Decline in Mexico's oil & gas output accelerates in November

Mexico's output of crude oil fell 9% year-on-year to an average of 1.49Mb/d (million barrels per day) in November, down from 1.63Mb/d in November last year, according to figures released by hydrocarbons regulator CNH.

Including condensates, output dropped 9% to 1.75Mb/d.

President Claudia Sheinbaum has pledged to keep production at the 1.8Mb/d level.

State-owned oil company Pemex produces 94% of Mexico's oil. However, struggling with a debt burden of US$97bn, Pemex does not have the resources to invest in exploring and developing new fields as its older fields mature and decline.

The previous Mexican government cancelled plans to open up more of the country's upstream to foreign producers and Sheinbaum has vowed to strengthen Pemex's control over the sector.

The decrease in natural gas production was even steeper than the drop in crude output, falling by 14% 3.5Bf³/d (billion cubic feet per day) in November from 4.2bf³/d 2023 in the same month of last year.

Over the course of the year, there has been an acceleration in the pace of decline of both oil and gas output.

According to CNH data, crude oil output in January 2024 was 3% lower than in January 2023. Natural gas production was down 4%.