During the eleventh month of the year, the Mexican oil company's oil extraction fell 10.2% to 1,407,000 barrels per day, which was its biggest decline since the 10.3% drop in April 2019.
Petroleos Mexicanos (Pemex) crude oil production fell in November at its highest annual rate in more than five years, marking 24 consecutive months of year-on-year declines, according to the company's oil statistics published on Tuesday, December 24.
During the eleventh month of the year, the Mexican oil company's oil extraction fell 10.2% to 1,407,000 barrels per day, which was its biggest decline since the 10.3% drop in April 2019, when the indicator was still on the downward trajectory that characterized it during the administration of former Mexican President Enrique Peña Nieto (2012-2018).
This pumping volume is already the lowest for Pemex since the one observed in May 1979, which was 1,401,000 barrels per day, that is, more than 45 years ago.
The weakening of production coincides with the delicate situation of the state-owned company's delays in paying its suppliers, which include multiple exploration and production service providers.
Some of these companies, according to sources with knowledge of the matter, have paused or reduced their level of activity, due to the lack of payment by Pemex, which as of the third quarter of 2024 had accounts payable with suppliers for 402.874 billion pesos (US$ 19.966 billion), a record level.
According to Mexican President Claudia Sheinbaum, the public company will be up to date by February through partial payments.
LIQUID HYDROCARBONS, ALSO ON THE DOWN
When considering Pemex's total production of liquid hydrocarbons, which also includes condensate pumping, the story is not much different.
In November, condensate production fell 8.1% to 267,000 barrels per day, reaching its lowest level since December 2022 (241,000 barrels per day).
Thus, the production of liquid hydrocarbons (crude oil, plus condensates) fell 9.9% to 1,673,000 barrels per day, the lowest volume since July 2020 (1,647,000 barrels per day).
Since the last six-year term, Pemex has reported its crude oil and condensate production in a consolidated manner, although the latter have a smaller market.
Today, condensates - also called natural gasoline because they are very light - represent 15.5% of Pemex's liquid hydrocarbon production and have been crucial to stopping the decline in Pemex's pumping during the government of Andrés Manuel López Obrador.
However, experts such as Fluvio Ruiz, a former professional advisor to Pemex, have highlighted the need for Pemex to be more transparent regarding the fate of this type of hydrocarbons.
PRODUCTION PER ASSET
From January to November, the production of liquid hydrocarbons fell 5.6% to 1,772,000 barrels per day.
This is the lowest volume since 2021 for the same period of months (1,755,000 barrels per day) and also the first year-on-year drop in the indicator since the 7.9% slide observed in 2019.
Looking at the figures for Pemex's 11 major producing assets, seven of them have seen declines. Noteworthy are the declines seen in four of the oil company's top five assets.
Of the latter, the most pronounced was the Cantarell asset - once the jewel in the crown of Mexican shallow waters - whose pumping fell by 12.9% to 143,000 barrels per day.
On the Tabasco coast, production fell 12.2% to 288,000 barrels per day, while the Bellota-Juco asset saw a 10.6% decline to 339,000 barrels.
Meanwhile, Ku-Maloob-Zaap, which has been the state-owned company's main asset for more than a decade, fell 4.4% to 589,000 barrels per day, which accounted for a third of Pemex's total crude and condensate production.
NEW GOAL
The new reality of Pemex's declining assets, despite the fact that hydrocarbon production stabilized during the last six-year period, has forced the state-owned company to recalibrate its production goals.
For this six-year term, the government of President Claudia Sheinbaum Pardo has set a national production goal of 1.8 million barrels per day.
However, this volume also includes the production of private operators who hold the production contracts that were auctioned during the six-year term of former President Enrique Peña Nieto, after the sector was opened to private capital.
According to the National Strategy for the Hydrocarbons and Natural Gas Sector (ENSHGN) presented on November 13, Pemex's average production target for 2025-2030 is 1,702,200 barrels per day.
Meanwhile, private production would average 99,333 barrels per day, peaking in 2026 at 112,000 barrels per day.
According to ENSHGN, during this six-year term, attention will be given to strategic fields such as Zama and Trion, where Pemex has partnerships with private companies.
In addition, mixed projects (public-private) will be promoted "that allow for increased reserves and production," but always under the corporate control of Pemex.
