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Mexico's Energy Industry


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.

Talos Energy finds partner for Mexico’s Zama field
Mexico - May 26, 2023

Talos Energy has signed a deal with Mexican conglomerate Grupo Carso that will see the latter take stake in the offshore Zama…

Wintershall Dea hits major oil find offshore Mexico
Mexico - April 26, 2023

Wintershall Dea has made a major oil discovery at the shallow-water Kan prospect on Block 30 in Mexico, the German oil and gas…

In Trinidad, bp builds an energy future bpTT David-CAMPBELL
Trinidad and Tobago - April 19, 2023

David Campbell, president of bp Trinidad and Tobago (bpTT), talks to The Energy Year about how Trinidad’s oil and gas sector…

Mexico moves to nationalise power generation sector
Mexico - April 06, 2023

The Mexican government has acquired 13 local power generation facilities from Spanish utility company Iberdrola for USD 6…

US offshore drilling auction sees $264 mln in bids
USA - March 31, 2023

The USA’s latest oil and gas drilling auction for plays in the Gulf of Mexico has generated USD 264 million, Reuters reported…

Pemex to develop offshore Zama field in Mexico
Mexico - March 24, 2023

Pemex and partners have submitted their plans to develop the Zama field in Mexico, the Mexican state-owned energy company…

MEDENG: an upgrade in MPFM technology
Mexico - November 23, 2022

MEDENG is a pioneering multi-phase flow meter (MPFM) technology provider for the oil and gas industry, with its main headquarters in Calgary, Canada. The company…

Pemex reboots Lakach gasfield development
Mexico - November 22, 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.…

Mexico - November 09, 2022

Merlin Cochran, general director of the Mexican Association of Hydrocarbons Enterprises (AMEXHI), talks to The Energy Year about Mexico’s roadmap to energy…




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