PEMEX August Crude Production Down 8%, Active Rigs Drop 43% YoY

PEMEX reported a mixed operational performance in August 2025, with crude oil production declining year-on-year while natural gas output, petroleum product production, and refinery processing all showed gains. Export volumes and revenues continued to fall sharply, while the number of active drilling rigs dropped significantly, underscoring the challenges facing the state-owned company as it seeks to balance upstream declines with downstream expansion.

Crude oil production averaged 1.37MMb/d in August, down 8% compared to the 1.49MMb/d reported a year earlier. Output remained below PEMEX’s 2024 average of 1.49MMb/d, with no month in 2025 so far reaching that level. The August figure was also weaker than July’s 1.38MMb/d, highlighting the difficulty PEMEX faces in stabilizing long-term production trends.

By contrast, natural gas production showed modest strength. Output reached 4.61Bcf/d, up 1.65% year-on-year from the 4.53Bcf/d in 2024, making August the month with the highest level of production in 2025. It marked only the second time since July 2024 that production has surpassed 4.60Bcf/d, showing gradual gains in line with the government’s objective of reducing import dependence.

Downstream operations continued to increase. Petroleum product output rose 4% to 1.07MMb/d, compared to 1.03MMb/d a year earlier. Gasoline production jumped 20% to 359Mb/d, while diesel output increased 13% to 212Mb/d. Kerosene output nearly doubled to 43Mb/d. These gains were offset by a steep 47% decline in fuel oil production to 162Mb/d, reflecting PEMEX’s ongoing efforts to limit heavy fuel output.

Refinery throughput also increased. PEMEX processed 1.05MMb/d in August, up 6.25% from 990Mb/d last year. The gains were driven largely by the Dos Bocas refinery, which processed 133Mb/d, up 58% year-on-year, and the Tula refinery, which rose to 216Mb/d from 165Mb/d. Other refineries reported mixed results, Minatitlan and Salina Cruz held steady, while Cadereyta and Madero posted lower volumes compared to August 2024.

Despite stronger domestic processing, crude exports fell sharply. PEMEX shipped 500Mb/d in August, down 31.6% from 731Mb/d last year, and a 16% decrease from July 2025. The Americas absorbed the bulk of exports at 355Mb/d, followed by the Middle East with 97Mb/d and the European Union with 48Mb/d. Lower export volumes combined with weaker crude prices pushed export revenues down nearly 40% to US$965 million, compared to US$1.6 billion in August 2024. The Mexican export basket averaged US$62.23 per barrel, down from US$70.66 a year earlier.

Imports moved in different directions. Purchases of petroleum products declined 38% to 458Mb/d, led by sharp reductions in gasoline and diesel imports, which fell 40% and 66% respectively. August was also the first month since April where PEMEX imported fuel oil, bringing in 3.2MB/d. By contrast, natural gas imports rose 13% to 1.01Bcf/d, while petrochemical imports surged 62% to 8.18 million tonnes, reflecting stronger industrial demand and limited domestic supply in that segment.

Exploration activity remained subdued. PEMEX operated 30 drilling rigs in August, down 43% from 53 a year earlier. Of these, nine were dedicated to exploration and 21 to development. The company drilled eight wells in the month, a 47% decline year-on-year, but still the highest monthly figure so far in 2025, nearly double the year-to-date average of four wells. Completed wells followed a similar pattern, nine in total, down from 14 in August 2024, but the strongest monthly figure of the year.

The data highlights PEMEX’s ongoing balancing act. On one hand, downstream results are benefiting from refinery upgrades and stronger fuel output, particularly at Dos Bocas and Tula. On the other, crude oil production remains on a downward trend and export revenues are falling, pressured by both lower prices and weaker sales abroad. Natural gas output showed resilience in August, but rising imports of gas and petrochemicals highlight Mexico’s continued reliance on external supply despite efforts to strengthen national production.