Fracking Transforms Añelo: A Microcosm of Argentina's Energy Revolution

Fri Nov 28 2025 08:19:14 GMT+0200 (Eastern European Standard Time)

The small town of Añelo in Argentina has experienced a radical transformation due to the fracking boom in the neighboring Vaca Muerta formation, raising questions about the broader implications for the nation's economy and environment.

Añelo, once a sleepy town, has grown significantly since the introduction of fracking in 2014, with its population expanding by over 60%. As it becomes a hub for oil and gas production, questions arise about the sustainability of this growth and its potential to resolve Argentina's 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 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 weekday. This has made the roads very busy, including lots of oil tankers going through.

Añelo is located in the heart of Vaca Muerta, a 30,000 sq km 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 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, according to the Argentine Institute of Oil and Gas.

The oil and gas from Vaca Muerta has given Argentina energy self-sufficiency, overturning decades of shortages and the need for expensive imports.

However, while Añelo thrives, the broader Argentine economy remains a mix of hope and skepticism about oil and gas exploitation as a solution for its historical economic woes, including inflation and precarious public spending.

Jiménez remains cautious about the sustainability of this growth: 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.