PEMEX’s Crude Production Falls in August

In August, PEMEX’s crude production decreased by 1 percent compared to the previous. During the first 8 months of 2022, it only increased 1.8 percent since the start of the year, as production remains below the government’s goals of 1.82MMb/d.

Export levels, as well as production of PEMEX and its associates, decreased 1 percent during August in comparison to the previous month. According to NOC’s data, 1.779MMb/d were produced, a 3 percent increment compared to the same month in 2021.

As for the oil the state-owned company extracts from the fields assigned to it by the government, including the shallow-water shared production contract shared of Ek Balam and contracts with third parties, PEMEX produced 1.69MMb/d in August, a month-over-month decline of 0.94 percent, but a 3.62 percent increase compared to 2021.  

Meanwhile, the NOC produced 88Mb/d of condensates, representing a 2.2 percent decrease compared to July. Nonetheless, compared annually, the volume of condensates extracted was 20.5 percent more than during the same period in 2021.

Heavy oil, used most by national refineries, saw a production of 943Mb/d in August, 0.53 percent more than the previous month and 0.43 percent more than in Aug 2021. Light crude oil, whose production had increased in previous months, had a setback with 491Mb/d, 0.2 percent less than the month before and a glaring 9.24 percent less than in August 2021.

Moreover, exports dropped to 915Mb/d, which is 13.8 percent less than in July. President López Obrador has repeatedly said the country will stop exporting crude to reach energy self-sufficiency, though high crude oil prices appeared to had convinced the NOC to alter its course. Nevertheless, López Obrador still aims for Mexico to be self-sufficient regarding gasoline and diesel by 2024, although PEMEX foresees refined oil production supply deficits as early as next year. The company is anticipating a deficit of 47Mb/d in 2023 and 97Mb/d in 2024 for its refined oil supply, mainly due to modifications at its Cangrejera plant, even though oil production is expected to climb 14 percent to 2MMb/d by December 2022.