President Javier Milei lauded Argentina’s unprecedented export achievements and the increase in oil and gas output on Monday, attributing these developments to his administration’s deregulation efforts and investment incentives that have revitalised the energy sector. During the inauguration of the Argentina Oil & Gas Expo 2026 in Neuquén, Milei announced that monthly exports had surpassed US$10 billion, marking a record high, and credited the growth to reforms implemented by his administration. “For a decade, Vaca Muerta operated at half capacity, with artificially suppressed prices, currency controls and fear of investing. When we changed the rules, in less than three years we started exporting like never before,” he said. The president contended that Argentina’s natural resources, in isolation, could not ensure prosperity without the presence of institutions that foster investment and safeguard private property. “What changed? Did oil magically appear? No, the formation was always there. What changed were the rules,” he said. Milei emphasised the expansion of the Vaca Muerta shale formation, noting that average production increased from approximately 310,000 barrels per day in 2023 to over 670,000 in August 2026, based on the data he provided.
National oil production reached 932,000 barrels a day in August, an increase from approximately 635,000 in 2023. The figure exceeded the prior historical record established in 1998. “For the first time in history, we are just a few steps away from one million barrels a day,” Milei said. Oil exports have seen a significant rise, escalating from an average of 128,000 barrels per day in 2023 to a projected volume of 256,000 barrels per day by 2026. In July, exports neared 330,000 barrels per day. Milei partly attributed the expansion to the elimination of the so-called barril criollo, a domestic oil price support mechanism that had been in place for over two decades, and was taken down by the government’s initial deregulation measures. He also highlighted the nation’s energy trade balance, noting that it had transitioned from annual deficits of as much as US$5 billion to a surplus surpassing US$10 billion. Gas exports and significant infrastructure initiatives Milei characterised natural gas as a significant opportunity, contending that Argentina was addressing the paradox of importing liquefied natural gas while holding the world’s second-largest shale gas reserves. “For almost 20 years, Argentines bought gas from Bolivia and every winter rushed to buy liquefied natural gas shipments, all while sitting on the planet’s second-largest shale gas reserves. It was like dying of thirst next to a lake,” he said.
The government anticipates that Argentina will commence exporting LNG to Europe next year under a contract valued at over US$7 billion, as stated in the official account of the speech. Milei also highlighted the planned Vaca Muerta Oil Sur pipeline, an approximately US$3 billion project expected to enable annual exports worth around US$15 billion. He also mentioned the country’s largest private investment: Argentina LNG, a US$51 billion investment project led by state-owned oil company YPF in partnership with Italy’s Eni and the UAE’s XRG. Milei defends RIGI and responds to critics. The president defended the Large Investment Incentive Regime enabled by his administration, asserting that it has attracted over US$210 billion in announced investment projects, with 45% associated with oil and gas. He stated that the program represents Argentina’s most significant industrial and development policy in history, dismissing economists’ apprehensions regarding its possible fiscal implications. “How can an investment that would never have happened without RIGI have a fiscal cost?” he asked, amid a sputter of insults.
Milei contended that in the absence of the regime, numerous projects would fail to materialise, consequently leading to a lack of both investment and tax revenue. He stated that the incentives contributed to restoring Argentina’s credibility by constraining the state’s capacity to alter the regulations surrounding long-term investments. “The capital that comes in thanks to RIGI brings projects, jobs and exports that simply did not exist before, and with them, tax revenue that did not exist either,” he said. He also targeted critics of his economic program, rejecting claims that the exchange rate was overvalued by highlighting export growth. “What kind of overvalued exchange rate is this, in a country where exports are growing five times faster than GDP?” he said. Milei contended that enhancing competitiveness should stem from lower taxes, fewer regulations, improved infrastructure, and decreased domestic costs, rather than relying on currency devaluation. Looking ahead, he predicted that Argentina’s economy would eventually converge toward the investment-friendly framework established by RIGI, presenting the energy boom as evidence that altering the rules could unlock the country’s economic potential.
