reports increases in production when accounting changes

Pemex is under pressure to increase production after failing to meet last year’s target. Andrés Manuel López Obrador promised to return the company to its past glory by increasing production in onshore and shallow-water fields, where it is less expensive, while reducing investment in more promising deepwater areas, but very expensive to exploit.

Pemex graphic

This graph shows the drop in Pemex production since 2004.

Government policy has held back Pemex’s partnerships with private companies that may help develop more complicated discoveries.

On the other hand, condensate production doubled last year, to reach 46,000 barrels per day, with the discovery of large deposits of condensate and gas in fields such as Quesqui and Ixachi.

However, Mexican oil destined for export markets, such as its emblematic Maya crude oil, continues to decline as the indebted company lacks the resources to invest in large new fields. Pemex has not exported its extra-light Olmeca crude since 2017, while Mayan crude exports fell 11% last year, to 980,000 barrels per day.