EIA: Mexico’s oil production is stable after 20 years of decline
(WO) — According to the U.S. Energy Information Administration (EIA), Mexico’s oil production gas remained stable since 2019 after 20 years of decline. The EIA expects Mexican production to remain flat until 2024.
Mexico’s production reached an all-time high in 2004 at 3.9 MMbpd and has decreased every year until 2019, stabilizing at 1.9 MMbpd. According to the EIA’s Short-Term Energy Outlook (STEO), the agency expects production to remain around this number through the end of 2024.
Much of this increase in oil production is thanks to private companies. The EIA reports that data from the Mexican government attributed over 5% of the production increase to private companies. This change is massive compared to the less than 1% contribution recorded in 2016.
Before 2013, Pemex, Mexico’s national oil company, was the only oil producer in the country. However, that changed once the government changed the constitution to allow private oil production in 2013.
Other factors that have increased Mexico’s oil production include tapping into higher-producing fields in the Sureste basin, like the Quesqui field, which produced 133,000 bpd in 2022.
The decline saw Mexico’s consumption exceeding production for the first time. The once net-exporter turned into an importer in 2020 due to a sharp decrease in supply. However, economic recovery after the pandemic saw production and consumption breaking even at 1.9 MMbpd.
According to the Oil and Gas Journal, Mexico’s proven oil reserves are at less than 6 Bbbl, falling from above 10 Bbbl reported by International Energy Statistics. Most of these reserves rest in the Sureste basin, over 80%. While major discoveries have been made in Mexico’s natural gas reserves, proven oil reserves have not been found despite extensive exploration campaigns.
However, Woodside Energy has committed to producing the country’s first deepwater oil field in the Gulf of Mexico. This area has massive potential for deepwater oil production if Mexico’s shallow-water production is any indicator. The government of Mexico will capitalize on any deepwater finds, with development plans and private investments on the horizon.
