Argentina’s output of oil and gas from shale rose to record levels in May, the government said on Tuesday, bolstering hopes that its massive Vaca Muerta shale formation can help reverse a costly energy deficit that has strained public coffers.

Unconventional oil production averaged approximately 241,000 barrels per day, a 57% jump from the same time last year. Shale gas production, meanwhile, averaged approximately 76 million cubic meters per day, a year-on-year increase of 39%.

“We have a constantly growing sector, thanks to the strong boost we gave Vaca Muerta,” Energy Secretary Dario Martinez said in a statement.

Vaca Muerta is the world’s second-largest unconventional gas reserve and one of the largest oil reserves.

The government also reported that total oil production reached 584,000 barrels per day in May, a year-on-year increase of 14%, while gas production was approximately 136 million cubic meters per day, 12% more than the same month in 2021.

Last week, Argentina signed a contract to advance the construction of a vital gas pipeline to move gas from Vaca Muerta, allowing the country to forgo costly imports of liquefied natural gas.
Source: Reuters (Reporting by Nicolas Misculin; Writing by Brendan O’Boyle; Editing by Subhranshu Sahu)