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Argentina Records Largest Energy Trade Surplus in 18 Years

by Krystal

Argentina’s energy trade surplus reached its highest level in 18 years in 2024, driven by a 22.3% increase in exports and a 49.4% drop in imports, according to government data.

This significant surplus marks a key achievement for President Javier Milei, who took office with plans for an energy overhaul to strengthen Argentina’s economy, boost exports, and improve foreign exchange reserves.

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The energy trade surplus hit $5.668 billion last year, as energy exports rose to $9.677 billion, making up 12.1% of Argentina’s total exports. Meanwhile, energy imports fell sharply to $4 billion, down 49.4% from the previous year.

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Chile was the largest importer of Argentinian energy, purchasing $2.844 billion worth of energy products, a 74.1% increase from 2023.

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Vaca Muerta, Argentina’s shale oil province, has long been seen as a key resource that could transform the country into a net energy exporter. After years of slow progress, President Milei has enacted market reforms to encourage foreign investment in the energy sector. These efforts are starting to pay off, as oil production in Vaca Muerta has surged from under 90,000 barrels per day (bpd) five years ago to nearly 400,000 bpd by the third quarter of 2024. The region is expected to produce 1 million bpd by the end of the decade.

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With this growth, Argentina is now focusing on exporting its vast hydrocarbon resources, marking a new chapter in the country’s energy sector.

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