Monthly and Annual Production Trends
According to the latest statistics published in Petróleos Mexicanos (Pemex)’s Institutional Database, the state-owned oil company’s crude oil production increased by 1% on a monthly basis in July, reaching 1.379 million barrels per day (bpd). However, this represented an 8% annual decline or a loss of 118,000 bpd in this indicator.
The total production of liquid hydrocarbons stood at 1.648 million bpd in July, mirroring the crude oil production growth and showing a 6.9% annual reduction. This highlights Pemex’s struggle to maintain consistent production levels.
Condensate Production
In addition to crude oil, Pemex also produces condensates, which are associated liquids found in hydrocarbon reserves with higher value but a less flexible market. In July, condensate production reached 268,566 bpd, marking a 2% monthly increase and a 2.5% annual decrease.
Refinery Processing Capacity
Pemex operates seven refineries in Mexico, processing 1.023 million bpd of crude. This accounts for 52.5% of the installed capacity, with a monthly reduction of 7.5%, or 83,000 bpd less than in June. Annually, there was a 1% increase in processing.
Dos Bocas Refinery Performance
The newly built Dos Bocas refinery in Paraíso, Tabasco, experienced a monthly reduction of 18% in crude processing in July, reaching 156,265 bpd. The refinery utilized only 46% of its total capacity of 340,000 bpd.
Production Goals
Pemex aims to sustain 1.8 million bpd of oil production throughout this six-year term. However, recent trends indicate challenges in meeting these targets.
Key Questions and Answers
- What is Pemex? Petróleos Mexicanos (Pemex) is Mexico’s state-owned petroleum company, responsible for exploration, production, refining, and marketing of oil and natural gas.
- Why is Pemex’s production decline significant? The decline in production affects Mexico’s energy security, government revenue from oil exports, and the country’s ability to meet its domestic energy demand.
- What are condensates, and why is their market less flexible? Condensates are light hydrocarbons that exist as gases or liquids in natural gas reservoirs. Their market is less flexible due to limited infrastructure and transportation options compared to crude oil.
- What are the challenges faced by Pemex’s refineries? Refineries face reduced crude processing due to lower production from Pemex and must adapt to changing market conditions, including increased demand for cleaner fuels.
- What are Pemex’s production goals, and how is it progressing? Pemex aims to maintain 1.8 million bpd of oil production, but recent trends show monthly and annual declines in crude oil production, making it difficult to achieve this goal.
