Mexico's oil production drops to its lowest level of the year in November

Mexico's production levels of liquid hydrocarbons and natural gas fell in November to the lowest recorded all year, and were well below the averages for last year. Official numbers published by regulator showed.

The country has missed its 1.8 million barrels per day crude oil and condensate production target twice in November. President Claudia Sheinbaum had promised to keep this goal for the six years of her term.

The numbers released late Monday show that Mexico produced 1.747 millions bpd liquid hydrocarbons in November.

1.488 billion bpd was crude oil, and 259,000 bpd was condensate. Condensate is a liquid hydrocarbon with a low density, low viscosity that comes to the surface usually along with natural gas.

Mexico produced the lowest amount of natural gas ever recorded, 3.531 billion cubic foot per day.

Pemex is the state-owned giant that produces 94% of all liquid hydrocarbons and 95% of natural gas in the country.

The production has dropped rapidly from the peak of 3.383 millions bpd in two decades. Older fields, particularly those located in the Gulf of Mexico have declined, and new discoveries have disappointed.

Mexico could be forced to import crude oil in the next decade if it does not invest significantly in exploration and production. This would be a previously unheard of change for the country.

Sheinbaum, the president, has not diverged much from Andres Manuel Lopez Obrador in her energy policy, except for her strong advocacy of renewable energy sources.

The scientist who won an award for her climate change work has not said much about what she will do to reduce dependence on fossil fuels, or how she plans on turning around the most indebted company in the world. (Reporting and editing by Jonathan Oatis; Stefanie Eschenbacher)

(source: Reuters)