Vaca Muerta Now Has Its Water Strategy: From Waste to Input
Vaca Muerta still generates minimal produced water, but volumes will scale with activity expansion. For Guillermo Aversano, president of the PWS Argentina Executive Committee, the strategy hinges on a paradigm shift: stop viewing this fluid as waste and start using it as an input. The advantage is that, like flowback, it's already at surface. This topic is the subject of a conference being held in Neuquén starting this Thursday and running through Friday the 16th.
Why Now
The formation is advancing at a pace that makes this matter urgent. In 2025, 23,784 fracturing stages were completed, 34% more than in 2024, according to data compiled by Luciano Fucello of NCS Multistage. Each stage requires approximately 1,500 m³ of water, so a 50-stage well demands around 75,000 m³. Pressure on rivers and aquifers will grow with each new fracturing set, and currently there are 15 in operation in Vaca Muerta compared to roughly 120 in the Permian.
First Pillar: Reuse in Fracturing
The primary objective of the strategy is reuse in fracturing. Every cubic meter of produced water returned to the wellbore is one cubic meter not withdrawn from fresh sources. This is already practiced in the Permian, where 50-60% is reused with a target of reaching 80% by 2030, according to a Texas Living Waters report. There, water management has become nearly a separate industry, with plants and job creation, while exploring applications in agriculture and data center cooling.
"There's nothing to invent here, just adapt to Vaca Muerta's conditions," Aversano stated.
The strong water demand from Vaca Muerta operations is accelerating the search for resource efficiency processes.
Second Pillar: Blending and Treatment
The immediate tool is blending, which mixes 30% of treated produced water with 70% fresh water and significantly reduces river withdrawals. Implementation requires investment in treatment: the water has been in contact with the geological formation, so it carries organic components and high salinity.
Aversano stated that processes exist to achieve water quality standards suitable for companies and estimated a benefit close to 50% in costs. He clarified that these are currently projections, since there are no active treatment plants in the country yet.
Third Pillar: Royalties as Incentive
The province added an economic signal. As of July 1st, Decree 792/2026 established a royalty per cubic meter equivalent to the price of 2.5 liters of YPF grade 3 diesel, rising to 3 liters in January 2027 and updating every two months. According to the provincial government, the previous scheme had lost effectiveness in promoting rational resource use.
With diesel at approximately 2,680 pesos per liter in Neuquén in late September and the official exchange rate at 1,540, the royalty runs around 4.35 dollars per cubic meter. By that calculation, a 50-stage well could add over 300,000 dollars in costs. The more expensive fresh water becomes, the more attractive it is to recover water already at surface.
Building a Local Value Chain
The strategy also aims to generate activity in the region: plants, technology, and opportunities for local suppliers.