Mendoza regional economic industry trends

The Mendoza province of Argentina is experiencing divergent economic trends across its primary industries.

In the energy sector, the oil industry has seen a significant contraction between 2022 and 2026. Data shows a loss of 468 active oil wells, a decline in infrastructure of over 19%, which contributed to a 15.5% drop in total crude oil extraction volumes. The Malargüe department, which provides approximately 72% of the province’s crude oil, saw its active well count decrease from 1,511 to 1,236 by April 2026. Other areas, including San Rafael, Luján de Cuyo, Tupungato, San Carlos, and Rivadavia, also reported reductions in both active wells and pumping volumes.

Conversely, the wine industry is pursuing expansion. Through trade missions led by ProMendoza, local wineries are increasing their presence in the Brazilian market, including participation in ProWine São Paulo and professional tastings in Rio de Janeiro. Specific corporate efforts, such as the partnership between Huarpe Riglos Family Wines and importer SetWines, aim to target the premium segment in Brazil. Furthermore, the ‘Wine Ecosystem Mendoza’ project in the Uco Valley is developing residential lots that combine high-end housing with vineyard participation.