Neuquén Concentrated 73.7% of Argentine Oil Production in August

Argentina's oil production reached an average of 929,335 barrels per day in August, the highest level recorded to that point. Neuquén once again led growth, with 685,296 barrels per day and a share of 73.7% of national total output.

The province increased its production by 4% compared to July, when it had recorded 658,639 barrels per day. The increase represented 26,657 additional barrels per day, while national volume grew by 16,369 barrels daily, up from 912,966 in July.

Neuquén's performance offset declines in the rest of the jurisdictions. Excluding Neuquén, Argentine production fell from approximately 254,327 barrels per day in July to 244,039 in August, a decrease of roughly 10,288 barrels daily.

Vaca Muerta Gains Weight in the Oil Map

Neuquén's share of national production had been 72.1% in July and rose 1.6 percentage points in August. Thus, nearly three of every four barrels extracted in the country came from the province.

The trend reflects the advance of Vaca Muerta's unconventional developments against the lower growth capacity of mature conventional basins. The expansion is linked to greater operational scale, productivity improvements, and new transportation and export projects.

The volume increase also makes evacuation infrastructure expansion critical. Pipelines, extensions of existing systems, and facilities designed to boost exports will be necessary to support the additional barrels that operators plan to bring online in the coming years.