Latin American countries recorded a decline in oil production, which portends a new crisis on the Latin continent, where Mexico witnessed a decline in production by a decrease of 13%, in addition to Argentina stopping exports due to shortages, amid fears of rising prices.
Mexico recorded a decrease of 13%, contributing 31,200 barrels per day to private production in Mexico, and private sector crude oil production fell during September 2023, according to the latest figures published by Mexico’s regulatory body, the National Hydrocarbons Commission (CNH).
Private companies extracted a total of 104,700 barrels per day of crude oil, a monthly decrease of 4% when they reported 109,100 barrels per day, and in their monthly record, oil companies produced 7% less compared to September 2022.
Private companies account for 5% of national production, while the state-owned Petroleos Mexicanos, known as Pemex, contributes the remaining 95% of the 1.94 million barrels per day of crude oil and gas condensate produced by Mexico.
After the opening of the oil sector to private investment with the energy reforms approved by former President Enrique Pena Nieto, which were approved in December 2013, companies began to explore and produce hydrocarbons, but the arrival of Andres Manuel Lopez Obrador, to the presidency.
The Mexican president set a goal of providing 280 thousand barrels of oil per day to the private sector by the end of his term in September 2024. He even said that many of the put forward contracts can be legally canceled due to the lack of results, but companies will do it, “Fuss” and it will be superfluous.
