APLA ’14: Mexico has potential to more than double oil production

Joseph Chang

10-Nov-2014

APLA ’14: Mexico has potential to more than double oil productionRIO DE JANEIRO (ICIS)–Mexico has the potential to more than double oil production from a current 2.5m bbl/day, to 5.5-5.6m bbl/day, the former Energy Secretary of Mexico said on Monday.

“That would put Mexico in the top 5-7 producing nations in the world. That is our future with this historic decision of energy reform that has not yet been assimilated,” said Jordy Herrera Flores, the former Energy Secretary of Mexico and current consultant.

Herrera spoke to delegates at the Latin America Petrochemical Association (APLA) conference.

“This is a new area of prosperity and growth for Mexico,” he added.

With additional investment of $10bn in exploration and production, Mexico can reach 3m bbl/day of oil production “relatively quickly”, said Herrera.

Plus there is more than 2bn bbl/day of potential production from tapping unconventional resources such as shale oil/gas and deepwater hydrocarbons. It could cost another $20bn to develop these resources, he noted.

In deepwater in the Gulf of Mexico, the US produces 1.5m bbl/day of oil while Mexico has not yet started drilling, Herrera pointed out.

“With reform, Mexico should attract investment,” said Herrera.

“Mexico’s energy resources are much richer than we take for granted,” he added.

In terms of years of reserves, Mexico currently has enough oil and gas for 40 years of consumption, a figure that could more than double to 80-100 years with proper investment, said Herrera.

He called the Ethylene XXI project in Mexico to produce polyethylene (PE) from natural gas liquids “the most important project in Mexico in 40 years”.

Mexico has a current $20bn/year trade deficit in petrochemicals which has grown in the past 30-40 years because of lack of investment, he noted.

Further upstream and in other products, Mexico currently imports 1.4bn cubic feet/day of natural gas (20% of demand), 400,000 bbl/day of gasoline (50% of demand) and 80,000 bbl/day of liquefied petroleum gas (30% of demand), according to Herrera.

The APLA conference starts on Sunday and runs through Tuesday.

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?