CNH Highlights Outlook for Unconventional Plays

According to the CNH, unconventional plays represent a great opportunity for Mexico to increase oil and gas production. Mexico could benefit from international experience and information on unconventional deposits to increase its self-sufficiency goal.

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CNH Has a New President: Agustín Díaz Lastra

Agustín Díaz Lastra has been appointed as CNH’s new president. Díaz is an Economist who graduated from UNAM with a Master’s in Education. The commission president’s main mission will be to support the government in reaching its mission of energy self-sufficiency.

Opportunities, Challenges for Production in Unconventional Plays

The CNH published a document to highlight the areas of opportunities and challenges for Mexico in unconventional plays. The five key opportunity areas where Mexico can benefit are international experience, available technology from other experienced countries, reduction in emissions, economic activity from the development of the supply chain and the national petrochemical industry.

Government Does Not Discard Deepwater Production

PEMEX Exploration and Production (PEP) evaluated Contract Area 3 Cinturón Plegado with Chevron and Inpex. The administration has been clear on keeping its production efforts in shallow water, although many experts agree that more investment in deepwater and unconventional plays is needed. However, some efforts in deepwater have increased. PEMEX found two important prospects for exploration in Cinturón Plegado: Alebrije and Aztlán. Another oil field that remains as a great area of interest is Trión, which features investment from PEMEX and BHP Billiton. Therefore, PEMEX does not discard activity in deepwater, though it retains focus on shallow water.

Taxpayers and Oil Save Mexico's Income in September 2022

Mexico’s budget revenue amounted to MX$4.9 trillion (US$249.32 billion) between January and September, which is a 4.8 percent increase year-over-year. Oil income and tax collection, which according to the Finance Ministry remained constant, made up most of this figure. In addition, the Special Tax on Production and Services (IEPS) retains a negative balance for the sixth consecutive month due to the government’s fuel subsidies.

PetroBal Expects to Increase Production at Ichalkil and Pokoch by 33 Percent

Carlos Morales, CEO, PetroBal, 2022’s production is on average 30Mb/d, and the projection for 2023 is 40Mb/d. PetroBal plans to reactivate several wells over the following two months. It also plans to drill two more wells in 2023.  According to Morales, about MX$1.5 billion (US$76.2 million) have been invested in Ichalkil and Pokoch so far.

OPEC Cut Production by 20Mb in October

OPEC+ agreed to cut oil production by 100Mb/d for October. According to Reuters, OPEC did not meet the production quota and cut production by 20Mb/d in October.