Key facts
- Peter Thiel acquired a 1% stake in Vista, a key player in Argentina's Vaca Muerta shale formation.
- The investment amounted to $76 million in American depositary shares.
- This investment follows a meeting between Thiel and Argentinian President Javier Milei.
- Vaca Muerta is considered the world's second-largest shale oil and gas deposit.
- Oil production in Vaca Muerta hit a record 887,227 barrels per day in May.
- Analysts project Vaca Muerta's oil output could reach 1 million to 1.5 million barrels daily by 2030.
Hedge fund owner Peter Thiel has acquired a 1% stake in Vista, a significant operator within Argentina's Vaca Muerta shale formation, for $76 million. This investment underscores the growing potential of Vaca Muerta, recognized as the world's second-largest shale oil and gas deposit, particularly amidst a global energy crunch.
The acquisition, made through American depositary shares, occurred four months after Thiel met with Argentinian President Javier Milei to discuss economic policies. President Milei is also exploring the development of data centers in Patagonia, a venture that would benefit from the region's abundant and affordable oil and gas resources.
Vista currently produces approximately 160,000 barrels of oil equivalent daily from Vaca Muerta and has invested over $6.5 billion in the area, with plans for further expansion. Major oil companies are also establishing a presence in the formation, anticipating a significant oil boom.
Production figures indicate a surge in Vaca Muerta's output, with crude oil reaching an all-time high of 887,227 barrels per day in May, a 19% increase year-over-year. Natural gas output also saw a substantial rise. These developments have positioned Argentina as Latin America's fourth-largest oil producer, a rank expected to improve as the government prioritizes energy sector development.
Analysts anticipate Vaca Muerta's oil production could reach between 1 million and 1.5 million barrels daily by 2030, driven by substantial investments from local entities like YPF and international oil majors. Shale oil and gas now form the majority of Argentina's total production. Experts note that Argentina offers a prime entry point into Vaca Muerta for international companies seeking to leverage North American shale expertise.