Mexico: positioning for a transformational upstream opening in 2015

Journal article

Since the late 1800s, Mexico has been a prolific, predominantly light oil producing region; its development has mirrored the initial oil booms (which were occurring at the same time) on its borders in California and Texas. Mexico has multiple established billion barrelsized fields onshore and offshore, with reservoirs having high production rates throughout several key regions.

In 1937 the government took over the petroleum industry, creating the state-owned monopoly PEMEX as the country’s sole oil and gas producing company and investor. Over the last two decades PEMEX has developed a large portfolio onshore and in shallow water, underpinned by attractive low costs and P1 P2 P3 reserves. However, it is estimated by CNH, the Mexican upstream regulator, that there are over 260 fi elds that are in decline or underdeveloped and in need of investment. These reserves lack the traditional development investment programmes that are successfully being implemented in the USA including: down spacing, stimulation and enhanced oil recovery (EOR) methods, deeper drilling technologies and completion methods including the horizontal drilling and fracking so popular and successful in its northern neighbour. Mexico’s proven base of resources is quite unique and within the top 10 on a world scale relative to other international emerging areas that have received high investment interest over the last five years, such as Uganda, Kenya, Tanzania, and Morocco. Mexico is set to become one of the most attractive new emerging areas in the E&P; industry.

Authors: Sandrea, I; Taylor, R

• Publication status: Published
• Peer review status: Peer reviewed
• Publisher: Oxford Institute for Energy Studies
• Journal: Oxford Energy Forum
• Issue: 98
• Pages: 30-34
• Publication date: 2015-01-12
• ISSN: 0959-7727
• Language: English
• Keywords: OIES