Argentina's shale boom: Vaca Muerta fuels economic revival

Reuters highlights that the record-paced drilling is accompanied by the construction of pipelines to transport fuel to the country's capital, Buenos Aires, and even further when LNG production plants begin to operate.

Libertarian President Javier Milei's government is promoting the export of oil and gas, aiming to earn foreign currency and lift the country out of a severe financial crisis. It has also announced a series of incentives to attract significant investments, including in the energy sector.

Vaca Muerta, Spanish for "Dead Cow," is a geological formation with an area size similar to Belgium. It contains the world's second-largest shale gas reserves and the fourth-largest shale oil reserves. However, there is still a long way to go to fully realise this potential.

In the town of Anelo, which several decades ago consisted of just a few houses, there are now hotels, restaurants, and even a casino for the influx of workers in the extraction sector, Reuters notes.

- The boom is already here. There was nothing here before, absolutely nothing – said 70-year-old town resident Monica Paredes.

- The growth is so rapid that the infrastructure can't keep pace with the increasing population – emphasised former Argentine Secretary of Hydrocarbon Resources Jose Luis Sureda.

Authorities estimate that Vaca Muerta could supply 2 million barrels of oil per day, nearly five times Argentina's current shale oil production. Increasingly, people believe that thanks to Vaca Muerta's potential, the country could become a significant player in the global fuel market.

However, experts stress that multibillion-pound investments in infrastructure, including gas export terminals, equipment, and workforce, are necessary to achieve this.