Argentina is on the brink of overtaking Colombia as a top-three crude oil producer in South America, driven by a shale-drilling boom in the Vaca Muerta region. Supportive policies from President Javier Milei’s government have led to an increase in drilling activity, with shale oil now accounting for about 60% of the country’s crude output.
Argentina is positioned to surpass Colombia as one of the top three crude oil producers in South America due to significant advancements in shale oil production. The country is witnessing a surge in drilling activities, particularly within the Vaca Muerta shale formation, which has become a focal point of oil production. This increase can be attributed largely to the favorable policies instituted by President Javier Milei’s administration, which has fostered a conducive environment for investment in the energy sector. Currently, shale oil contributes to approximately 60% of Argentina’s total crude production, a trend that is projected to enhance the country’s oil output to levels not seen in over two decades, as noted by the U.S. Energy Information Administration.
The oil and gas sector in South America has been traditionally dominated by countries such as Brazil and Colombia. However, Argentina’s Vaca Muerta shale region offers vast untapped potential, and recent government policies have encouraged exploration and drilling operations. The shale boom is set against a backdrop of increasing global demand for energy and the need for countries to diversify their energy sources.
In summary, Argentina’s commitment to shale oil production, particularly in the Vaca Muerta region, along with supportive governmental policies, places the nation on a trajectory to become one of the leading oil producers in South America, potentially surpassing Colombia. The upcoming year is expected to see increased drilling activity and investment, further solidifying Argentina’s position in the energy landscape.
Original Source: news.bloomberglaw.com
