Source: Houston Chronicle
Mexico’s state-run oil company Petroleos Mexicanos, or Pemex, reported slightly higher production figures but posted a $4.6 billion loss during the third quarter amid sagging exports and domestic sales.
In a Monday morning statement, Pemex reported a $4.6 billion loss on $18.4 billion of revenue during the third quarter. The figures are down compared to a $1.4 billion profit on $23.1 billion of revenue during the third quarter of 2018.
The third quarter loss erased small production gains for crude oil, natural gas and refining capacity. During the third quarter, Pemex’s crude oil exports fell by 22 percent year-over-year while domestic sales of gasoline, diesel and other products fell by roughly 20 percent.
Source: Houston Chronicle
Over the past two decades, Mexico has struggled with declining oil and natural gas production as well as declining production at its six aging refineries.
Sworn into office in December, Mexico’s new President Andres Lopez-Obrador, or AMLO, has pledged to reform Pemex and boost domestic production of crude oil, natural gas, gasoline and diesel. The AMLO administration has pledged to build a seventh refinery and has prioritized Pemex over foreign companies operating in Mexico.
With several refineries along the U.S. Gulf Coast configured to process heavy crude oil and with a lot of it taken off the market from sources such as Iran and Venezuela, many eyes are on Mexico where heavy crude makes up nearly 63 percent of its oil production of nearly 1.69 million barrels per day.
Mexico realized a slight crude oil production gain over the nearly 1.66 million barrels per day produced during the second quarter but a decline compared to the 1.74 million barrels per day during the third quarter of 2018.
Founded in 1938 when President Lazaro Cardenas nationalized Mexico’s oil industry, Pemex is headquartered in Mexico City and has more than 128,000 employees. The state-run oil company posted a $7.2 billion loss on $88.2 billion of revenue in 2018.
A leading supplier of heavy crude oil to the United States, Pemex owns a 50 percent stake in Shell’s Deer Park Refinery and owns at least 10 gasoline stations in the Houston area.
