Mexico's Pemex production of oil fell 5.6% in September, as gasoline and diesel production rose
According to the data released by Pemex late Tuesday, Mexico's state-owned energy company Pemex has produced 5.6% less crude and condensate in September compared to last year. This equates to an average of 1.65 million barrels a day (bpd).
The driller, who is heavily indebted, has been unable to increase production despite the cash injections and tax reductions since the previous administration. Many fields are depleting and new discoveries cannot compensate for this.
The seven local refineries processed crude oil at 949,772 barrels per day in September. However, this was almost 10% less than August's levels.
Pemex has recently increased the capacity of these refineries to 1.4m barrels per day.
The downward adjustment occurred despite the start-up of the new Olmeca refining plant in the port Dos Bocas and the billions of dollars invested elsewhere in upgrades.
Olmeca began operations mid-2024, with a capacity of 340,000 BPD. In September, it processed the highest amount to date, 194,874 BPD.
The total petroleum product production rose by 13% on an annual basis to 1.02 millions bpd. Gasoline output increased 27%, to 361,689bpd. Diesel output increased 52%, to 248,958bpd. Fuel oil fell 40%.
The government is prioritizing domestic refining, which has led to a 13% drop in crude oil exports year-on-year, to 570 499 bpd.
Imports of refined products dropped nearly 18% in September, with gasoline down 12% at 340,740 BPD and diesel down 61% at 59,493 BPD.
(source: Reuters)
