BUENOS AIRES (Reuters) -Drilling and fracking activity in Argentina’s Vaca Muerta, the world’s fourth-largest unconventional oil reserve, is plateauing due to lower oil prices and rising costs, a slowdown that could complicate the political agenda of libertarian President Javier Milei.

The huge Vaca Muerta formation in western Argentina accounts for 64% of the country’s oil production even though only 8% of it is under development.

It is vital to Argentina’s economic future and Milei’s government, which needs to increase the country’s energy exports to bolster Argentina’s dollar reserves and build confidence in the government’s ability to maintain a stable currency.

Slowing drilling and fracking in Vaca Muerta may add to challenges facing Milei, whose approval levels have dipped amid po

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