04/08/2026 by Daniel Tait
Data from the Ministry of Economy in Argentina has revealed that production hit 887,227 barrels per day (bpd) in May.
This is a 19% year-on-year rise and 0.6% above the previous month.
The production of natural gas also hit the impressive level of 5.5 billion cubic feet per day.
The country is experiencing a shale boom similar to parts of the US. Driving this is the Vaca Muerta shale formation, which covers some 8.6 million acres. While the formation is still in the relatively early days of development, shale oil and gas production already accounted for about 70% of Argentina’s total production in May.
The formation presents an excellent opportunity for oil companies with experience of recovering resources from shale formations. Chevron, which makes the Texaco grease and lubricant range, put forward a $13.8 billion investment plan to develop the El Trapial block. Chevron said about this:
“Chevron commends the efforts made by Argentina’s government for making significant progress towards developing Argentina’s energy resources. Frameworks like RIGI, which contribute to regulatory predictability and encourage long-term investment decisions, are key steps for Argentina’s energy industry.”
Pilot work on El Trapial has so far had promising results, with Chevron using methods implemented at its Permian operations. This involves increasing crude recovery through 3,000-metre ultra-long horizontal wells.
Vaca Muerta is superior to many US Permian plays in terms of characteristics. The formation also has a low carbon intensity, a breakeven cost per barrel estimated at between $36 and $45, and a longer expected lifespan compared to mature plays in the US.
You may also interested in:
BP agrees to sell Austrian businesses
UK-based BP has come to an agreement with volenergy AG to sell its Austrian mobility, electric vehicle (EV) charging and convenience businesses.
TotalEnergies gives go ahead for UAE gas cap investment
France-based Total Energies has announced a final investment decision (FID) for its 20% interest in developing the Umm Shaif gas cap.