Mexico: Time For Action!
Release Date: 2012-02-10 00:00:00
It is home to the world’s second largest non-public company by market value, with assets totaling U$ 417.75 billion; it has been the US’ second or third biggest oil provider in the last three years with imports of more than 1 million bbl/d; as of 2010, it ranked seventh among the world oil producers, ahead of Norway, the United Kingdom, Venezuela, Iraq, and Brazil; it is a stable and plural democracy with free trade agreements with all major economies; its oil and gas sector contributes to more than a third of the national government budget and 15% of its exports; and violence is actually lower than in its other three major Latin American oil and gas counterparts Colombia, Venezuela or Brazil. It’s Mexico.TO VIEW FULL REPORT CLICK HERE
Mexico Oil and Gas: Time For Action!
Mexico Oil and Gas: Time For Action!
It is home to the world’s second largest non-public company by market value, with assets totaling U$ 417.75 billion; it has been the US’ second or third biggest oil provider in the last three years with imports of more than 1 million bbl/d; as of 2010, it ranked seventh among the world oil producers, ahead of Norway, the United Kingdom, Venezuela, Iraq, and Brazil; it is a stable and plural democracy with free trade agreements with all major economies; its oil and gas sector contributes to more than a third of the national government budget and 15% of its exports; and violence is actually lower than in its other three major Latin American oil and gas counterparts Colombia, Venezuela or Brazil. It’s Mexico.
TO VIEW FULL REPORT CLICK HERE
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One must wonder how broken the Mexican PR machine is. Although most news that crosses the Rio Grande is soaked in stereotypes of slow-moving bureaucracy, production and reserve declines (all of them true to a certain degree), the opportunities hidden south of the border outweigh those challenges by far.
That is not to say that the Mexican oil and gas industry is not at a crossroads. Its oil output has fallen from 3.5 million bbl/d in 2004 to a projection of 2.6 million bbl/d in 2012. Though the government says it has reached the bottom, the US Energy Department projects that, if current trends and policies are left unchanged, the Mexican oil production will decline by an additional 600,000 bbl/d by 2020, transforming what was once the second biggest oil exporter into a net importer. The consequences of such a scenario would be devastating not only for Mexico itself but for the US as well. If Mexico becomes a net oil importer, America’s desire to decrease its energy dependency from “unreliable sources” elsewhere would be seriously jeopardized.
But PEMEX, the NOC that holds the monopoly over all hydrocarbons under Mexican soil, has a somewhat different production scenario for the coming years. Even though reserves have fallen for the 12th consecutive year up to 2010, when proved reserves fell 1.4 percent to the equivalent of 13.8 billion barrels of oil, the company is hoping to replicate its apparent success in 2011 in stabilizing its proved reserves. From 2013 on, it hopes to increase its net proven reserves in order to augment its production to around 3.3 million bbl/d by 2024 and add to its current reserves’ life of about 10 years.
TO VIEW FULL REPORT CLICK HERE