Introduction to Pemex and its Relevance
Petróleos Mexicanos (Pemex) is Mexico’s state-owned petroleum company, responsible for exploration, production, refining, and marketing of petroleum and petrochemical products. As the largest company in Mexico, Pemex plays a crucial role in the country’s economy and energy security. Understanding its performance is essential for assessing Mexico’s overall economic health and energy sector stability.
Pemex’s Production Performance in August 2025
On August 25, Pemex released its production statistics for the month of August. The data covers both the Exploration and Production sector, which deals with crude oil production, as well as other productive areas such as industrial production, including the national refinery system.
- Crude Oil Production: Pemex reported an average daily production of 1,379,000 barrels of crude oil.
- Total Production (including condensates): The total production reported was 1,648,000 barrels per day.
While there has been a marginal improvement in production, it is important to note that compared to September 2024 (under the previous administration), crude oil production (excluding condensates) has dropped by 6.7%. This indicates a challenging operational performance, as Pemex has faced significant difficulties in maintaining its production rate over the past seven years.
Comparison with Previous Administration
When comparing the first ten months of the current administration to those of the previous one, it is evident that the current administration has encountered more operational challenges with Pemex. During November 2018 to September 2019, crude oil production increased slightly from 1,697,000 barrels per day to 1,705,000 barrels per day—a mere 0.4% rise. Despite having better control now, due to the new constitutional status and reorganization efforts, Pemex’s performance has been hampered.
Refinery Performance and Challenges
The Olmeca refinery, located in Dos Bocas, initially reported processing around 200,000 barrels of crude per day in June. However, by July, the daily average dropped to 156,000 barrels—an 18% decrease. Although this is better than the Tula refinery’s 22% drop, it still highlights significant instability in the national refinery system’s production processes.
Moreover, Pemex’s Margen Variable de Refinación (MVR)—an indicator of refinery performance relative to the market—was reported at 4.40 USD per barrel in the second quarter. Although this represents a substantial improvement from the previous year’s 0.84 USD per barrel, it remains below the MVR achieved by refineries operated by companies in the United States and India. Thus, maintaining these operational results at refinery level will be crucial for Pemex’s future success.
Key Questions and Answers
- Q: What is Pemex’s current production performance? A: Pemex reported an average daily crude oil production of 1,379,000 barrels, totaling 1,648,000 barrels per day when including condensates.
- Q: How does Pemex’s performance compare to the previous administration? A: Crude oil production (excluding condensates) has dropped by 6.7% compared to September 2024 under the previous administration.
- Q: What are the challenges faced by Pemex’s refineries? A: Refinery production processes show significant instability, with the Olmeca refinery in Dos Bocas experiencing an 18% decrease in crude oil processing between June and July.
- Q: How does Pemex’s refinery performance compare to international standards? A: Pemex’s Margen Variable de Refinación (MVR) is below that of refineries operated by companies in the United States and India, indicating room for improvement.
Conclusion
In summary, Pemex faces considerable challenges not only financially but also operationally. The decision to revert to a nationalist model has yet to demonstrate its necessity for the country’s needs.
