Metrology, Tech Drive Modernization In Mexico’s Oil And Gas

Reliable measurement is at the heart of every oil and gas transaction, from well production to refining and transportation. Without it, processes cannot be controlled, risks cannot be mitigated, and revenues cannot be guaranteed. As Mexico’s energy sector contends with aging infrastructure, tight budgets, and increasing pressure to modernize, metrology and technology have become strategic levers for innovation, efficiency, and profitability. Industry leaders argue that the future of oil and gas in Mexico depends not only on producing more hydrocarbons, but on measuring them better, faster, and more accurately.

“What is not measured cannot be controlled, and what is not controlled cannot be improved,” says Crisanto Salazar, Engineering Leader, Power Process Control. For Salazar, metrology is no longer a secondary process; it is fundamental to safety, profitability, and social responsibility. Companies must not only focus on producing hydrocarbons but also on monitoring emissions, preventing equipment failures, and anticipating risks. “Diagnostics remains an area of opportunity,” he adds. “Even though the information is there, if I do not communicate it, it is not worth much. Similarly, if I do communicate it but do not interpret it, it is not worth much either.”

The challenge lies in transforming vast amounts of operational data into actionable insights. For decades, oil and gas companies have operated on corrective cycles, responding to equipment degradation after the fact. Salazar believes the industry must pivot to preventive cycles, using robust new technologies, stronger alloys, and real-time diagnostics to forecast failures before they occur. The difference, he argues, is not just technical but cultural: operators need to adopt new tools and practices quickly, rather than clinging to outdated processes even as better options emerge.

Technology has advanced to the point where real-time reporting is now standard, enabling operators to conduct detailed cause-and-effect analyses and eliminate risks proactively. “Data means you are no longer speculating,” Salazar says. “By avoiding this, we can eliminate undesirable situations and bring the plant to a safer, more profitable condition with fewer shutdowns.”

That emphasis on modernization resonates strongly with service providers across the value chain. Hugo Ruelas, Director General, GA Energy Services, says one of the sector’s most pressing problems is the age of its infrastructure. “In general, oil and gas clients in Mexico have very old infrastructure for measurement and transportation,” he explains. GA Energy has sought to close this gap by offering modernization solutions, often financed by the company itself, to refurbish pipelines, compression stations, and metering stations.

The payoff is clear. “We have seen that when we modernize measurement systems with new technologies, clients end up billing more. These investments pay for themselves over time,” Ruelas says. Demand spans the entire chain, from wellheads to gas plants, and the priority is affordability. For many clients, modernization is less a question of willingness than of financing, so service providers have had to adapt their business models to offer flexible, financeable solutions.

At the heart of these projects is precision. Accurate custody transfer measurements, Ruelas explains, directly affect a client’s income. Inaccuracies not only create inefficiencies but also erode trust across the supply chain. GA Energy has been providing telemetry services to PEMEX for years, supporting well production monitoring and refinery output measurements. Today, the company is expanding into SCADA and automation, reflecting an industry-wide recognition that “no industry, client, or strategic facility can operate without automation, accurate measurement, emergency shutdown systems, gas and fire detection, and real-time monitoring of process variables.”

Even as Mexico lags in some areas, the global shift toward automation and digitalization is beginning to reshape operations. GA Energy is already deploying AI-based measurement systems that can be installed in minutes without interrupting production. While not yet precise enough for custody transfer, such systems provide reliable reference data and represent a broader trend toward flexible, user-friendly technology. Looking ahead, Ruelas sees the Internet of Things (IoT) as the next frontier: “Sensors measuring everything in real time and tools that allow us to easily exploit that information. This is probably five years away.”

For Roberto Villeda, Director General of CalPro, the challenges go beyond technology adoption. He emphasized that Mexico has made important strides in metrology, especially with the transition from the Federal Law on Metrology and Standardization to the Quality Infrastructure Law. “In that sense, we seem to be on a good path,” he said. But funding remains the sector’s Achilles’ heel. “Over this and the past administration, funding for measurement-related areas has been significantly cut. Perhaps the full importance of metrology has not been understood.”

Metrology, Villeda arguees underpins not only industrial processes but also consumer protection and fair trade. Every transaction depends on accurate measurement, yet Mexico still lacks key infrastructure, such as a primary gas measurement laboratory. With vast natural gas distribution networks, the absence of such facilities undermines the precision required to support both domestic and industrial markets. Some private laboratories offer partial solutions, but Villeda sees a need for greater coordination with the National Metrology Center (CENAM) to raise accuracy levels across the board.

Without that commitment, companies face growing risks as instruments age and infrastructure deteriorates. Luis Eduardo Chavarria, CEO, Kepler Oil and Gas, has seen firsthand the consequences of outdated systems. “We have noticed that many instruments are aging and tend to fail frequently,” he said. Regulations may mandate annual calibration, but in many cases, more frequent checks are necessary, sometimes quarterly, due to wear and tear. “This is because of two reasons: the age of the instruments and the deterioration of PEMEX’s operational processes due to lack of infrastructure investment.”

Calibration, Chavarria stressed, is not just a technical detail; it is a matter of systemic reliability. “If PEMEX ensures it delivers precise volumes, then the intermediaries and transporters will also do so. But if PEMEX lacks strength in calibration, it becomes nearly impossible for others to provide reliable service.” While PEMEX has demonstrated a willingness to comply with regulations, systemic underinvestment threatens to undermine these efforts. Strengthening metrology processes, he argues, would allow the state company to provide end users with accurate accounts of both the quantity and quality of hydrocarbons.

Taken together, the perspectives of industry leaders reveal a sector at a crossroads. Mexico has built strong regulatory frameworks and developed a solid base of technical expertise, positioning itself as a regional leader in metrology. Yet, years of underinvestment, aging infrastructure, and slow adoption of new technologies have left significant vulnerabilities. Fuel theft alone accounts for losses of around MX$56 million per day, while illegal imports in 2024 cost the country MX$458 million per day. These challenges have pushed the government to deploy its own tracking and measurement technologies to contain theft and illicit trade. At the same time, opportunities for modernization and innovation are clear, whether through preventive diagnostics, real-time analytics, automation, or AI-based measurement systems.