Argentina Tapped Fracking to Revive Its Energy Sector — Could Mexico Be Next?

Mexico has begun to explore the possibility of developing its vast unconventional oil and gas resources as domestic production continues to decline, according to analysts at Wood Mackenzie.

The analysts noted that Mexico would follow the lead of Argentina by turning to horizontal drilling and hydraulic fracturing (fracking) to unlock previously untapped hydrocarbon reserves. They pointed to Argentina’s Vaca Muerta shale formation as a standout success, calling it “the largest unconventional oil project outside North America.”

Vaca Muerta has helped transform Argentina from a net importer of oil and natural gas into a net exporter. The country’s Energy Secretariat recently reported a positive energy trade balance of $573 million in April. For the first four months of the year, the surplus reached $2.67 billion.