MEXICO CITY  – Mexico’s oil output hit a record low in July at 1.605 million barrels per day (bpd), down slightly for both state-run Pemex and upstart private producers and putting the country’s oil patch on track for its lowest production since the 1970s.

Mexican crude oil output slips to record low in July- oil and gas 360

Source: Reuters

Pemex, formally known as Petroleos Mexicanos, produced just 1.548 million bpd in July while private oil companies pumped about 57,000 bpd during the month, both figures down slightly from June, data from oil regulator CNH showed on Tuesday.

Pemex’s July output marks the lowest amount of crude extracted since November 1979, when the then-monopoly producer pumped 1.615 million bpd, according to energy ministry data.

Its production has steadily declined each year since reaching a peak of 3.4 million bpd in 2004, and was most recently hit by an oil price rout earlier this year, budget cuts, as well as a two-month negotiated output cut with other major oil producing countries.

The ailing Mexican oil giant saw its monopoly end with a landmark 2013-2014 energy reform that for the first time allowed private producers to operate oil fields on their own.

Since the beginning of this year, Mexico’s crude oil production has dipped nearly 7%, according to the CNH data.

In July, Pemex produced about 96% of national output, according to the CNH, while the private operators, such as Italy’s Eni and Canada’s Renaissance Oil Corp, contribute around 4%.

President Andres Manuel Lopez Obrador has pledged to revive Pemex and grow its crude production, but he has shown no interest in allowing foreign and private oil companies to grow their footprint, canceling competitive oil auctions that would have been open to them.

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