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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 domestic hydrocarbons industry, but also for Mexico, the fourth-largest oil-producing country in the Americas. 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.

All the market’s latest developments are covered in The Oil & Gas Year Mexico 2019.

Chevron to triple low-carbon spending to 2028
NEWS
USA - September 14, 2021

Chevron will triple its planned investment in low-carbon projects to 2028 to USD 10 billion, the company announced on…

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Oil extends gains as US Gulf Coast braces for storm
NEWS
September 14, 2021

Oil was down Tuesday morning in Asia, extending gains and remaining near a six-week high. Markets are bracing for another storm…

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Hurricane Ida halts US oil and gas production
NEWS
USA - September 02, 2021

Around 80% of US hydrocarbons operations on the Gulf of Mexico have been halted, government agency Bureau of Safety and…

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Mexico’s KMZ field restarts production
NEWS
Mexico - August 31, 2021

Pemex has restarted operations at the E-Ku-A2 platform on Ku-Maloob-Zaap field, Mexico’s state-run operator said on Monday.…

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Mexico Exploratory Areas Map

Mexico maps

Mexico Exploratory Areas

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BHP approves spending on Gulf of Mexico asset
NEWS
USA - August 06, 2021

BHP has given the green light for spending of USD 544 million on the Shenzi North project in the Gulf of Mexico, the company…

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Plains, Oryx to consolidate US pipeline networks
NEWS
USA - July 15, 2021

US pipeline players Plains All-American and Oryx Midstream Holdings have agreed to share pipeline infrastructure in the Permian…

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Oil up, US production slowly coming back
NEWS
Multinational - February 22, 2021

The implementation of the Energy Reform Act in August 2014 marked a new era not only for the domestic hydrocarbons industry, but also for Mexico, the fourth-largest…

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Oil down on demand recovery worries
NEWS
Multinational - October 14, 2020

The implementation of the Energy Reform Act in August 2014 marked a new era not only for the domestic hydrocarbons industry, but also for Mexico, the fourth-largest…

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