• 5 minutes Trump will capitulate on the trade war
  • 7 minutes China 2019 - Orwell was 35 years out
  • 12 minutes Glory to Hong Kong
  • 15 minutes ABC of Brexit, economy wise, where to find sites, links to articles ?
  • 12 mins Is Eating Meat Worse Than Burning Oil?
  • 2 hours Canada Election Deadlock?
  • 3 hours China & Coal: China's 2019 coal imports set to rise more than 10%: analysts
  • 14 hours Clampdown on Chinese capital flight is shutting down their commercial construction in US
  • 23 hours Here's your favourite girl, Tom!
  • 1 day Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 2 hours Devaluing the Yuan
  • 8 mins Diplomatic immunity
  • 2 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 22 hours IMO 2020:
  • 13 hours Nigeria Demands $62B from Oil Majors
  • 1 day Deepwater GOM Project Claims Industry First
  • 12 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)

Mexico Welcomes OPEC Deal, Keeps 2017 Oil Output Target At 1.944 Million Bpd

Pemex oil storage

Mexico will keep its 2017 production target at 1.944 million barrels per day, as set out in state oil company Pemex’s plans, and lower than the expected 2.159 million bpd output for the end of this year, the country’s energy department said on Wednesday.

This reduction would help stabilize the crude oil market and is mostly the result of the natural decline of Mexico’s oil fields, which started in 2004, the department said.

Mexico, which is not a member of OPEC, believes that the cartel’s decision to cut production by 1.2 million bpd as of January would help to stabilize oil prices, which in turn could favor new investments in exploration and production, the energy department noted. The country also believes that the deal would boost global energy security.

Pemex’s business plan 2017-2021 that was unveiled last month includes conservative underlying assumptions for production of 1.944 million barrels per day, and a conservative oil price projection of US$42 per barrel.

Now it looks like the energy department will keep the 1.944 million bpd target, rather than the expected year-end production for 2016, in a sort of ‘contribution’ to the OPEC-non-OPEC production cuts.

On Wednesday, just before OPEC said it agreed to cut, Mexican finance minister Jose Antonio Meade had said that any OPEC cut would be positive for Mexico and its oil company Pemex.

“It was becoming clear that there could be an accord, I’m not sure that it was reached, I don’t know the details, but if it is the case then it’s good news,” Meade said in Mexico City, as quoted by Reuters.

This past September, minister Meade said that around US$5.4 billion in funds for Pemex would be eliminated from the proposed federal budget in 2017.

“Pemex is making the biggest contribution to the cuts,” Meade said about the company that will see an 18 percent reduction in funds and will make up some 41 percent of the US$12.83 billion slashed from the budget.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play