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Mexico's Energy Industry

Mexico

in figures

Oil reserves6.1 billion barrels

Oil production1.93 million bopd

Gas reserves200 bcm

Gas production29.2 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.

A top-tier logistics player Rudolf-HESS
Interview
Mexico - September 28, 2022

Rudolf Hess, president and CEO of R.H. Shipping, talks to The Energy Year about how the company has consolidated its local and…

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TEY_post_Enrique-ZEPEDA (1)
Interview
Mexico - September 27, 2022

Enrique Zepeda, CEO of Transportes Aéreos Pegaso, talks to The Energy Year about the recovery of Mexico’s offshore aviation…

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Talos Energy acquires Gulf of Mexico assets
NEWS
USA - September 23, 2022

Talos Energy has signed agreements to acquire US deepwater player EnVen Energy Corporation to expand its US Gulf of Mexico…

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Pioneers in Mexico’s LPG cylinder manufacturing Arturo-MENDEZ-HIDALGO
Interview
Mexico - September 22, 2022

Arturo Méndez Hidalgo, CEO of Armebe y Menher, talks to The Energy Year about competition in the LPG cylinder manufacturing…

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A formula for success in the Mexican power sector Angie-SOTO
Interview
Mexico - September 20, 2022

Angie Soto, managing director of Nexus Energía Mexico, talks to The Energy Year about opportunities in the Mexican power sector, key incentives for pushing the…

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Innovative financing for energy in Mexico Arturo-BETETA-DEL-Rio (1)
Interview
Mexico - September 19, 2022

Arturo Beteta del Río, general manager of Volta Capital, talks to The Energy Year about the company’s approach to financing energy projects in Mexico, the nature of…

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Interview
Mexico - September 16, 2022

John D. Lawrence, CEO of Petricore, talks to The Energy Year about why private-sector participation is key in Mexico, the central role of deepwater plays and the…

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Murphy Oil in Mexico efficient execution TEY_post_Gabriel-GOMEZ
Interview
Mexico - September 15, 2022

Gabriel Gomez, Murphy Oil Corporation’s Mexico country manager, talks to The Energy Year about the key challenges for Mexico’s E&P bid rounds, the company’s plans…

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Shell extends drillship contract in Mexico
NEWS
Mexico - September 12, 2022

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.…

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Competitive dynamics in Mexico Rodolfo-Alfonso-ESQUIVEL
Interview
Mexico - August 31, 2022

Rodolfo Alfonso Esquivel, general director of Grupo Roales, talks to The Energy Year about the competitive dynamics transnationals bring to the Mexican market, the…

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