Argentina’s Vaca Muerta shale has significant untapped potential, but regulatory issues, high inflation, and economic instability have limited growth. Key players like Exxon Mobil have exited, but firms like Shell and Chevron remain invested, hinting at future possibilities if regulations improve.

Argentina’s Vaca Muerta shale basin presents significant potential for oil exploration, especially as U.S. shale wells decline. Horizontal drilling gained momentum around ten years ago, yet regulatory hurdles like capital controls, taxation, and oil price interventions have hindered development. Additionally, persistent inflation and economic instability have deterred potential investors. Notably, Exxon Mobil divested its Argentina operations last year, while companies like Shell and Chevron continue their involvement in the region.

To capitalize on its shale opportunities, Argentina must address its regulatory framework and stabilize its economy. With the right changes, Vaca Muerta could undergo a transformation, attracting investment and spurring a new shale boom in the country.

Original Source: www.wsj.com