Fracking Boom in Añelo: A Local Transformation with National Implications

Thu Nov 27 2025 13:51:35 GMT+0200 (Eastern European Standard Time)

As fracking has transformed the rural town of Añelo into a bustling hub of economic activity, questions loom over its long-term impact on Argentina's economy and environment.

Añelo, a small Argentine town, has experienced a dramatic population increase due to fracking, thriving amid an energy boom. Local businesses flourish, but fears remain about the environmental ramifications and the broader economic stability in Argentina. Experts consider these developments while addressing the country's structural economic challenges.

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.

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, accounting for over half of Argentina's oil and gas production.

The oil and gas from Vaca Muerta has given Argentina energy self-sufficiency, helping it to overturn decades of shortages and the need for expensive imports. Last year, there was a significant external surplus in the energy sector of $6bn [£4.6bn], says Nicolás Gadano, chief economist at Empiria consultancy. However, he cautions that this boom may not rectify Argentina's deeper economic issues.

While Añelo's transformation reflects the positive impact of fracking, concerns about environmental implications and infrastructure challenges persist. Critics argue that insufficient pipelines and bad credit ratings hinder international investment, limiting the full potential of Vaca Muerta's vast resources.

Despite the economic opportunities, Jiménez remains skeptical about the long-term viability of relying solely on the oil and gas industry. 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, he reflects.