Shifting Tides in Mexico’s Oil Industry

By 2024, Pemex, Mexico’s state oil company, plans to shift its market strategy and cede 16% of the fuel market to private firms.

This move aligns with President Andrés Manuel López Obrador’s final year in office. A recent presentation revealed these details.

Currently, Pemex holds a dominant position, controlling 84% of the fuel market. Despite the president’s goal of self-sufficiency, the company’s share will decrease.

Pemex’s sales in December 2023 included 1.58 million barrels daily. This volume represented 82% of the market.

The firm’s leader, Octavio Romero Oropeza, emphasized this dominance.

Alejandro Montufar, CEO of PetroIntelligence, shared insights on Mexico’s fuel industry with Bloomberg Linea. He believes Mexico could reach oil independence by 2026.

This expectation considers the current regulatory environment and governmental strategies.

Montufar stressed the need for careful monitoring of Pemex’s progress. He pointed out past delays and potential future disruptions.

International competitors have entered the market

International competitors like Valero, ExxonMobil, Koch, and Shell have entered Mexico’s market.

This change followed an energy reform by former President Enrique Peña Nieto. The government aims to regulate fuel imports more strictly.

Pemex faces challenges in its refining sector. The Dos Bocas refinery, started in July 2022, hasn’t begun commercial operations yet.

Although Pemex improved its refining capacity, it still falls short of its targets. The Tula and Salina Cruz plants will reach full capacity after the current presidential term.

Pemex’s import plans include 298,000 barrels per day to meet a demand of 1.34 million barrels.

The Deer Park refinery’s production, located in the U.S., is part of these imports. Romero Oropeza announced a goal to reduce the deficit to 62,000 barrels by September 2023.

This step moves Pemex closer to self-sufficiency.

He added that the Salina Cruz plant’s operation in 2025 will enable Pemex to refine all its crude oil, currently at 1.8 million barrels daily.