argentina could become predominantly an unconventional hydrocarbon producer.

The Vaca Muerta's geological characteristics — including thicker shale, higher organic content and greater reservoir pressure — are highlighted as giving its wells durable productivity and competitive breakeven costs estimated between $36 and $45 per barrel. That combination has attracted major international players and large-scale commitments: Continental Resources moved to acquire a 50% stake in Phoenix Global Resources; Peter Thiel bought a 1% interest in Vista Energy for about $76 million; and Chevron announced a $13.8 billion development plan for its El Trapial acreage under Argentina's Incentive Regime for Large Investments (RIGI). State-controlled YPF has also filed RIGI applications for multibillion-dollar projects, including a $51 billion LNG plan and a previously announced $25 billion investment package tied to an LLL oil project aiming for 240,000 barrels per day by 2032 for export.