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:
Chevron details steps to increase diesel supply
US-based oil major Chevron has outlined its efforts to increase the amount of diesel it is putting on the markets.
TotalEnergies bolsters cooperation for reducing methane emissions
At a meeting of companies participating in the Oil and Gas Decarbonization Charter (OGDC), TotalEnergies showcased its ongoing collaborations to reduce methane emissions.