At the start of 2024, Mexico experienced its lowest oil production in twelve months, with the National Hydrocarbons Commission reporting a daily output of 1.88 million barrels.
This represents the lowest level since December 2022, showing a slight monthly decrease of 1.15% and a yearly fall of 2.6%.
Petróleos Mexicanos (Pemex), the state-controlled entity, was responsible for 95% of this production.
The decline mainly stemmed from reduced outputs in the Balam, Maloob, and Quesqui fields.
During an October 2023 presentation, Pemex’s CEO, Octavio Romero Oropeza, discussed the industry-wide issue of declining oil fields.
He stressed the company’s initiatives to mitigate these losses by developing new fields and drilling to bring new production online.
Pemex includes gas condensates in production figures, sparking analyst debate but accepted by entities like EIA and Rystad.
Under President Andrés Manuel López Obrador, Mexico aims for a production milestone of two million barrels per day by September 2024.
This target is part of an effort to stabilize Pemex’s production levels, which had declined under the previous administration.
Initially set at 2.5 million barrels per day, Mexico adjusted its production target to 2 million amid the COVID-19 pandemic.
In short, Mexico faces challenges in managing oil resources, striving to meet production goals amid natural declines and global obstacles.