Argentina Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in argentina, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Energy - Oil & Gas
Last published date:

The Government of Argentina (GOA) sees the oil and gas sector as a major driver of exports and as a generator of foreign currency. The government is keen to attract foreign direct investment to spur economic growth.

Argentina possesses the world’s fourth-largest shale oil and second-largest shale gas reserves. The Vaca Muerta shale formation is located in the provinces of Neuquén, Mendoza, and Río Negro, and only a fraction has been developed for oil and gas production. Vaca Muerta’s shale quality, production incentives, tax exemptions, and negotiated labor concessions have contributed to lowering operational costs and increased efficiency. Many local firms are present in the market along with international exploration and production companies, including Aconcagua, Chevron, Pampa, Petronas, Pluspetrol, Raizen (Shell), Total, and Vista. Argentina’s leading energy company, YPF, holds the largest upstream sector market share. Industry reports a continued need for small- and medium-sized service companies with shale expertise to enter the market to further improve efficiency and lower costs.    

The province of Neuquén, home to the largest portion of the Vaca Muerta formation, continues to be a key driver of industry growth. As of September 2024, Argentina’s oil and gas production approached record highs, primarily due to increased output from the Vaca Muerta shale formation. In September 2024, Argentina’s crude oil production averaged 738,000 barrels per day (b/d), marking a 15 percent increase compared to September 2023 and representing the highest monthly production since 2003. The Vaca Muerta formation contributed significantly to this surge, accounting for 58 percent of the country’s total oil output in September 2024.

During the first nine months of 2024, Argentina’s natural gas production averaged 5 billion cubic feet per day (Bcf/d), reflecting a 5.2 percent increase over the same period in 2023. In August 2024, natural gas production peaked at 5.4 Bcf/d, the highest monthly output in 21 years.  The Vaca Muerta formation was a major contributor, accounting for over 70 percent of the country’s natural gas production, reaching 74 percent (3.8 Bcf/d) in September 2024.  Crude oil exports have risen significantly, increasing by an average of 33 percent per year from 30,000 b/d in 2017 to 128,000 b/d in 2023.  Shale oil constituted approximately 70 percent of these exports in 2023, with primary destinations including the United States, Brazil, and Chile.  Natural gas exports to neighboring countries such as Chile and Uruguay have also increased, facilitated by new infrastructure projects like the Perito Moreno pipeline which started operations in 2023.  These developments underscore Argentina’s growing prominence in the global energy market, driven by substantial investments in shale resource extraction and infrastructure expansion.

Resources

For additional information, including market analysis, trade events, contacts, and the products and services that the U.S. Commercial Service can provide to help you succeed in the Argentine market, please contact Marcelo Amden, Industry Specialist

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility