Chevron applies Permian playbook to expand output in Argentina's Vaca Muerta
Chevron plans to add drilling rigs at El Trapial and aims to triple Argentine output by 2035, Reuters reports.
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what happened
Chevron is trying to recreate in Argentina's Vaca Muerta formation the shale boom that reshaped the US oil industry two decades ago in the Permian Basin. According to Reuters, the company is bringing US workers, equipment and expertise to a remote field where output has long fallen short of its potential.
At the El Trapial block, which currently produces about 40,000 barrels of oil equivalent per day, Chevron plans to go from one to three drilling rigs by early 2029. The company is also seeking government approval for a $13.8 billion, 30-year investment plan. The bet is that President Javier Milei's reforms will speed up the oil boom, and Chevron aims to triple its Argentine output by 2035.
Costs remain high, however. Bringing a well online costs about 30% more than in the Permian, and sand for fracking is trucked nearly 2,000 kilometers.
why it matters
For oil markets the signal matters more than the immediate volume: Wood Mackenzie estimates Argentina could become South America's third-largest liquids producer by 2028. This is a long-term supply factor and does not change the near-term balance.
market impact
Oil: longer-term supply growth from Argentina, limited near-term effect on Brent
tags
instruments
sources
- Chevron uses Permian playbook to breathe life into Argentina’s ‘Dead Cow’ oil region — Reuters, 23 October 2026 at 10:00 UTC
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