May 22, 2019 · The industry also attracts workers from around the country; the population of Carlsbad has doubled since 2016 as a result. Last year, New Mexico produced a record 250 million barrels of oil, up 46 ...
The irony of it all is that Mexico only committed to 2 months of production cuts in May-June 2020, despite the general OPEC+ agreement charting the global course until April 2022; moreover the ...
Apr 27, 2020 · Below we will identify 5 reasons why Mexico’s oil industry is destined to suffer. Falling Production. For 15 years already, Mexico has been struggling to reverse a seemingly terminal production decline. When President López Obrador came to office, he vowed to fulfill one of his main campaign promises to bring oil production to 2.7mbpd by 2024.
Apr 26, 2020 · Below we will identify 5 reasons why Mexico’s oil industry is destined to suffer. Falling Production. For 15 years already, Mexico has been struggling to reverse a seemingly terminal production ...
When President López Obrador came to office, he vowed to fulfill one of his main campaign promises to bring oil production to 2.7mbpd by 2024.
Following the crude market’s “Black Monday'' on April 20 when US futures dived into negative territory for the first time ever, the agreed OPEC+ production cuts have already attested their insufficiency.
PEMEX’s traditional annual hedge, oftentimes presented as some sort of magic wand against market turbulence, will only yield some 300 million this year. This is primarily because the PEMEX hedge only covers some 20% of crude exports, having been fixed at a price of 49 per barrel from December 2019 to December 2020.
And never forget that Mexico's 2013 deregulation was based on extending self-sufficiency, not on increasing reliance on supply from the U.S. Pipeline constraints mean power outages and supply curtailments. CFE is now seeking to renegotiate the take-or-pay clauses of contracts that could mean wasting tens of billions of dollars for gas that is not even being delivered.
Mexico currently gets 60% of its power from gas, and 65% of the country's total gas usage is supplied by the U.S. In Mexico, this overreliance on the U.S. is becoming more of a concern since the U.S. seeks to export huge amounts of gas (via LNG) to countries all over the world.
Last reported at $107 billion, state-owned Pemex is the most indebted oil and gas company in the world, where profits that should be used for more E&P investment get taken by the government. 3. With half of Mexico poor, leadership must satisfy the largest incremental energy needs of any member of the OECD.
Oil, gas, and power auctions are getting canceled for no explained reason. In short, deregulation efforts to modernize Mexico's energy sector could collapse. Mexico's ability to export oil has continued to decline and is crushing federal revenues. 5.
Palace in Mexico City, Mexico, on Monday, Feb. 25, 2019. Obrador said that conflict in Venezuela should be resolved by peaceful negotiations, and not by intervention. Photographer: Alejandro Cegarra/Bloomberg. © 2019 Bloomberg Finance LP. 1.
Mexico's ability to export oil has continued to decline and is crushing federal revenues.