Pemex would need investment of nearly $110 billion to lift its output to the levels set by Mexico's production targets. The estimate points to the gap between the company's current production and what the national targets demand of it. It comes as a recent assessment weighs Mexico's energy insecurity and how the country should respond to a heavy reliance on imported fuel.
Imports of oil and gas meet two-thirds of the country's energy consumption, with domestic sources covering the remainder. Most of its energy needs, meanwhile, are met by its neighbor to the north. That reliance leaves Mexico in a vulnerable position, and it sits in contrast to the abundant fossil fuel resources the country holds within its own borders.
According to the assessment, building up more domestic oil and gas production and refining capacity is not the answer to Mexico's energy insecurity. The conclusion pushes back against the idea that the country should simply exploit its own producing power to the fullest. It also separates two questions: what it would cost Pemex to reach the national output targets, and whether reaching them would actually reduce the country's import reliance.
For engineers, operators and suppliers, the assessment reframes the investment picture in Mexico. The estimate attached to the output targets signals that any push to raise production would hinge on capital commitments at Pemex of a scale that would shape project planning and procurement. At the same time, the conclusion that expanded domestic capacity is not the cure for import dependence suggests the policy debate will extend beyond upstream and refining budgets.
Source: Oilprice
