Fracking on the Table: The Week in Oil and Gas

During the Tamaulipas International Energy Congress 2025, unconventional resources were back at the center of the energy debate. Walter Ángel, Minister of Energy Development, Tamaulipas, urged Mexico to move beyond political stigma and discuss hydraulic fracturing from a strictly technical and energy-security perspective.

Ready for more? Here is the weekly roundup!

PEMEX Support Drives MX$284 Billion Revenue Gap

Mexico’s federal government is facing a MX$284 billion revenue shortfall through October 2025 as extraordinary financial support for PEMEX continues to outpace the company’s fiscal contributions, according to México Evalúa. The gap has begun to strain public spending across several ministries and underscores the broader fiscal challenges tied to the state-owned oil company’s financial instability.

Harbour Energy Submits Phased Development Plan for Zama

Mexico remains an important pillar in Harbour Energy’s global growth strategy in its 3Q25 results, as it reports that its phased development plan for Zama has been submitted to the regulator. The company reported production of 473Mboe/d through the end of September and narrowed its full year guidance upward, driven by stronger than expected performance in Norway, the United Kingdom, and Argentina. Although Mexico is not yet a producing asset for Harbour, it stands out as one of the company’s most significant future growth engines.

Oil Prices Stress Markets; PEMEX Refining Strategy Under Scrutiny

Global oil markets ended last week under pressure as crude prices continued to decline, refining margins eased, and elevated freight rates constrained long-haul arbitrage opportunities, as reported by Sparta Commodities.

West Texas Intermediate futures closed below US$60/b, extending a downward trend driven by weaker sentiment and uncertainty surrounding geopolitical negotiations, including possible developments in Ukraine. According to the report, market participants see continued pricing pressure unless tensions escalate significantly in Russia or Venezuela.

Mexico Cites Fuel Sales Recovery as Evidence of Lower Theft

President Claudia Sheinbaum said Wednesday that PEMEX’s rising fuel sales reflect progress in reducing illegal fuel imports and tax-related smuggling, adding new data that shows a gradual recovery in gasoline and diesel demand following years of volatility. Speaking at her morning press conference, Sheinbaum rejected the idea that PEMEX operations are at risk despite the company’s recent disclosure to the US Securities and Exchange Commission that fuel theft remains a material concern. She said the report reflects standard regulatory requirements, not operational deterioration.

PEMEX Sees 2025 Gas Recovery, Not Full Rebound

PEMEX’s natural gas output continued to climb through 2025, marking a gradual recovery after last year’s pronounced decline, although production remains below levels seen during most of the previous administration. According to company data, PEMEX reached 4.780Bcf/d of natural gas in October 2025, a 9.43% increase compared to January, when production stood at 4.368Bcf/d. The improvement reflects the first year of the company’s new operational plan, which includes a mandate to raise national gas output to 5Bcf/d as part of broader efforts to stabilize the state-owned company and reduce Mexico’s dependence on imported fuel.

2025 Marks PEMEX’s Lowest Output Since MORENA Took Office

PEMEX’s crude output has continued to struggle through 2025, marking the lowest annual production levels since 2018 and underscoring the structural and operational pressures facing Mexico’s state-owned oil company. Recent data shows that while production has stabilized slightly in the second half of the year, the company remains far from meeting the federal government’s target of 1.8MMb/d, a figure presented by President Claudia Sheinbaum as both a ceiling to limit fossil fuel dependence and a benchmark for operational recovery.