Argentina's Vaca Muerta shale output surges as Neuquén sand use expands

Governor Rolando Figueroa confirmed that Tecpetrol is testing sand from Neuquén Province in the Vaca Muerta formation, joining YPF and Vista which have already used the material locally. The move aims to cut transport costs by sourcing the sand within the province instead of importing it from Entre Ríos and Río Negro. At the same time, Argentina reported a record oil output for May 2026, with Vaca Muerta delivering 887,227 barrels per day, a 19% increase over the previous year, and natural‑gas production reaching 5.4 billion cubic feet per day. The surge, driven by billions of dollars of investment from YPF and private producers, positions Argentina among South America’s top oil producers and highlights the growing importance of its shale sector.

The province is also studying new transport routes for the sand and has ruled out using the Limay and Negro rivers for material shipment, emphasizing environmental concerns.