Fracking Revolutionizes Añelo: An Argentine Town's Journey Amid National Challenges

Fri Dec 05 2025 06:44:55 GMT+0200 (Eastern European Standard Time)

Discover the transformative impact of fracking in Añelo, Argentina, where an oil boom has dramatically altered both the town and the national economic landscape, raising questions about the future of energy and the economy.

Fracking has turned the small town of Añelo into a bustling hub, growing its population and economic activity significantly since 2014. As the heart of the Vaca Muerta oil and gas fields, Añelo's booming business environment contrasts sharply with Argentina's broader economic struggles, marked by inflation and public debt issues. Despite the local successes, analysts caution that the potential of Vaca Muerta may not resolve the country's systemic economic problems. Local merchants and officials share insights into the growth and challenges faced in this energy-rich region.

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.

Fueled by its newfound 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.

The first fracking operation in Vaca Muerta was a joint venture 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.

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

Despite the local successes, analysts emphasize that the potential of Vaca Muerta may not fully resolve Argentina's systemic economic issues, including high inflation and persistent debts. Environmental concerns also raise eyebrows, as the debate continues over its impact amidst national and political dynamics favoring energy extraction.