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Released September 12, 2022 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Mexico's state-run Petroleos Mexicanos (Pemex) recently announced its production results for July, registering the strongest monthly oil output in at least two years.
Pemex produced 1.77 million barrels of oil per day (BBL/d) in July, including condensates but excluding its partners' output. This represents the highest monthly oil output for Pemex going back to at least January 2020.
The oil output is in line with Mexican President Andres Manuel Lopez Obrador's objective of strengthening the national oil company. Since coming to power in 2018, Obrador has put Pemex at the center of the government's plans by promising to significantly increase oil production and end Mexico's fuel dependence.
Heavy crude made up 53% of the total production in July, followed by light crude with 28% of the company's output. Condensates volumes averaged 90,000 BBL/d.
Maya grade, the nation's flagship heavy sour crude, is the most produced type of crude, although its output has been declining over the years. Meanwhile, extra-light crude production has been on the rise, taking a more significant percentage of Pemex's total production in recent times.
Pemex was able to arrest the decline in oil output experienced in 2019, when yearly oil production (including condensates and excluding partners of Pemex) averaged 1.68 million BBL/d. Although Pemex has yet to reach the level of oil output once promised by Lopez Obrador, the company has been able to stabilize its production and stop the reductions.
Pemex's aging fields, which have declined in output, are responsible for some of the drop in output. The best example is the Ku-Maloob-Zaap field, Pemex's largest producing complex, where output has dwindled. Nevertheless, the company has been able to bring online new oil fields to help it offset production woes.
Meanwhile, Lopez Obrador has vowed to end fuel dependency and imports from foreign suppliers by increasing local refining output and by expanding the nation's current 1.6 million-BBL/d downstream capacity.
The new Dos Bocas refinery is expected to have a capacity of 340,000 BBL/d. However, several news sources have reported increasing costs and construction delays for the project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for a detailed project report.
Additionally, Pemex recently acquired the 340,000-BBL/d Deer Park Refinery in the U.S. from Shell plc (NYSE:SHEL) (London, England) to further increase the company's refining capacity abroad.
Despite the higher oil output, Pemex registered the second-lowest refined products yield so far this year in July at 902,000 BBL/d, utilizing about 50% of the nation's refining capacity. Still, the output of refined products in July was about 23% higher than in June, which was among the lowest in recent times.
The stronger pace in July, compared with June, resulted from higher crude-processing volumes at the Tula, Salina Cruz and Minatitlan refineries.
In July, gasoline output was 265,000 BBL/d, followed by fuel oil and diesel with 245,000 and 150,000 BBL/d, respectively. Gasoline and fuel oil consistently have been the top two fuels produced by the company in recent years.
Subscribers can click here for all project reports mentioned in this article and click here for all related plant profiles.
Subscribers can click here for all Pemex project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Pemex produced 1.77 million barrels of oil per day (BBL/d) in July, including condensates but excluding its partners' output. This represents the highest monthly oil output for Pemex going back to at least January 2020.
The oil output is in line with Mexican President Andres Manuel Lopez Obrador's objective of strengthening the national oil company. Since coming to power in 2018, Obrador has put Pemex at the center of the government's plans by promising to significantly increase oil production and end Mexico's fuel dependence.
Heavy crude made up 53% of the total production in July, followed by light crude with 28% of the company's output. Condensates volumes averaged 90,000 BBL/d.
Maya grade, the nation's flagship heavy sour crude, is the most produced type of crude, although its output has been declining over the years. Meanwhile, extra-light crude production has been on the rise, taking a more significant percentage of Pemex's total production in recent times.
Pemex was able to arrest the decline in oil output experienced in 2019, when yearly oil production (including condensates and excluding partners of Pemex) averaged 1.68 million BBL/d. Although Pemex has yet to reach the level of oil output once promised by Lopez Obrador, the company has been able to stabilize its production and stop the reductions.
Pemex's aging fields, which have declined in output, are responsible for some of the drop in output. The best example is the Ku-Maloob-Zaap field, Pemex's largest producing complex, where output has dwindled. Nevertheless, the company has been able to bring online new oil fields to help it offset production woes.
Meanwhile, Lopez Obrador has vowed to end fuel dependency and imports from foreign suppliers by increasing local refining output and by expanding the nation's current 1.6 million-BBL/d downstream capacity.
The new Dos Bocas refinery is expected to have a capacity of 340,000 BBL/d. However, several news sources have reported increasing costs and construction delays for the project. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for a detailed project report.
Additionally, Pemex recently acquired the 340,000-BBL/d Deer Park Refinery in the U.S. from Shell plc (NYSE:SHEL) (London, England) to further increase the company's refining capacity abroad.
Despite the higher oil output, Pemex registered the second-lowest refined products yield so far this year in July at 902,000 BBL/d, utilizing about 50% of the nation's refining capacity. Still, the output of refined products in July was about 23% higher than in June, which was among the lowest in recent times.
The stronger pace in July, compared with June, resulted from higher crude-processing volumes at the Tula, Salina Cruz and Minatitlan refineries.
In July, gasoline output was 265,000 BBL/d, followed by fuel oil and diesel with 245,000 and 150,000 BBL/d, respectively. Gasoline and fuel oil consistently have been the top two fuels produced by the company in recent years.
Subscribers can click here for all project reports mentioned in this article and click here for all related plant profiles.
Subscribers can click here for all Pemex project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
