The Impact of Fracking on Argentina: A Local Perspective from Añelo

Fri Dec 05 2025 14:55:59 GMT+0200 (Eastern European Standard Time)

As fracking transforms the small town of Añelo into a booming hub of economic activity, questions arise about whether this growth can translate into national benefits for Argentina.

The town of Añelo, located in the heart of Vaca Muerta, has experienced a remarkable economic transformation due to fracking activities. From a rural village to a bustling center with a growing population and thriving businesses, Añelo's story raises questions about the broader implications of fracking for Argentina's economy, especially in light of ongoing challenges such as inflation and debt.

Mechanic Fabio Javier Jiménez found himself in the right place at the right time. When his father moved their family-owned tyre repair shop to the rural Argentine town of Añelo, it was a small, sleepy place, some 1,000km (600 miles) southwest of Buenos Aires.

There was no mains water or gas, and the electricity supply was constantly being cut off. Then in 2014, fracking for oil and gas started in the surrounding region, and the conurbation boomed.

We set up the tyre repair shop in the middle of the sand dunes, far from the town centre, says Mr Jiménez. Then the town grew and passed us by.

Fuelled by its new-found energy wealth, Añelo's population soared from 10,788 in 2010 to 17,893 in 2022, an increase of more than 60%. In addition, Añelo sees some 15,000 workers enter the town each week day.

This has made the roads very busy, including lots of oil tankers going through. Last year, 24,956 vehicles entered the town every day, of which 6,400 were lorries, official figures showed. Mr Jiménez's workshop on the main provincial road is there to help any that need new tyres.

Añelo is located in the heart of Vaca Muerta, a 30,000 sq km (12,000 sq mi) oil and gas-rich geological formation. It was first discovered as far back as 1931, but it wasn't until fracking became legal in Argentina in 2014 that the deposits could be commercially accessed. Fracking is a method of mining that first became widespread in the US in the early 2000s, whereby a high-pressure mixture of water, sand and chemicals is injected into the ground. This cracks or fractures the rock, allowing the gas or oil trapped inside to be brought to the surface.

The first fracking operation in Vaca Muerta was a joint operation between Argentina's majority state-owned oil firm Yacimientos Petrolíferos Fiscales (YPF) and US giant Chevron. By February of this year, there were 3,358 wells in active production in Vaca Muerta, according to the Argentine Institute of Oil and Gas.

This accounts for more than half of Argentina's oil and gas production, says Nicolás Gadano, chief economist at the Empiria consultancy and a former YPF official.

The oil and gas from Vaca Muerta has given Argentina energy self-sufficiency, overturning decades of shortages and the need for expensive imports. It has also allowed Argentina to export oil and gas, helping it to earn foreign currency.

However, some argue that the growth in Añelo and the benefits of fracking are not translating into solutions for Argentina's broader economic challenges. Despite the transformation, the nation continues to grapple with high inflation and debt issues. Critics also point to environmental concerns and the need for better infrastructure to support this booming sector.

Back at Mr Jiménez's garage, business is booming, but he remains cautious: Yes there will surely be oil and gas for many years to come, but that does not mean that Argentina will not continue to experience economic and political ups and downs.