Mexico Is a Gas Rather Than Oil Country, Says Héctor Moreira

Mexico has long been known for its oil production, but according to Héctor Moreira, Commissioner, CNH, its prospective resources of natural gas are much larger than those of oil. 

In a forum at the Senate of the Republic, Moreira explained that 2P reserves, both for oil and gas, will last approximately 18 years for Mexico. Reviewing the prospective resources, Mexico has 7.2Tcf of proven gas resources, according to EIA, much larger than its prospective oil resources.

"We have more gas resources than oil. We are a gas nation rather than an oil one," said Moreira. He further clarified that at the international level, the country ranks sixth when reviewing gas reserves and 18th in oil reserves. However, despite this potential, Mexico still imports 75% of its gas resources from abroad. 

This highlights the need for an increase in gas production. Nevertheless, delays in the construction of new pipelines and other infrastructure have increased the country’s dependency on imports from the US. Currently, the US accounts for around 80% of Mexico's natural gas imports. Mexico has also been exploring the option of importing natural gas through a new pipeline going from Texas to Tamaulipas.

While importing natural gas from the US remains affordable due to low prices and a relatively short distance, experts say it is important to become independent to avoid the scenarios of inconsistent supply. CEPAL warns that a policy of self-sufficiency and security is urgently needed. 

According to CNH, there are about 476 areas for natural gas exploration and development that have not yet been assigned and 224Tcf of prospective gas resources under Mexican soil, located in the northeast region. The country can exploit these resources and “take advantage of the latest unconventional technologies, like slick water fracturing and horizontal drilling. Of course, there is one more ingredient needed: huge investments,” wrote  José Luis Mercado Ponce, Commercial and Institution Relations Vice President, Grupo México Infraestructura, for MBN.

Moreira believes that it is imperative to develop national content to attract more investment, particularly in the petrochemical sector, where 86 percent of derivative products depend on natural gas compared to 14 percent that comes from oil.

According to data published by the International Energy Agency (IEA), the consumption of natural gas is expected to rise until 2050. By then, it would constitute 40% of the market share. This drastic shift denotes the effort made by countries to reduce greenhouse gas emissions (GHG). “Natural gas and renewable energy will keep growing in the coming years, while gasoline will slowly lose relevance," said Moreira.