register now for free unlimited access to reuterscom register oil rigs are seen at vaca muerta shale oil and gas drilling in the patagonian province of neuquen argentina january 21 2019 reutersagustin marcarian buenos aires sept 6 reuters  argentina is on track to hit record oil output this year from its massive shale deposits which are already responsible for record natural gas production a key local official said on tuesday amid a national push to grow domestic energy supplies located in western neuquen province the vaca muerta shale formation is the worlds secondlargest shale gas reserve and the fourthbiggest for shale oil and holds the promise of helping argentina lessen its roughly 20 dependence on costly foreign natural gas imports neuquen governor omar gutierrez told reporters during an event in buenos aires that vaca muerta currently produces a record 91 million cubic meters per day 32 billion cubic feet per day of natural gas he added that by december oil output from the prolific shale play will exceed 308000 barrels per day vaca muertas growing production has allowed argentina to reduce energy imports in value terms by 4 billion during the southern hemispheres winter said gutierrez due to the substitution of cheaper domestic gas supplies the governor added that the value of vaca muertas oil exports will likely reach 2 billion this year or five times more than shipments last year a major new natural gas pipeline aims to connect vaca murtas surging supply with populous buenos aires province home to the nations capital with construction on the first phase of the pipeline set to begin in october the project aims to boost gas transport capacity from vaca muerta by 11 million cubic meters per day and generate savings of some 22 billion in imports in 2023 according to official estimates reporting by eliana raszewski editing by david alire garcia and jonathan oatis