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

Sun Nov 30 2025 01:52:22 GMT+0200 (Eastern European Standard Time)

The quiet town of Añelo in Argentina has experienced a dramatic transformation from a small, rural community to an energy hub due to the advent of fracking. This article explores how this change impacts local lives and the wider implications for Argentina's economy.

Añelo, once a sleepy town, has witnessed significant growth fueled by the fracking industry in Vaca Muerta, leading to a population increase and a booming local economy. However, while the town has benefited, challenges remain for Argentina's broader economic landscape and the environment.

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. 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%. Today, the town sees around 15,000 workers enter daily, causing significant traffic congestion and economic activity, with Mr. Jiménez's garage becoming instrumental for the thousands of vehicles traversing the town.

Fracking methodologies, borrowed from the successful US model, have reshaped Añelo, transforming its economy and making Argentina energy self-sufficient for the first time in decades. The Vaca Muerta fields, characterized by their vast oil and gas reserves, play a crucial role in this shift. Extracting resources through fracking has allowed Argentina to export and gain foreign revenue, albeit with challenges such as international investor hesitancy due to economic instability.

However, while the local economy thrives, the broader implications for the Argentine economy remain uncertain. Experts suggest that the gains from Vaca Muerta may not be enough to resolve the structural issues faced by the nation, including high inflation and significant public debt. Energized by politics, the support for mining rises, but environmental concerns linger as local opposition groups argue against unchecked exploitation.

Even with business booming, Jiménez captures the sentiment of cautious optimism, recognizing that while oil and gas resources offer potential, they may not alone stabilize the national economy. 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.