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Mexico Overview

Mexico

in figures

Oil Reserves7.2 billion barrels

Oil Production2.22 million bopd

Gas Reserves200 bcm

Gas Production40.7 bcm

Mexico: Latin America's New Energy Powerhouse

The implementation of the Energy Reform Act in August 2014 marked a new era not only for the Mexico’s domestic hydrocarbons industry, but also for the country itself. Among the changes resulting from the act are the restructuring of NOC Pemex to increase efficiency and the opening of oil and gas value chain from E&P to retail to private foreign and domestic companies. Since 2015, two four-tender rounds have taken place, as well as the first auction of Round 3.1. Three more tenders were scheduled for 2018, but have been postponed. Additionally, in 2016, Pemex began farming out some of its more complex acreage to private companies with greater technological expertise and financial resources.

In addition to the reform, one of the biggest drivers of change in Mexico’s energy industry is growing demand for natural gas. Consumption is expected to rise by 64% between 2013 and 2027. Since 2010, Mexico’s gas imports from the USA have grown by 300%, and the US Energy Information Administration predicts they will double by 2019. Demand is outpacing storage and distribution capacity, a problem that has spurred the government to lay out the Five-Year National Integrated Natural Gas Transportation and Storage Plan 2015-2019 which will expand the natural gas pipeline network.

Despite being a crude oil exporter, Mexico has been a net fuel importer since 1998.  Pemex has taken steps to stem losses downstream, by partnering with private investors for upgrades and expansions at several of its ageing refineries. Additionally, the country’s new president is promoting a project to build a new mega-refinery in Tabasco. The liberalisation of fuel prices across the country was completed in November 30, 2017. That, coupled with fuel demand growth, has created an environment in which local and foreign, small and large fuel retailers can prosper. In March 2017, BP became the first private foreign fuel retailer in the Mexican market. Since then, several others have entered the sector.

An essential role for private players in Mexico Jaguar Warren LEVY
Interview
Mexico - January 24, 2022

Warren Levy, CEO of Jaguar E&P, talks to The Energy Year about prospects in Mexico’s hydrocarbons sector, why the company is…

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Mexico’s Pemex takes over Texas refinery
NEWS
Mexico - January 21, 2022

Mexican NOC Pemex has completed its takeover of Shell’s 50% stake in the 340,000-bpd Deer Park refinery in Texas as part of a…

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Mexico books

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Mexico’s energy security and sovereignty IMP Marco Antonio BONILLA OSORIO
Interview
Mexico - January 19, 2022

Marco Antonio Osorio Bonilla, general director of the Mexican Petroleum Institute (IMP), talks to The Energy Year about the…

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Murphy Oil awards offshore drilling contracts
NEWS
USA - January 19, 2022

Valaris has signed two contracts with US E&P company Murphy Oil for use of their semi-submersible Valaris DPS-5 in the US and…

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Mexico Exploratory Areas Map

Mexico maps

Mexico Exploratory Areas

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Transborder energy infrastructure in North America Sempra Mexico Tania ORTIZ MENA
Interview
Mexico - January 12, 2022

Tania Ortiz Mena, president of Sempra Infrastructure for Mexico, talks to The Energy Year about the rationale behind the…

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FPSO arrives at Eni’s pioneer Mexico offshore block
NEWS
Mexico - January 06, 2022

Eni has received an FPSO at its offshore Area 1 project in Mexico, and now plans to ramp up production in the early part of…

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