PEMEX Sees Soaring Profits Despite Lower OutputBy Conal Quinn | Wed, 08/03/2022 - 17:31
Among this week’s top stories in the oil and gas industry, PEMEX celebrates a strong 2Q22 amid skyrocketing global oil prices with the NOC also getting production levels back on track this month following a historic slump in April 2022.
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PEMEX registered historic profits in 2Q22, owing to soaring oil prices and strong export levels, which stood at 267Mb/d, a figure “not seen since November 1998,” according to the NOC. PEMEX recorded a net attributable profit of US$65.3 billion, which is equivalent to multiplying its 2Q21 result over nine times, according to the company's quarterly report.
Oil production in Mexico rebounded slightly after hitting its lowest level since the 70s in April 2022. The increment was boosted by the state company PEMEX, according to the most recent data from CNH. The commission registered 1.62MMb/d, a marginal growth of 0.5 percent, or 8Mb/d more compared to production in May.
After years of planning, an important port for the offshore oil and gas sector is set to be constructed in Veracruz, aiming to take advantage of the state’s favorable location in the Gulf of Mexico and set a benchmark for high-tech seaports in Mexico. The local Minister of Economic and Port Development (SDEP) has been planning to develop the Alvarado terminal, considered to be of great strategic importance, and the project will receive funding from both the public and the private sector.
Mexico’s oil and gas industry is one of the key drivers of the country’s economy. Since the beginning of his administration, President López Obrador pledged to make its development a priority. Mexico Business is proud to extend an invitation to the eleventh edition of the Mexico Oil & Gas Summit 2022, from Sept. 21 to 23, 2022. Throughout the three-day event, the industry’s most important leaders, investors, and decision-makers will gather to discuss the sector's future and develop new business opportunities.
State electric utility CFE and Sempra Infrastructure, a subsidiary of the US company Sempra, announced several agreements to advance the development of natural gas infrastructure projects in Mexico. The joint venture aims to strengthen Mexico’s energy infrastructure and North America’s energy integration, boosted by growing opportunities in the international natural gas market.
BP reported a profit of US$8.5 billion for 2Q22, its biggest windfall in 14 years, making it the latest oil giant to cash in on higher crude prices as Russia’s war in Ukraine disrupts global energy markets.
Critics argue that Olaf Scholz’s government was slow to react when Russia squeezed gas supplies. Now, cities are cutting back on lighting and hot water in a bid to avert a major supply crisis.
Another oil supermajor, Shell, reported record profits in 2Q22 due to an increase in oil and gas prices and refining margins. All members of Big Oil, ExxonMobil, Chevron, ConocoPhillips, BP, Shell, Total and Eni, have reported massive profits for the quarter, with Exxon and Chevron achieving record quarter earnings. The companies beat earnings in quarters that saw US$147/b in 2008.
Three groups are bidding for a from US$500 million to US$750 million order covering phase two of Turkish Petroleum’s huge Sakarya development.