Travel

Why is Pemex in trouble Mexico?

By: Greg ZobelUpdated: February 18, 2021

Categories

Site Statistics

  • Questions
    94,481
  • Answers
    1,984,101
  • Categories
    21
  • Last Updated
    June 26, 2022
Financial status
Mexico exports crude oil, but imports more expensive gasoline. National Hydrocarbons Commission, created in 2008 by the Mexican Congress to increase regulatory oversight, has increased scrutiny over Pemex in 2012. As of July 2019, Pemex is the most indebted oil company in the world.

In this manner, what is Pemex and how does it affect the Mexican economy?

Pemex and the Mexican Economy. Pemex is a state-owned company that manages all of Mexico's oil and gas sector. The energy reforms opened up the oil sector to foreign and private investment in the form of joint ventures.

Beside above, is Mexico oil rich?

Oil Reserves in Mexico
Mexico holds 9,711,000,000 barrels of proven oil reserves as of 2016, ranking 17th in the world and accounting for about 0.6% of the world's total oil reserves of 1,650,585,140,000 barrels. Mexico has proven reserves equivalent to 13.0 times its annual consumption.

Who is the owner of Pemex?

Federal government of Mexico

Why is Pemex in debt?

“What has brought Pemex to bankruptcy is, amid other things, its terrible pension system.” Pemex negotiated most of its pensions with Mexico's oil workers' union years ago, when oil prices were higher and life expectancy was lower.

Related

How much debt does Pemex have?

Pemex has a debt of $42.5 billion, including $24 billion in off-balance-sheet debt. The state-owned company pays out over 60% of its revenue in royalties and taxes.

How big is Pemex?

Pemex
Revenue US$85.410 billion (2018)
Operating income US$18.666 billion (2018)
Net income –US$9.166 billion (2018)
Total assets US$105.431 billion (2018)
Total equity –US$74.146 billion (2018)

Where does Mexico get its gasoline?

Mexico currently gets 60% of its power from gas, and 65% of the country's total gas usage is supplied by the U.S. In Mexico, this overreliance on the U.S. is becoming more of a concern since the U.S. seeks to export huge amounts of gas (via LNG) to countries all over the world.

Does Mexico have petroleum?

Mexico has the seventeenth largest oil reserves in the world, and it is the fourth largest oil producer in the Western Hemisphere behind the United States, Canada and Venezuela.

What country buys most of Mexico's oil?

In 1995 the oil sector generated slightly more than 10 percent of Mexico's export income (down from almost 80 percent in 1982). The United States bought 54 percent of Mexico's crude oil exports in 1991, Western Europe bought 25 percent, and Japan bought 11 percent.

Does Mexico have oil reserves?

Oil Reserves in Mexico
Mexico holds 9,711,000,000 barrels of proven oil reserves as of 2016, ranking 17th in the world and accounting for about 0.6% of the world's total oil reserves of 1,650,585,140,000 barrels. Mexico has proven reserves equivalent to 13.0 times its annual consumption.

Are there jungles and deserts in Mexico?

Geographically speaking – Mexico is varied. It certainly has its share of coast boasting over 9,000 kilometres of coastline and its share of arid desert regions, but it also offers lush tropical jungles, mangrove forests, volcanic plateaus and canyons.

Is Mexico a developed or developing country?

As of 2016, Mexico is not quite a developed country, even though it beats the majority of its peers in the developing world on most economic and quality of life metrics. As of 2016, Mexico's per capita GDP is $17,276.

How many oil refineries does Mexico have?

Petróleos Mexicanos (Pemex), Mexico's national oil company, owns and operates the country's six petroleum refineries, which have a combined atmospheric crude oil distillation capacity of about 1.6 million b/d.

When did Mexico discover oil?

Oil. Although explorers drilled Mexico's first petroleum well in 1869, oil was not discovered until after the turn of the twentieth century. Commercial production of crude oil began in 1901.

Why has Mexico's oil production declined since 2004?

“The reason why Mexico has seen an output decline since 2004 is not because of lack of potential, it is because it stopped exploring,” Juan Carlos Zepeda, chief of Mexico's energy regulator National Hydrocarbons Commission (CNH), said at the energy conference.

Where are the oil fields in Mexico?

Most of Mexico's production decline involves one enormous oil field in the Gulf of Mexico. From 1979 to 2007, Mexico produced most of its oil from the supergiant Cantarell Field, which used to be the second-biggest oil field in the world by production.