Vaca Muerta

Location:

Northern Patagonia, Argentina

Project risks:

Environmental Destruction, Litigation, Social Harm

Companies:

  • YPF SA
  • Tecpetrol Internacional SLU
  • Pampa Energia SA
  • Pluspetrol Resources Corporation BV
  • Chevron Corporation
  • TotalEnergies SE
  • Vista Energy SAB de CV
  • BP plc
  • Pan American Energy Group SL
  • Wintershall Dea AG
  • Shell plc
  • Exxon Mobil Corporation
  • Petroliam Nasional Bhd (PETRONAS)
  • CNOOC Ltd
  • Gas y Petroleo del Neuquen SA
  • Petroleo Brasileiro SA – Petrobras
  • Dow Inc
  • The Dow Chemical Company
  • QatarEnergy
  • Mercuria Energy Group Holding Ltd
  • Phoenix Global Resources Ltd
  • Equinor ASA
  • GeoPark Ltd
  • China National Offshore Oil Corporation
  • Energia Argentina SA

read less

read more

Location of the Vaca Muerta fracking project. By zooming in, you can recognize how the drill pads fragment the landscape.

Oil and gas companies are wrecking Northern Patagonia with the gigantic Vaca Muerta fracking project. Over 20 companies are turning the region in Argentina's south into a sacrifice zone the size of Belgium, smashing production levels on a yearly basis.1949819499 Up to 1,700 wells are fracked every month in the region.19500 Health issues plague the people living near wells and illegal dumping sites.19501

The oil and gas companies set up new wells almost on a daily basis. The wells fragment the landscape in Vaca Muerta. The Argentine oil and gas company Vista Energy alone announced it wants to start production on 138 new wells by 2026.19502 New infrastructure could further boost the expansion-hungry fracking company’s production. State-owned companies are rushing to build hundreds of kilometers of pipelines across the country.19503 Countless proposals are being drawn up to export the gas as quick as possible, via pipeline or massive LNG terminals.1950419505 Moreover, an expansion project of the North Patagonian railway corridor is underway.19507 It will enable oil and gas companies to transport their products to Bahía Blanca, one of Argentina’s most important ports.19508 All this planned infrastructure aims to export Vaca Muerta gas as quick as possible and further boost gas production.19509

Note: In October 2024, Exxon Mobil Corporation announced an agreement to sell the entirety of its Vaca Muerta assets to Pluspetrol. As the sale was not finalized prior to the release of GOGEL 24 and the company produced from its Vaca Muerta assets throughout 2023, the company remains linked to this Reputational Risk story.

The Vaca Muerta megaproject stretches thousands of miles across Northern Patagonia. The destruction is so enormous, we can see it from space. Credit: Martín Álvarez Mullally, OPSur

Vaca Muerta is being presented as a vehicle of economic independence, a way to reduce public debt while driving social improvements in Argentina.15223 While this outcome is dependent on good policies, other effects are more certain. The project is a carbon bomb. It is among the largest shale gas projects in the world.15225 Emissions from Vaca Muerta could eat up more than 10% of the world’s remaining carbon budget.15227 According to calculations by 350.org and Profundo, the costs of Vaca Muerta’s social and environmental impacts could reach up to USD 5 trillion – far outweighing the projected USD 2 trillion in profits the project could generate.15229Even the World Bank Group, typically an ally of the fossil fuel industry, admits the project poses a significant risk of stranded assets for the public sector in the face of declining global demand for gas.19511

Fracking is a dirty and dangerous technique to extract oil and gas. It is banned in many countries, such as Uruguay, France, the Netherlands, Bulgaria, Ireland and Denmark.14701 Fracking can cause earthquakes and contaminate water sources. According to government records, over 2,000 “environmental incidents” occurred at Vaca Muerta in 2021. These incidents involve blowouts, as well as leaks of gas, lubricants or wastewater. The number of accidents has more than doubled since 2017.15231  Fossil fuel companies pump pressurized water, toxic chemicals and sand into the underground rock to release oil and gas. Together with the desired fossil fuels, they bring some of the wastewater up to the surface again. This waste contains heavy metals and radioactive liquids.15233 In Vaca Muerta, companies are illegally dumping the dangerous mixture into unprotected pits.14703 This oily waste is piling up only a few hundred meters away from people’s homes.14705

Fracking operations in Vaca Muerta make people ill. Fracking chemicals are poisoning people’s drinking water, farmland and harvest.15235 People are suffocating from the persistent smell of oil and gas in the air. It sticks to their noses and dries up their throats. They are suffering chronic health issues such as cancer, asthma and skin diseases.14707 The waste issue is a problem that will continue to worsen, as waste processing facilities are already struggling for capacity.15237 Waste processing companies such as Comarsa, contracted by YPF to deal with its toxic waste, have been accused by prosecutors of simply burying waste they did not have the capacity to process.19512 Spills are being ignored or improperly cleaned up.19513 At the same time, fracking operations regularly lead to earthquakes that rattle and crack people’s houses. People live in constant fear of the next earthquake.19516 Every earthquake threatens to destroy their homes, belongings and health. Before the oil and gas companies started their fracking activities, the people of Vaca Muerta could walk on stable ground. This is no longer the case.14709 Over the course of only 3 weeks between April and May in 2022, 35 earthquakes hit the region.14711 None had been recorded in the area prior to 2015.

The Vaca Muerta megaproject brings Northern Patagonian cities close to collapse. Masses of workers are moving to the area. Cities like Añelo are growing chaotically. Within the last decade, Añelo's population has tripled and it has seen a sharp increase in crime and sexual assault cases.1951419515 Housing and food prices are exploding in Vaca Muerta’s nearby cities.14715 Even the oil and gas workers are struggling to pay their bills by now. More and more people have to move into the poor slums on the outskirts of cities. The health and school systems are completely overburdened. Teachers and doctors have to commute from neighboring towns because they cannot afford rent.14719 In February 2022, a trade union representing 24,000 oil and gas workers went on strike to demand higher wages.14717 They did so again in May 2023 to denounce the “contempt” of industry players for the safety of their employees.15241

The Indigenous Mapuche people also suffer from the dirty megaproject. They have been living in Northern Patagonia for centuries. Now, fossil fuel companies are drilling wells on the Mapuche’s traditional land without their consent.14721 They are invading the Indigenous community’s homeland with wells, pipelines, heavy machinery, access roads and truck traffic.1472314725 In early 2023, Argentina’s National Institute of Indigenous Affairs (INAI) recognized the rights of the Lof Limay Kurref Mapuche community over 4,477 hectares of land in the province of Mendoza. The area had been included in the Vaca Muerta fracking region without the Lof Limay Kurref’s prior, informed consent.15243 Oil and gas companies have already drilled wells and erected pipelines on the land.1524515247

The Mapuche people are fighting back. First, in 2014, they blocked roads to drilling sites for 2 weeks, then for 48 days and then again for another 48 days.14725 With their bodies, they brought Vaca Muerta’s fracking wells to a halt. Protests have continued since.1524915251 Together with the NGO FARN and local citizens, the Wirkaleo Mapuche community is suing the Neuquén province in Northern Patagonia and the State of Argentina. The case has reached Argentina’s supreme court, which remains silent.14727 The Wirkaleo Mapuche want the province to halt all fracking activities until it can guarantee that fracking no longer causes earthquakes in the region.14729

The Mapuche are not alone in their resistance. More and more people are coming together in grassroots initiatives across Northern Patagonia. The Nobel Peace Prize winner Adolfo Pérez Esquivel, a local Catholic Bishop, farmers, doctors, teachers and politicians are speaking up against the destruction of the region.15255 Even the United Nations has urged Argentina to stop the gigantic fracking project.1473115253

Fossil fuel companies like Chevron, Equinor and Shell have endless expansion plans. Financial institutions need to stop them now, before they turn Northern Patagonia into a completely unlivable and poisonous desert.14733

Rosa Sandoval lives in Sauzal Bonito, a village next door to the fracking megaproject. She is pointing to the cracks in her home that the earthquakes leave behind. Credit: Martín Álvarez Mullally, OPSur 
The people who live near to Vaca Muerta are repeatedly protesting against the megaproject. Credit: Multisectorial contra el Fracking de Neuquén

Groups working on Vaca Muerta: Observatorio Petroleo Sur (OPSUR), Enlace por la Justicia Energética y Socioambiental (EJES), Taller Ecologista, Oilwatch LatinoAmerica, Fundación Ambiente y Recursos Naturales (FARN), Periodistas por el Planeta, Asociación Argentina de Abogados Ambientalistas, EcoLeaks

Further Reading:

https://www.urgewald.org/sites/default/files/media-files/FiveYearsLostReport.pdf
https://opsur.org.ar/wp-content/uploads/2019/12/2019-Fractura-Expuesta-6.pdf
https://opsur.org.ar/wp-content/uploads/2019/04/ExportarVM3_baja.pdf
https://farn.org.ar/wp-content/uploads/2020/08/DOC_SUBSIDIOS_2019-2020_FINAL_INGLES_links.pdf
https://farn.org.ar/wp-content/uploads/2020/08/FARN_Vaca-muerta-es-parte-de-la-solucion-v2.pdf
https://farn.org.ar/wp-content/uploads/2020/06/FARN_Infraestructura-en-Vaca-Muerta_Pieza-clave-en-su-explotacion_2020-05.pdf
https://periodistasporelplaneta.com/blog/vaca-muerta/
https://www.banktrack.org/project/vaca_muerta/pdf
https://farn.org.ar/iafonline2019/articulos/vaca-muerta-entre-el-desastre-socioambiental-y-los-argumentos-ecologistas/  
https://www.ejes.org.ar/boletines/img/Ejes-Accidentes-incidentespetrolerosenlacuencaNeuquina.pdf
https://350.org/some-answers-and-a-lot-of-questions-about-the-fire-in-vaca-muerta-argentina/
https://www.boell.de/sites/default/files/2020-01/Web_Perspectivas_Lateinamerika_2019_II-komprimiert.pdf
https://www.greenpeace.ch/de/hintergrund/45644/wir-haben-noch-fuenf-bis-zehn-jahre/
https://www.youtube.com/watch?v=LXBmUiBZX70
https://farn.org.ar/wp-content/uploads/2021/02/DOC_IMPACTOS-VACA-MUERTA_links.pdf

https://350.org/press-release/worlds-second-largest-shale-gas-reserve-is-an-economic-bomb-shows-new-350-org-report/

Sources:

We list the GOGEL companies involved in upstream activities in Vaca Muerta: https://gogel.org/about-data
https://www.lanacion.com.ar/economia/negocios/crecimiento-historico-los-records…
https://econojournal.com.ar/2024/09/mejora-eficiencia-operativa-stock-pozos-duc…
https://www.laizquierdadiario.com/La-basura-del-fracking-en-Vaca-Muerta-un-desa…
https://worldoil.com/news/2024/6/11/vista-energy-to-import-slb-fracking-set-to-…
https://www.pipeline-journal.net/news/completion-vaca-muertas-first-stage-signa…
https://mase.lmneuquen.com/gas/las-5-rutas-que-disena-argentina-llegar-brasil-e…
https://lngprime.com/americas/petronas-and-ypf-ink-land-deal-for-large-lng-expo…
https://www.ambito.com/economia/vaca-muerta-comenzaron-las-obras-del-tren-norpa…
https://www.argentina.gob.ar/noticias/se-aprobo-el-proyecto-de-rehabilitacion-d…
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/natur…
https://elpais.com/america-futura/2023-02-01/argentina-recibira-una-inversion-m…
https://www.reuters.com/markets/commodities/argentinas-vaca-muerta-could-pump-1…
https://350.org/es/estoesvacamuerta/
https://act.350.org/sign/vaca-muerta-una-trampa-de-petroleo-y-gas/?_ga=2.887418…
https://openknowledge.worldbank.org/server/api/core/bitstreams/f8806192-1a48-5d…
https://earthlawyers.org/wp-content/uploads/2018/04/APPENDIX-2-Legal-Status-of-…
https://www.laizquierdadiario.com/El-otro-record-de-Vaca-Muerta-5-6-incidentes-…
https://ejes.org.ar/megaproyecto-vaca-muerta-el-fracking-y-sus-consecuencias/
https://aadeaa.org/nueva-evidencia-prueba-complicidad-empresarial-y-estatal-en-el-tratamiento-ilegal-de-basurales-petroleros/
https://www.desmog.com/2021/03/15/argentina-vaca-muerta-oil-waste-illegal-dumps…
https://es.rollingstone.com/el-patio-trasero-de-vaca-muerta-arg/
https://www.rollingstone.com/politics/politics-features/oil-gas-fracking-radioa…
https://vacamuertanews.com/actualidad/preocupa-la-imposibilidad-de-procesar-el-…
https://www.laizquierdadiario.com/Acusan-por-contaminacion-peligrosa-al-basurer…
https://nacla.org/argentina-vaca-muerta-fracking-resistance
https://insideclimatenews.org/news/14042024/argentina-fracking-earthquakes
https://farn.org.ar/wp-content/uploads/2022/01/AMBIENTE-FRACTURADO_links.pdf
https://opsur.org.ar/2022/05/10/fuerte-sismo-en-vaca-muerta-se-mueve-todo-menos…
https://www.desmog.com/2019/12/12/argentina-fracking-vaca-muerta-vista-us-cauti…
https://www.lmneuquen.com/policiales/en-el-corazon-vaca-muerta-se-dispararon-lo…
http://www.ipsnews.net/2014/10/anelo-from-forgotten-town-to-capital-of-argentin…