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Mexico Overview

Mexico

in figures

Oil reserves6.1 billion barrels

Oil production1.6 million bopd

Gas reserves200 bcm

Gas production30.1 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 spurred the government to lay out the Five-Year National Integrated Natural Gas Transportation and Storage Plan 2015-2019 which aimed to 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.

CENAGAS enhancing Mexico’s gas pipeline network Abraham-David-ALIPI-MENA
Interview
Mexico - August 01, 2022

Abraham David Alipi Mena, general director of the Centro Nacional de Control del Gas Natural (CENAGAS), talks to The Energy Year…

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Comprehensive and cutting-edge well services Nucelo Sepec Mako YANEZ
Interview
Mexico - July 13, 2022

Mako Yáñez, CEO of Núcleo Sepec, talks to The Enegry Year about how the company has secured its key position in Mexico’s…

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Pemex partners to develop Lakach offshore gasfield
NEWS
Mexico - July 08, 2022

New Fortress Energy has signed a long-term strategic partnership with NOC Pemex to jointly develop the Lakach deepwater gasfield…

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Natural gas vehicles on the rise in Mexico AMGNV GNV Andrés BAYONA INSIGNARES
Interview
Mexico - July 01, 2022

Andrés Bayona Insignares, president of the Mexican Association of Natural Gas Vehicles (AMGNV), talks to The Energy Year about…

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Complete solutions for Mexico’s gas infrastructure GENSA Oscar MENDOZApsd
Interview
Mexico - June 29, 2022

Oscar Mendoza, gas director for Mexico and Central America of Gasoductos y Estaciones del Norte (GENSA), talks to The Energy Year about how the company is working to…

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Baker Hughes in Mexico competitive technology Robert PEREZ
Interview
Mexico - June 22, 2022

Robert Pérez, Baker Hughes’ vice-president and regional leader for the Americas, talks to The Energy Year about the growth of the Mexican petroleum sector, the…

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Nuvoil a story of strategic alliances José EDEL ÁLVAREZ DELONG
Interview
Mexico - May 26, 2022

José Edel Álvarez Delong, CEO of Nuvoil, talks to The Energy Year about the latest developments on the Perdiz and Papan gas processing plants, the importance of…

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