Crude oil output in Argentina reached a historic milestone in October 2025, climbing to 859,500 b/d, surpassing the previous record of 847,000 b/d set in 1998.
The increase is almost entirely attributable to shale oil development in the Neuquén basin, which delivered more than 653,000 b/d, or roughly 69% of total national supply, according to the National Secretariat of Energy.
The production surge reflects sustained operational efficiencies, improved drilling–completion cycles, and the accelerated reduction of drilled-but-uncompleted wells (DUCs).
“During the first 8 months of the year, an average of 34 shale oil wells were connected per month, compared with 26 during the same period last year,” said Nicolás Arceo, director of consulting firm Economía & Energía.
More than 2,000 hydraulic fracturing stages were executed in October—10% above September levels—signaling that Vaca Muerta is operating at full industrial pace.
Midstream expansion
A structural shift was the expansion of the Oldelval pipeline system to 540,000 b/d from 225,000 b/d, which relieved long-standing transport constraints.
“The new transport capacity made it possible to reverse the bottleneck that had been in place since the third quarter of last year,” Arceo said.
Despite a fall in active drilling rigs to 30-31 from 37-38, the combination of available DUCs and expanded takeaway capacity sustained output growth.
Core shale blocks, diversification
Argentina’s shale structure continues to rely on four flagship developments that have led the expansion since 2018: Loma Campana (YPF, Chevron) with 100,000 b/d, Bandurria Sur (YPF, Shell, Equinor) with 60,000–65,000 b/d, Bajada del Palo Oeste (Vista) with 60,000 b/d, and La Amarga Chica (YPF, Petronas) with 55,000–60,000 b/d.
Together, these fields account for more than 60% of Argentina’s shale oil production. But Argentina’s national record is not only the result of growth in the core blocks.
A shift in 2025 has been the diversification of development across a wider area, marking a new stage in Vaca Muerta’s industrialization.
“This year we began to see greater activity in Angostura 1 and 2, Aguada del Chañar, Rincón de Aranda, Los Toldos, Tacanas, and Pluspetrol’s assets in the northern hub. There is a progressive deconcentration of growth,” Arceo noted.
Official data from the Subsecretariat of Energy and Hydrocarbons of Neuquén Province corroborates this trend. The strongest monthly contributions to October’s increase came from La Amarga Chica, La Angostura Sur I, Bajada de Añelo, Coirón Amargo Sureste, and El Trapial Este, confirming the widening operational base. Neuquén’s provincial output reached 587,190 b/d, a month-on-month increase of 3.57% and a year-on-year rise of 31.23%. From January to October, provincial production grew 23.81% compared with the same period in 2024.
Looking ahead, Arceo underscored the role of global prices and financing availability.
“What will determine the next jump in activity is the evolution of Brent and access to financing. If prices recover in 2027, we will see another acceleration.”
Industry projections indicate that Argentina could reach 1.5 million b/d by 2030, with up to 1 million b/d available for export, provided that midstream expansion continues and investment flows remain stable.
