Mexico is a major non-OPEC oil producer and home to one of the world's largest oil companies, Pemex. Mexico has the fourth largest proven crude oil reserves in the Western Hemisphere after Canada, Venezuela, and the United States.
The Mexican Congress established Petróleos Mexicanos (Pemex) on June 7, 1938 in conjunction with the nationalization of the foreign oil companies then operating in Mexico. Pemex is the only company, according to the Constitution, that can have ownership to oil and gas reserves. Pemex is however rapidly expanding its co-operation with the international oil and gas industry to develop the significant oil and gas potential in Mexico.
The Mexico pages provide information from INTSOK's advisor in Mexico, an overview of planned activities, links to key actors in Mexico and presentations from INTSOK events.
About Mexico
• Population: 115 million
• The oil industry was nationalized in 1938
• The national oil company Pemex has a monopoly
• Pemex has launched a program of service contracts
• Mexico is one of the top three sources of U.S. oil imports
• Oil production is now stabilized after several years of decline
• Oil is a major part of the economy
Oil
Most reserves consist of heavy crude oil varieties, with the largest concentration of reserves occurring offshore in the southern part of the country, especially in the Campeche Basin. Sizable reserves in Mexico's onshore basins in the northern parts of the country. Pemex is looking to develop Mexico's deep offshore reserves in the Gulf of Mexico, and shale oil deposits in the north. More than half of remaining oil reserves may be in the deep waters.
The Cantarell field fed Mexico for close to 30 years. It was the world’s third-largest field when it was discovered in the 1970s. Production has been in decline since peak production around 2 million barrels per day in 2005.
Mexico nationalized its oil sector in 1938, creating Pemex as the sole oil operator in the country. Pemex has four operating subsidiaries: Exploration and Production, Gas and Basic Petrochemicals, Petrochemicals, and Refining. The 2008 reforms gave Pemex slightly more autonomy. Pemex has also been allowed to enter into service companies, but they are not allowed to book reserves.
Pemex is the largest company in Mexico and one of the largest oil and natural gas companies in the world.
Oil overview 2010
• Proven oil reserves: 11,5 billion barrels
• Oil production: 2,9 million barrels per day
• Oil consumption: 2 million barrels per day
Natural Gas
Domestic gas production is in decline. More than 60 percent of the gas is associated with oil. Pemex has increased focus on reducing flaring and on developing the shale gas potential. Onshore fields in the northern part of Mexico represented 36 percent of gas production in 2010.
U.S has increased its gas exports to Mexico. 17 pipelines are now connecting Mexico into the gas grid. LNG imports required to meet the needs and a third regasification plant have been opened. The gas demand is driven by the petroleum sector and power sector. Mexico is experiencing the greatest growth from the power sector which increased its demand with more than 250% in the last decade.
The gas industry
• Proven natural gas reserves: 0,5 trillion cubic meters
• Natural gas production: 55 billion cubic meters
• Natural gas consumption: 68 billion cubic meters
Main Markets
Other Priority Markets
