Petroleos Mexicanos, also know as Pemex, will reduce crude oil exports in 2022 before phasing out sales abroad in 2023.
ByAmy StillmanBloomberg
Published On 28 Dec 202128 Dec 2021
Mexico plans to end crude oil exports in 2023 as part of a strategy by the nationalist government of Andres Manuel Lopez Obrador to reach self-sufficiency in the domestic fuels market.
Petroleos Mexicanos, the Mexican state-owned producer known as Pemex, will reduce crude oil exports to 435,000 barrels a day in 2022 before phasing out sales to clients abroad the following year, Chief Executive Officer Octavio Romero said during a press conference in Mexico City on Tuesday.
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The move is part of a drive by Lopez Obrador to expand Mexico’s domestic production of fuels instead of sending its oil abroad while it imports costly refined products, like gasoline and diesel. Mexico currently buys the bulk of the fuels it consumes from U.S. refineries.
If fulfilled, Pemex’s pledge will mark the withdrawal from the international oil market by one of its most prominent players of the past decades. At its peak in 2004, Pemex exported almost 1.9 million barrels a day to refineries from the Japan to India, and was a participant in meetings by the Organization of Petroleum Exporting Countries as observer.
Last month, the Mexican company sold abroad slightly more than one million daily barrels, according to Pemex data.
The export reduction will come as Pemex increases its domestic crude processing, which will reach 1.51 million barrels a day in 2022 and 2 million daily barrels in 2023, Romero said. The Mexican driller will plow all of its production into its six refineries, including a facility under construction in the southeastern state of Tabasco and another one being bought near Houston, Texas. This plant is considered part of Mexico’s refining system even if located across the U.S. border.
Asian refineries, which account for more than a quarter of Mexican crude exports, are expected to bear the brunt of the export cuts. The reductions are expected to hit refiners in South Korea and India the hardest, with smaller cuts seen to buyers in the U.S. and Europe, as Pemex backtracks on earlier plans to diversify away from the U.S. market.
FAQs
The move is part of a drive by Lopez Obrador to expand Mexico's domestic production of fuels instead of sending its oil abroad while it imports costly refined products, like gasoline and diesel. Mexico currently buys the bulk of the fuels it consumes from U.S. refineries.
Is Mexico self sufficient in oil? ›
The Energy Secretary declared that by 2024, the country will have energy self-sufficiency and they will no longer need to buy diesel or gasoline abroad. For Hernández, AMLO's commitment to energy sovereignty marks a tremendous shift in the path the country was on previously.
Is Mexico cutting oil production? ›
The production of liquid hydrocarbons in the fourth quarter of 2023 showed a quarterly decrement of 15.3 thousand barrels a day due to a reduction of 21.7 thousand barrels a day of Pemex's crude oil production despite an increase of 7.0 thousand barrels a day of condensates.
Who is the largest exporter of oil in the world 2023? ›
Saudi Arabia is the world's largest oil exporter, followed by Russia and Canada. Norway, Nigeria, and Kazakhstan round out the list of top 10 oil exporters.
How long will Mexico oil reserves last? ›
Oil Reserves in Mexico
Mexico has proven reserves equivalent to 13.0 times its annual consumption. This means that, without Net Exports, there would be about 13 years of oil left (at current consumption levels and excluding unproven reserves).
How self sufficient is Mexico? ›
Prior to the North American Free Trade Agreement (NAFTA), Mexico was nearly self-sufficient in corn, importing just 7% of its needs. By 2008, import levels rose to 30%, and in 2022, they reached 38%. Wheat import dependency has risen from 18% before NAFTA to 66% today.
Where does Mexico get most of its oil? ›
The Sureste Basin, which is located mostly offshore of Mexico's southeast coast (previously known as the Campeche Basin) accounts for 81% of those reserves. Of the remaining reserves, 14% are in the Tampico-Misantla Basin, and 5% are in the Veracruz Basin.
Who owns Mexico's oil? ›
Pemex (a portmanteau of Petróleos Mexicanos, which translates to Mexican Petroleum in English; Spanish pronunciation: [ˈpemeks]) is the Mexican state-owned petroleum company managed and operated by the Mexican government.
Who controls Mexico's oil production? ›
The Mexican government established a national petroleum company, Petroleos Mexicanos (PEMEX). PEMEX is solely responsible for managing Mexico's oil industry, including exploration, production, refining, transportation, and marketing of oil products.
Who controls the oil industry in Mexico? ›
A number of state-owned enterprises were set up, Petróleos Mexicanos (PEMEX) among them. Created on 6 June 1938, PEMEX remains in state hands to this day. Under the Mexican Constitution, it enjoys a monopoly on the exploration, production and distribution of hydrocarbons, oil refining and petrochemical products.
Saudi Arabia: Saudi Arabia is the world's largest oil exporter and plays a crucial role in the global oil market. The country is known for its massive oil reserves and its ability to influence oil prices through its production decisions.
Who does the US buy oil from 2023? ›
The top five source countries of U.S. gross petroleum imports in 2023 were Canada, Mexico, Saudi Arabia, Iraq, and Brazil. Note: Ranking in the table is based on gross imports by country of origin. Net import volumes in the table may not equal gross imports minus exports because of independent rounding of data.
Who sells the most oil in the world? ›
Crude oil export revenue by country (annually) A world map of countries by oil exportation, 2020. In 2022, Saudi Arabia was the largest exporter of petroleum, followed by Russia and Iraq. Other major exporters of petroleum in that year included the United States, Canada and United Arab Emirates.
Is Mexico rich in oil? ›
Mexico has the seventeenth largest oil reserves in the world, and it is the fourth largest oil producer in the Western Hemisphere behind the United States, Canada and Venezuela. Mexico is a member of OPEC+ and the North American Free Trade Agreement.
Does Mexico sell oil to us? ›
In 2022, the United States imported over 637 million barrels of Mexico's heavy crude and exported over 1.8 billion barrels of refined petroleum products to Mexico.
How much oil does the US buy from Mexico? ›
The US has imported 31.68 million barrels of fuel oil from Mexico in the first half of 2022, averaging 5.28 million barrels a month, and exceeding first half 2021 imports by 11 million barrels. "Five million barrels a month? That's insane," said one Latin America fuel oil trader.
Does Mexico refine its own oil? ›
MEXICO CITY, Sept 27 (Reuters) - Crude oil processing at Mexico's six local refineries rose slightly in August, data from state-owned oil company Pemex showed, but the facilities are operating at barely half their capacity, forcing the country to import large volumes of fuel.
Does the US buy oil from Mexico? ›
In 2022, Mexico ranked 13th globally in crude oil production, 21st in crude oil reserves, 16th in refined capacity, and fifth in logistics infrastructure. In 2022, the United States imported over 637 million barrels of Mexico's heavy crude and exported over 1.8 billion barrels of refined petroleum products to Mexico.
Does Mexico supply oil to us? ›
The resulting total net petroleum imports (imports minus exports) were about -1.64 million b/d, which means that the United States was a net petroleum exporter of 1.64 million b/d in 2023. The top five source countries of U.S. gross petroleum imports in 2023 were Canada, Mexico, Saudi Arabia, Iraq, and Brazil.
How much untapped oil does Mexico have? ›
Mexico has extraordinary untapped natural resources: "an estimated 545 trillion cubic feet of technically recoverable shale gas and 13 billion barrels of shale oil," according to an analysis by Nick Cunningham for OilPrice.com.
