Mexico’s state-owned oil company, Pemex, reported a significant 44% decline in crude oil exports in January, reaching just 530,000 barrels per day, marking the lowest export rate in decades. This figure represents a sharp contrast to the 811,000 barrels per day averaged throughout 2024, with January’s exports being the lowest since 1990.
Exports to the Americas, Pemex’s primary market, fell by 36% to approximately 321,000 barrels daily. The United States, the largest consumer of Pemex crude, has reportedly reduced its intake due to the high water content in the crude, which refiners have found problematic. This development is concerning, as Mexico is the second-largest crude supplier to Gulf Coast refineries after Canada.
It pointed to Pemex’s financial difficulties as a key factor, with the company struggling to settle roughly $20 billion in unpaid bills to suppliers for chemicals and equipment used to reduce water content in its crude. Pemex CEO Victor Rodriguez acknowledged the issue, labeling it temporary and linked to excessive salt content in the crude.
Despite these setbacks, Pemex is focused on boosting its oil and gas output, primarily through more active exploration in deepwater fields. The company aims to expand its reserves after years of decline in production, which has been largely attributed to depletion at aging fields and underwhelming results from new discoveries.
In January, Pemex’s production of crude oil and condensates averaged 1.62 million barrels per day, a 12% drop compared to January 2023. However, gasoline production saw a 23% increase during the same period.