Pemex oil production down, gas revenue up

July 29, 2014

Pemex E&P head, Gustavo Hernandez GarciaPetroleos Mexicanos, Mexico's national oil company, released 2Q 2014 financial results last Friday.

Total sales increased by $15.9 billion pesos (US$1.2 billion), which represented 4% growth year-over-year. The growth is primarily attributed to a 27.5% jump in natural gas sales, and part of the revenue increase can be attributed to the 14.1% increase in natural gas prices.

Oil production

Gustavo Hernández García, Pemex Exploration and Production's chief, said he expects the company's crude output this year to average 2.441MMbo/d, down 3% from the previous estimate of 2.52MMbo/d.

According to Mexican Energy Ministry data, this will be the lowest production in more than twenty years. Mexico's peak production was 3.38 MMbo/d in 2004, and dropped to 2.52MMbo/d in 2013.

Mexico is the world's 10th-largest crude producer and the third-largest oil exporter to the United States, behind Canada and Saudi Arabia, according to the US EIA. In the past decade, US crude oil imports from Mexico have fallen 47%, primarily as a result of declining crude oil production in Mexico.

Pemex also reported an $8.7 billion peso ($670million) decline in the value of its Burgos basin natural gas assets in northern Mexico.

Overall exports increased by 4.2%, due to a 20% increase in fuel oil exports that the Comisión Federal de Electricidad (CFE) did not consume.

Photo at right of Gustavo Hernández García by Nina Rach.

Related OEdigital coverage:

Mexico energy reform marches on 22 July 2014

Lozada says Pemex will invest $6billion in Cantarell, 2 July 2014

EIA examines US-Mexico crude oil trade, 28 May 2014

Mexico opens the door to foreign investment, 22 April 2014

High hopes for growth, 22 April 2014

Pemex to export Olmeca crude to Europe, 24 January 2014



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