Mexico sees output fall

Pemex headquarters, Mexico26 August 2013, News Wires – Mexico produced 2.482 million barrels of oil per day in July, the lowest monthly output in nearly 18 years.

President Enrique Pena Nieto is seeking to push a bill through Congress to increase private investment in the oil industry in the world’s 10th-biggest crude oil producer, Reuters reported.

The July production figures, which were released by state-run Pemex, were the lowest since October 1995, according to Energy Ministry data.

Mexico has seen output drop by a quarter since hitting a peak of 3.4 million bpd in 2004.

In September, Congress will formally begin debate over Pena Nieto’s reform plan, which aims to create a new profit-sharing contracting scheme to lure oil companies back to Mexico, where the oil and gas industry was nationalised in 1938.

The government hopes fresh investment will help Mexico exploit deep-water fields and shale deposits, areas where it lacks expertise. If Mexico cannot step up production, it risks becoming a net energy importer this decade, the government says.

The latest Pemex data showed Mexico exported 1.210 million bpd in July, up 11% compared with the previous month. Still, exports are down nearly 40% since 2004, according to Reuters.

Two-thirds of Mexico’s oilfields are in decline. Pemex estimates that oil output at the country’s top producing field, Ku Maloob Zaap, will drop 60% over the next decade.

– Upstream

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