Argentina's shale boom: Vaca Muerta fuels economic revival

This record-paced drilling is accompanied by the construction of pipelines through which the fuel will flow to the country's capital, Buenos Aires, and even further when LNG production plants begin to operate, Reuters emphasizes.

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

Vaca Muerta, Spanish for "Dead Cow," is a geological formation with an area the size of 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 exploit this potential.

In the town of Anelo, which several decades ago had only a few houses, there are now hotels, restaurants, and even a casino to accommodate the influx of extraction sector workers, Reuters reports.

"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 up with the increasing population," emphasized 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. More and more people believe that thanks to Vaca Muerta's potential, the country could become a significant player in the global fuel market.

To achieve this, however, multibillion-dollar investments in infrastructure, including gas export terminals, equipment, and workforce, are necessary, experts emphasize.