Argentine state energy firm YPF's first-quarter 2025 results revealed significant expansion in Vaca Muerta operations, with shale oil production averaging 147,000 barrels per day between January and March. This represents a 31% increase compared to the same period last year and a 7% rise from the fourth quarter of 2024, according to the company's May 7 press release, seen by IntelliNews.

"Today, it [shale oil] represents 55% of YPF's total oil production," the company stated, highlighting the growing importance of unconventional resources in its production portfolio.

Export performance showed equally impressive growth, with oil shipments increasing 34% compared to the first quarter of last year. Exports averaged 36,000 barrels per day, driven primarily by the expansion in shale oil production, as per the company’s announcement.

The robust quarterly performance coincides with YPF's advancement of several strategic projects in the Vaca Muerta formation, including the Vaca Muerta Sur project alongside the likes of Chevron and Shell, centred on the development of a 437km pipeline. In April, the Vaca Muerta achieved record fracturing, with YPF leading the charge by completing 931 fracturing stages, more than 40% of the total activity for the month.

This record-setting activity underscores Vaca Muerta's growing importance in Argentina's energy landscape as both domestic and international companies scale up operations.

Beyond the energy sector itself, Vaca Muerta operations could aid Argentina in its continued economic recovery — a potential outcome that has been outlined by Moody’s in its inflation forecast for the South American country.

Vaca Muerta is estimated to hold 16.2bn barrels of recoverable shale oil, and 8.7 trillion cubic metres of shale gas. The basin is a new source of oil and natural gas – soon to be exported as LNG – in a country now under a pro-business government led by President Javier Milei.