Argentine governors seek Vaca Muerta investments at Texas energy summit

Following the partial lifting of Argentina’s currency controls, four provincial governors are travelling to the United States in the search for fresh investments in oil and gas development at the massive Vaca Muerta shale formation. 

Governors Alberto Weretilneck (Río Negro), Rolando Figueroa (Neuquén), Alfredo Cornejo (Mendoza) and Martín Llaryora (Córdoba) will attend the Offshore Technology Conference (OTC), the world's leading event in offshore energy, to be held in Houston, Texas, in the United States, next week. 

The leaders will participate in a top-tier summit attended by the global energy elite, who view Argentina as an opportunity but will demand more competitive costs if they are to commit their capital.

The OTC summit comes at a pivotal moment for Vaca Muerta, which is home to vast shale oil and gas reserves. The conference begins on Sunday, 4 May, and will host more than 100 local companies and 200 from around the globe, including major players from the Permian Shale basin, the massive Texan oil field that is often used as a benchmark to measure Vaca Muerta by. 

 The Argentina–Texas Chamber of Commerce (ATCC) will lead an “Energy Trade Mission” aimed at deepening bilateral ties, fostering investment, promoting the adoption of cutting-edge technologies, and strengthening public-private cooperation.

Cost competitiveness – a major concern for investors

According to sources consulted by Perfil, several global companies are interested in investing in Argentina, encouraged by President Javier Milei’s government Régimen de Grandes Inversiones (RIGI) investment incentive scheme and recent FX rule changes that allow dividend repatriation for firms from their 2025 earnings. 

For many, the country's appeal is undeniable, though Vaca Muerta still faces several challenges if it is to become a challenger to the agricultural sector’s dominance as the main source of foreign currency inflows.

"Vaca Muerta is becoming more competitive, but it still has several costs to improve. From gross income taxes and industry regulations to spending on materials and services for drilling," explained ATCC Vice-President Ariel Bosio in an interview.

According to the oil and gas expert, "one of the most important issues is the production break-even point and whether it is higher than costs in other countries." 

Bosio added: "These are 25-year investments where you need to protect yourself from a volatile commodity like oil.”

Earlier this month, acknowledging a decline in Brent crude prices due to the tariff war triggered by US President Donald Trump's “Liberation Day” measures, Horacio Marín, CEO of the YPF state energy firm, argued that Argentina is competitive, with a price of US$45 per barrel. 

But Saudi Arabia, considered a benchmark for oil production, has a cost production that is four to five times lower than Argentina's.

Vaca Muerta's main challenges

"Argentina has a unique opportunity. To integrate itself into the global value chain, it lacks three things that are within reach of this summit," summarised Bosio. 

First, export infrastructure. The first milestone was the Perito Moreno Gas Pipeline (formerly known as the Néstor Kirchner gas pipeline), which allowed production to grow in transport capacity. The same is expected with the arrival of the Vaca Muerta Sur oil pipeline and the expansion of existing structures to increase transport to Brazil, Chile, and other countries.

Bosio also pointed to social infrastructure. Operations in the region need to accommodate workforce migrations not only to large cities near the field but also to nearby towns. "Different governments will necessarily have to address this to create the environment for industry development," Bosio warned.

Finally, the expert noted a necessary “improvement of technology and available resources.”

Among the activities planned for visiting Argentine officials and business representatives arevisits to factories in Houston and the Permian, the heart of the industry in the United States. Texas is home to 44 of the sector’s 113 companies that are listed in the US, concentrating a third of all employment in oil and gas.

Representatives from major companies already operating in Neuquén – such as YPF and Pan American Energy (PAE), as well as service companies or local manufacturers directly related to the Patagonian oil and gas hub – will be present at the OTC summit. 

"Vaca Muerta could reach an annual investment of US$20 billion in some years," indicated Bosio – double the current average of US$10 billion.