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Argentina’s Vaca Muerta hits record output, but benefits stay regional
The shale boom in Neuquén has boosted Argentina’s energy industry and GDP growth, while consumption and investment have declined year to date nationwide.
OilPrice reports that Argentina’s Vaca Muerta has posted record oil and near-record natural gas production in recent months, making it the standout shale play outside the United States.
The outlet says the gains appear largely confined to the Neuquén province in western Patagonia, while the rest of the South American country continues to face sluggish growth, high inflation, weak consumer spending, and business and mortgage defaults.
OilPrice adds that Argentina has been working to pay down large external debts and loans from prior years, and that outside the shale patch, total public consumption and investments have fallen year to date, with consumer spending dropping as well.
The report notes President Javier Milei and his government expect the rest of the country to catch up to the Vaca Muerta boom, but progress has been limited so far, leaving job creation and growth uneven across regions.
Latest closeNat gas $2.792 ▲1.2%