UPDATE 1-Mexican crude oil output sinks to lowest level since 1995

Fri Aug 23, 2013 8:08pm EDT

Related Topics

MEXICO CITY Aug 23 (Reuters) - Mexico produced 2.482 million barrels per day (bpd) of crude oil in July, the lowest monthly output in nearly 18 years, state-run oil monopoly Pemex said on Friday.

President Enrique Pena Nieto is seeking to push a bill through Congress to increase private investment in the oil industry in the world's 10th-biggest crude oil producer.

The July production figures were the lowest since October 1995, according to Energy Ministry data.

Mexico has seen output drop by a quarter since hitting a peak of 3.4 million bpd in 2004.

In September, Congress will formally begin debate over Pena Nieto's reform plan, which aims to create a new profit-sharing contracting scheme to lure oil companies back to Mexico, where the oil and gas industry was nationalized in 1938.

The government hopes fresh investment will help Mexico exploit deep-water fields and shale deposits, areas where it lacks expertise. If Mexico cannot step up production, it risks becoming a net energy importer this decade, the government says.

The latest Pemex data showed Mexico exported 1.210 million bpd in July, up 11 percent compared with the previous month. Still, exports are down nearly 40 percent since 2004.

Two-thirds of Mexico's oil fields are in decline. Pemex estimates that oil output at the country's top producing field, Ku Maloob Zaap, will drop 60 percent over the next decade.

FILED UNDER:
We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
Comments (1)
unclerusty wrote:
Having worked in the oil fields world wide, I have seen many countries that nationalize and fail. Example: I was in Peru in 1986 when Allan Garcia was elected president. Belco was in partner running the oil field operations. Allan Garcia nationalized, took Belco’s equipment & run them out of the country. Within 2 years, Peru went from exporting oil to importing. Also look at what has happened in Venezuela after nationalizing.

Another big problem in South American countries is corruption.

Aug 24, 2013 3:02am EDT  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.