Mexico faces declining oil production, primarily from the Ku offshore and Quesqui terrestrial fields, both vital assets under state-run Petróleos Mexicanos (Pemex).
Recent figures from the National Hydrocarbons Commission show that in March 2024, the country produced 1.86 million barrels of oil daily.
This marked a 3.6% decrease annually—70,000 fewer barrels than the previous year and 8,000 less than the preceding month.
This downturn is the most significant since November 2022.
Despite two decades of falling figures, stabilization efforts have seen some success, particularly with gas condensates.
The Ku field, operational since 1980, was a prolific producer, peaking at 364,000 barrels daily in 2008.
In recent years, production at the Ku field has plummeted to just 12,400 barrels daily under CEO Octavio Romero Oropeza’s oversight.
This decline has been further exacerbated by several fatal accidents since August 2021.
Meanwhile, the Quesqui field, discovered during President Andrés Manuel López Obrador’s term, has also experienced setbacks.
Once producing 207,000 barrels in April 2023, it now outputs only 172,500 barrels daily, a 38% decline.
Pemex generates 95% of Mexico’s total oil, with private companies contributing the remainder.
Pemex aimed for a 2 million barrel daily target by the end of López Obrador’s term. Yet, the projection has been adjusted to 1.88 million barrels.
Since 2019, the administration has infused $51 billion into Pemex for capital injections, debt servicing, and tax reductions.
This funding has decreased the Right to Shared Profit tax from 65% to 30%.
The overarching goal remains to refine all domestic crude within Pemex’s system, though projects like Dos Bocas, Tula, and Salina Cruz face significant delays.
This narrative encapsulates the struggle and resilience of a nation striving to sustain its oil legacy amid modern challenges.
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