Economic crisis threatens to stall Vaca Muerta

Economic turmoil and infrastructural congestion are raising doubts over Argentina's shale growth

Argentina's hope of fast-tracking production from its vast Vaca Muerta shale play, the world's second largest by output, could be delayed as the country adapts to recession. Last year, Argentina was forced to seek a $57bn bailout package from the IMF — the largest-ever sum issued by the fund — after the peso lost over 60pc of its value and inflation surged. In response, the government decided to further scale-back its production subsidy programme, a move that calls its ambitious growth targets into question. Argentina's hydrocarbon sector has largely depended on subsidies. Between 2017-18, production subsidies increased by 30pc to $2.7bn. At the same time, Argentina set itself bold productio