The Week in Oil and Gas: PEMEX Stumbling Toward Higher Output

PEMEX Production Hits 40-year Low

Figures reported by CNH this week show that PEMEX oil production hit a 40-year low in October of this year.

CNH information shows that PEMEX produced 1.616MMb/d in October, the lowest output since November 1979 when it produced 1.165MMb/d.

PEMEX to Push Production at Ek-Balam

Despite October’s figures, the NOC’s production has a brighter future with reports saying the company will increase production by 36 percent next year at one of its most important fields: Ek-Balam.

According to PEMEX, next year will see an increase of 66Mb/d in the field, which is located some 63km from the Campeche coast. This increase will be propelled by 12 new wells to be drilled, as well as 13 well interventions.

Mexican Crude Price Rises

The Mexican crude price rose 1.49 percent last week, an equivalent of US$0.75, to hit a sale price of US$50.95 per barrel.

The Ministry of Finance and Public Credit said the prices’ accumulated increase over the year was 14.01 percent or US$6.26 per barrel.

Global Prices Fluctuate due to US-China Relations

The positive outlook for global oil prices seen during the start of the week due after constructive words from China and the US has been stripped back following US President Donald Trump’s signing of the Hong Kong Human Rights and Democracy Act in support of Hong Kong protestors.

At the beginning of the week, the Brent oil price had risen US$0.07 while WTI rose US$0.08, reflecting the rise in price of Mexican crude.

However, following President Trump’s show of support to Hong Kong protestors, the Brent price dropped US$0.14 to US$63.92 per barrel and WTI fell US$0.13 to US$58.24 per barrel.

Gas Station Owners to Invest US$15billion in 2020

Gas station companies are set to invest MX$15billion and build at least 175 new gas stations in Mexico next year, says the National Organization of Petroleum Dispensers (ONEXPO).

According to ONEXPO, most of the investment will go into technology and lighting at the stations, which enable gas owners to provide a higher-quality customer service.