Vaca Muerta Needs to Reorganize Its Value Chain to Reach 1,000 Wells Per Year

Unconventional development in Vaca Muerta faces the challenge of doubling the pace of activity to reach 1,000 drilled and completed wells per year. The projected expansion no longer depends solely on adding equipment in the fields, but on expanding and coordinating the supply chain.

Activity in the Neuquén Basin increased from 82 connected wells in 2020 to 467 in 2025, of which 395 were oil and 72 were gas. In the first five months of 2026, another 122 wells were recorded. During that period, oil production multiplied by four, while gas faced transportation constraints, especially during months of higher winter demand.

The initial decline of shale wells, estimated at around 50% during the first year, requires connecting approximately 500 wells annually just to sustain oil production between 850,000 and 900,000 barrels per day. To double the scale and accelerate exports, the target should be raised to 1,000 wells per year.

The supply required for 500 wells includes more than 175,000 tons of casing steel, 30 million cubic meters of water, 7 million tons of proppant sand, 200 million liters of diesel, and 600,000 cubic meters of drilling cuttings. The wear on approximately 15,000 heavy vehicle tires is also calculated.

Sand concentrates one of the main logistical challenges. Each well requires between 10,000 and 12,000 tons and may need around 1,000 truck trips between loaded hauls and returns. Additionally, the reservoir requires sands capable of withstanding pressures up to 9,000 PSI, so less than 10% of current consumption can be covered by local production. Transportation costs represent the largest portion of the sand value delivered to the wellhead.

Given this scenario, Neuquén is promoting a roadmap structured in six rings of the value chain. The scheme contemplates the province as regulatory authority, operating companies and investors, integrators and service providers, and specialized services, with the objective of improving coordination, expanding infrastructure, and reducing nonproductive time. Among the alternatives analyzed are the use of bitrucks, new transportation routes, and the validation of closer sand sources.

With information from Mejor Energía.