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AnalysisAnalysis

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Total Mexican crude consumption lagcoe.com/registration 2,500 2,000 1,500 1,000

Thousand bbl/d 500 0 198019841988199219962000200420082012

Mexico’s total energy consumption in 2010 relied mostly on oil (56%), followed by natural gas (29%).

Source: U.S. Energy Information Administration.

declines in oil reserves, production and exports. At the same time, with the growth of the Mexican population, the country’s consumption of refned oil products and natural gas has increased signifcantly, causing Mexico to rely heavily on imports from the United States and other

LAGCOE, one of the countries. Although Mexico has considerable natural gas

Fueling world’s pioneer oil resources, its production has been relatively limited. Since and gas expositions, crude oil sales represent one of Mexico’s main sources of

Global showcases cutting-edge onshore and offshore income, equaling nearly a third of the national budget,

Energy

Pemex has never focused on natural gas development. innovations.

Furthermore, partly because of the private investment

Fueling global energy

Solutions solutions for nearly restrictions, Mexico’s refning capacity is capped, with only 60 years in Lafayette, six refneries and a total refning capacity of 1.54 million

Louisiana, LAGCOE is bbl/d, all operated by Pemex. As a result of these factors, located in the gateway

Mexico, despite its status as one of the world’s largest crude to America’s Energy oil exporters, is a net importer of refned petroleum prod- Corridor.

ucts and an importer of natural gas. If these trends are not

Come to LAGCOE for reversed, the country is expected to become a net importer business solutions and of crude oil by 2020. enjoy award-winning

Mexico does not lack for resources. As of January 1, cuisine, music and 2013 hospitality in one of the 2011, Mexico had 10.4 billion bbl of proven oil reserves

October 22-24 most culturally inspiring and an estimated 46 billion bbl in 3P (proven, probable areas in the U.S.

Lafayette, Louisiana USA and possible) reserves, mainly located in the deep waters of the Gulf of Mexico. According to a recent US Energy

Information Administration report, Mexico also has the

GLOBAL world’s sixth-largest technically recoverable shale gas

COLLABORATION resources (see reference).

LOCAL

In an effort to uncap this potential and halt the decline

RESOURCES in production and exports, Mexico’s previous presidential

LAGCOE.COM administration proposed comprehensive energy reform in 2008. However, that reform proposal was signifcantly diluted before being approved by Mexico’s Congress. The fnal 2008 energy reform established the legal framework for upstream service contracts with private companies for the development of mature felds that allowed for some

OE | August 2013 oedigital.com 22 021_OE0813_Analysis.indd 22 7/22/13 12:18 AM