Pemex reported its Reserves Replacement Ratio (RRR) for 2017 in a report sent to the U.S securities and Exchange Commission (SEC). The NOC reported a recovery in RRR compared to previous year, but it is still below the industry standard of aiming to replace 100% of annual production with new discoveries.
Mexico has great potential in the exploration and production of hydrocarbons, but there are many areas that have not been sufficiently explored, especially in the Gulf of Mexico. The National Polytechnic Institute (IPN) announced work on this subject.
The two companies signed the first contract to evaluate and develop the Eagle Ford unconventional gas field.
Pemex needs to start producing in new areas to recover its poor metrics in this regard. The company is optimistic about the Ek and Balam production potential. The company presented its development plan for these fields.
Mexico has recorded poor drilling metrics in recent years as a result of the Pemex crisis. However, prospects for the short term are positive, as the National Hydrocarbons Commission (CNH) expects this metric to increase substantially.
The Mexican government wants to promote the development of unconventional projects in the country, since the potential of these resources is enormous. However, these techniques have a bad reputation and there are growing concerns and controversies about their possible application in Mexico.
Mexico is facing tough times in its natural gas sector, especially because of low production and its low budget to invest in the sector. However, some of the basins of the country have a huge gas potential, even higher than some United States basins.