{"id":31822,"date":"2018-03-02T10:29:18","date_gmt":"2018-03-02T15:29:18","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31822"},"modified":"2018-03-02T10:29:18","modified_gmt":"2018-03-02T15:29:18","slug":"mexicos-oil-industry-continues-to-disintegrate-pemex-suffers-18-billion-loss","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31822","title":{"rendered":"MEXICO\u2019S OIL INDUSTRY CONTINUES TO DISINTEGRATE: PEMEX Suffers $18 Billion Loss"},"content":{"rendered":"
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MEXICO\u2019S OIL INDUSTRY CONTINUES TO DISINTEGRATE: PEMEX Suffers $18 Billion Loss<\/a><\/h3>\n

The situation in Mexico\u2019s oil industry continues to rapidly disintegrate as falling oil production and rising costs resulted in an $18 billion fourth-quarter loss for the state-run oil company, PEMEX.\u00a0 Part of the reason for the huge financial loss at PEMEX was the fall in the value of the Mexican Peso.\u00a0 While PEMEX\u2019s costs are in Pesos, it sells crude oil and purchases petroleum products in Dollars.\u00a0 Because the Mexican Peso declined 8% versus the Dollar, it put a huge strain on the company\u2019s year-end financials.<\/span><\/p>\n<\/header>\n

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Regardless, Mexico\u2019s oil production continues to fall due to the natural decline from resource depletion.\u00a0 However, as Mexico\u2019s oil production falls, its net oil exports have dropped significantly\u00a0as well.\u00a0 Thus, falling net oil imports translates to less revenue for PEMEX.\u00a0 According to BP\u2019s 2017 Statistical Review, Mexico\u2019s net oil exports hit a low of 587,000 barrels per day (bd) in 2016, down from 1,867,000 bd in 2004:<\/p>\n

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While Mexico\u2019s oil production declined from a peak in 2004, its domestic consumption has remained basically flat.\u00a0 Which means, Mexico\u2019s net oil exports have fallen by more than two-thirds in just 12 years.<\/strong>\u00a0 Unfortunately, it looks like Mexico\u2019s oil production will be down another 10% in 2017.<\/p>\n

The next chart from Mazamascience.com shows Mexico\u2019s net oil exports since 1960:<\/p>\n

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Mexico\u2019s total oil production is shown in the grey area, while consumption is displayed by the black line.\u00a0 The green area reveals the country\u2019s net oil exports.\u00a0 As we can see, Mexico\u2019s net oil exports peaked in 2004 at 1.86 million barrels per day (mbd) and are now likely below 0.5 mbd.\u00a0 Falling net oil exports are a death-knell to the Mexican government because it receives a lot of its revenue from PEMEX.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

MEXICO\u2019S OIL INDUSTRY CONTINUES TO DISINTEGRATE: PEMEX Suffers $18 Billion Loss The situation in Mexico\u2019s oil industry continues to rapidly disintegrate as falling oil production and rising costs resulted in an $18 billion fourth-quarter loss for the state-run oil company, PEMEX.\u00a0 Part of the reason for the huge financial loss at PEMEX was the fall […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[517,595,2174,12073],"class_list":["post-31822","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-mexico","tag-oil-production","tag-pemex","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31822"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31822\/revisions"}],"predecessor-version":[{"id":31823,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31822\/revisions\/31823"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}