Oil production perspectives have been the main topic of recent weeks; some are positive and others negative. The International Energy Agency (IEA) spoke about the possible behavior of this important metric in Mexico for this year.
Everyone knows Pemex’s difficult situation in terms of oil production. Budget cuts and operational problems have prevented Pemex from solving this situation. However, the company expects to start reporting increases in the short term.
Pemex has been facing a financial and operational crisis during several years, but the company continues to be a reference in Latin America. The consulting firm Brand Finance published its Global 500 2018 report, in which Pemex stands out compared to other companies in the region.
The refining sector is facing tough times as a result of several operational and financial problems in the main refineries in Mexico. However, Pemex announced a strategy to increase substantially its production in 1Q18.
The National Hydrocarbons Commission (CNH) tendered 29 blocks last Wednesday in the Round 2.4. The results of this auction surpassed the government’s expectations, managing to award several blocks. Major industry players participated actively in this round.
The government liberalized the gasoline market last year, eliminating subsidies so others could compete, but this caused an increase in prices, generating much social discontent. However, it did help Pemex improve its fuel revenues.
Pemex has been reporting a constant fall in its oil production during several years and this tendency could continue in the short and medium term. The Mexican Association of Hydrocarbons Companies (AMEXHI) is pessimistic about the behavior of this metric in the future, but Carlos Treviño, Pemex CEO, believes that the negative trend will change in a couple of years.