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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.

New US Gulf of Mexico auction draws major attention
NEWS
USA - December 21, 2023

The USA’s latest offshore oil and gas auction has received high bids equaling USD 382 million for blocks in the Gulf of…

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TEY_post_Anurup-Kumar
Interview
UAE - December 13, 2023

Anurup Kumar, executive director of Oren Hydrocarbons, talks to The Energy Year about the company’s footprint within the…

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Mexican LNG project signs gas trade agreement
NEWS
Mexico - December 07, 2023

Woodside Energy has signed an agreement to purchase 1.3 million tonnes per year of LNG from Mexico’s Saguaro Energia LNG…

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Pemex, New Fortress halt progress on Lakach project
NEWS
Mexico - November 08, 2023

Mexican NOC Pemex and US gas player New Fortress Energy have terminated a deal to develop the deepwater Lakach project in the…

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Kinder Morgan to acquire pipeline entity for $1.8 bln
NEWS
USA - November 07, 2023

Kinder Morgan has decided to acquire NextEra Energy’s pipeline network in South Texas, USA, for USD 1.8 billion, the US…

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USA designates offshore wind blocks for new auction
NEWS
USA - October 31, 2023

The USA has designated four concession areas for its second Gulf of Mexico offshore wind auction, the Bureau of Ocean Energy…

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TechnipFMC awarded work on Mexico’s Trion field
NEWS
Mexico - October 25, 2023

TechnipFMC has signed a manufacturing contract with Australian E&P company Woodside Energy for flexible pipes for the offshore…

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Mexico names new energy minister
NEWS
Mexico - October 17, 2023

Mexican President Andres Manuel Lopez Obrador has chosen a new energy minister, Reuters reported on Tuesday.

Miguel Angel Maciel, who previously held the position of…

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