Mexico’s state-run oil company Petroleos Mexicanos, or Pemex, reported year-on-year production was down 2.9%, but posted a huge $4.6 billion third-quarter loss due to sagging exports and domestic sales, Kallanish Energy learns.
Pemex reported a $4.6 billion loss on $18.4 billion of revenue during the third quarter, 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 22% year-on-year while domestic sales of gasoline, diesel and other products fell by roughly 20%.
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, Mexican president Andres Lopez-Obrador has pledged to reform Pemex and boost domestic production of crude oil, natural gas, gasoline and diesel.
His 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 now off the market from sources such as Iran and Venezuela, many users are eyeing Mexico, where heavy crude comprises nearly 63% of its oil production of nearly 1.69 million barrels per day (Mmbpd).
The latest quarterly production was down from 1.74 Mmbpd produced during the third quarter of 2018.
This post appeared first on Kallanish Energy News.