Pemex Falls Short on Fuel Production Promises in 2024

Pemex’s fuel production lags behind its ambitious targets for 2024. From January to November, the state-owned oil company averaged 499,000 barrels per day of gasoline, diesel, and jet fuel.

This figure falls 34% short of the 759,000 barrels Pemex projected for the year. The company’s output improved by 18.8% compared to the previous year.

However, this increase fails to meet the goals set by former Pemex director Octavio Romero Oropeza. In July, Romero Oropeza announced plans to produce over one million barrels of fuel daily by September.

Pemex’s production breakdown reveals 288,237 barrels of gasoline, 177,929 barrels of diesel, and 32,473 barrels of jet fuel daily. Gasoline and diesel production increased, while jet fuel output decreased slightly.

These figures highlight the company’s struggle to achieve energy independence. The Olmeca refinery in Dos Bocas, Tabasco, underperforms expectations.

Despite promises of full capacity operation, it produced only 14,362 barrels of petroleum products daily in November. This output includes 7,030 barrels of diesel, 1,582 barrels of gasoline, and 5,742 barrels of coke.

Challenges in Pemex’s Refinery Operations

Pemex reported processing 59,466 barrels of crude oil daily at Olmeca. Analysts suggest this indicates ongoing testing rather than full commercial production.

The government’s August announcement of commercial operations at the refinery seems premature. Former President López Obrador’s August prediction of 340,000 barrels per day from Olmeca remains unfulfilled.

The refinery’s actual output falls far short of the projected 20% of national gasoline consumption. Pemex‘s data contradicts these optimistic forecasts. Crude oil processing at Pemex’s six other refineries also declined.

November saw a 9.2% annual decrease to 692,331 barrels per day, the lowest since October 2023. This drop occurred despite a reported 75 billion peso ($3.72 billion) investment in refinery rehabilitation during the previous administration.

Pemex continues to upgrade its facilities, including new cokers at Tula and Salina Cruz refineries. However, the company’s performance lags behind its stated goals. The gap between promises and reality raises questions about Pemex’s ability to meet Mexico’s fuel needs.