Mexico's oil and gas output drops to lowest level all year in November

Reuters12-24 22:39

MEXICO CITY, Dec 24 (Reuters) - Mexico's production of liquid hydrocarbon and natural gas in November fell to the lowest levels recorded all year and was well below last year's averages, official numbers published by the regulator showed.

November was also the second month the country missed the 1.8 million barrel-per-day production target for crude oil and condensate, which President Claudia Sheinbaum has vowed to maintain during her six-year term.

Mexico produced 1.747 million bpd of liquid hydrocarbon products in November, the numbers published late on Monday showed.

Of this, 1.488 million bpd consisted of crude oil and 259,000 bpd condensate, a very low-density, very low-viscosity liquid hydrocarbon product that usually comes to the surface with natural gas.

Mexico produced 3.531 billion cubic feet per day of natural gas, also the lowest level recorded all year.

State behemoth Pemex, which continues to struggle despite tens of billions of dollars in government support in recent years, produces 94% of the country's liquid hydrocarbon products and 95% of its natural gas.

Production has fallen swiftly from a height of 3.383 million bpd two decades ago; older fields, especially those in the Gulf of Mexico, declined and newer discoveries disappointed.

Reuters revealed earlier this year that without significant spending on exploration and production, Mexico may even have to import crude oil to feed its local refineries in the next decade, a once unheard-of change of direction for the exporter.

President Sheinbaum has so far diverged little from her predecessor and mentor, Andres Manuel Lopez Obrador, on energy matters - except for her vigorous advocacy of boosting renewable energy sources.

However, the scientist, who was decorated for her work on climate change, has said little about how she plans to divert dependence on fossil fuels or how to turn around the world's most indebted energy company.

(Reporting by Stefanie Eschenbacher; editing by Jonathan Oatis)

((Stefanie.Eschenbacher@thomsonreuters.com;))

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