In conversation with Atul Arya, Chief Energy Strategist at S&P Global, Ricardo Markous analyzes the opportunities and challenges facing the industry to transform this resource into a driver for international development and investment.

Vaca Muerta is redefining Argentina's role in the global energy market. With vast reserves of unconventional oil and gas, growth accelerating in production, and a clear strategy to expand LNG, the country is positioning itself as a key player on the global stage.

A world-class resource

Located in the Neuquén basin, the Vaca Muerta formation is one of the largest shale reserves in the world, with an estimated 300 trillion cubic feet of technically recoverable gas and 16 billion barrels of oil. "Vaca Muerta is a game changer," opens Markous in the interview, explaining that, "Argentina is traditionally an agricultural powerhouse, but this could be its next big economic boom."

Currently, the country produces 600,000 barrels of crude oil per day, of which 400,000 come from Vaca Muerta. Projections are even more ambitious: reaching 1.5 million barrels per day by 2030, with 1.2 million coming from this formation. However, warns Markous, “the challenges are not about the rock itself, as its quality is outstanding, but about the infrastructure we need to support this expansion.”

LNG: the big promise

Argentina has managed to reduce its dependence on imported LNG, going from 80 annual shipments a decade ago to just 25 today. Now, the country is poised to become a leading exporter. "LNG exports are essential to monetize our vast gas reserves," Markous shares. "We expect the first of these projects to be operational by the end of the decade, perhaps even before. With European and Asian markets looking for reliable suppliers, Argentina could become a strategic player in global energy security.”

Investment, infrastructure and growth

Meanwhile, the full development of Vaca Muerta could mobilize billions of dollars in investment and generate a significant increase in employment. "In Fortín de Piedra, we reached an output of 400 million cubic feet per day in just 18 months," he says, highlighting Tecpetrol's execution capacity within the Techint Group’s ecosystem, thanks to resources and know-how contributed by Tenaris and Techint Engineering & Construction.

To sustain this growth, Argentina must accelerate the development of key infrastructure, such as gas pipelines, LNG terminals and storage. "We need more drilling rigs, fracturing units and export terminals," Markous emphasizes. "The good news is that investment is flowing and large companies are keen to be part of this process."

Technology and innovation: the key to efficiency

Tecpetrol has reduced drilling times from 40 to 16 days and doubled fracturing rates per day, thanks to technology and innovation. Artificial intelligence (AI) and machine learning are optimizing operations from the Real Time Operations Center in Buenos Aires, which allows the team to monitor and manage projects in several countries simultaneously.

Beyond hydrocarbons, Tecpetrol is contributing to the energy transition through TechEnergy Ventures, its venture capital arm, with investments in startups focused on lithium and batteries, carbon management, hydrogen and electrification. “Since 2020, we’ve invested $40 million in 17 startups,” says Markous. The company is also developing its own startup to explore methane pyrolysis for producing turquoise hydrogen—a key step in decarbonizing the steel industry.

Turning to renewable energy sources, Tecpetrol has been closely involved in developing wind farms with a total output of 300 MW to supply Tenaris and Ternium, reducing the carbon footprint of their plants.

Latin America: a promising player on the energy map

With Argentina, Brazil, Suriname and Guyana at the forefront, Latin America is moving into place as a key player on the world’s energy stage. "We must make the most of this moment," stresses Markous. "The region's resources and new geopolitical configuration are opening up unprecedented opportunities."

With CERAWeek 2025 on the horizon, the sector's attention will be focused on Argentina and its ability to capitalize on the potential of Vaca Muerta. "The world is watching," Markous concludes. "And we are ready."

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