Connect with us

Politics

Mexico’s Pemex announces major discovery that could boost industry

Published

on


Screen Shot 2018 10 10 at 8.58.01 AM
Google
Maps; Business Insider


  • Mexico’s state-owned oil producer Pemex announced Tuesday
    that it had discovered roughly 180 million barrels of oil in the
    Gulf of Mexico.
  • The so-called proven, probable, and possible (3P) reserves
    could support Mexico’s oil output, which has been in decline
    since 2004. 
  • Mexico would need between $7 billion and $10
    billion in capital, including investments in oil rigs and
    pipelines to develop the newly announced discovery, Pemex
    said. 

Pemex, Mexico’s state-owned oil producer, said on Tuesday that it
had discovered about 180 million barrels of oil offshore.

The reserves could boost Mexico’s oil output, which has been in
decline since 2004.

They were found in the Manik well, roughly 52 miles
offshore in the Gulf of Mexico, and the Mulach well, about 11
miles offshore.
  

Pemex CEO Carlos Treviño
said in a statement
that the reserves are proven, probable,
and possible, or 3P, meaning there’s a high degree of certainty
that the oil can be extracted. The company will need between $7
billion and $10 billion in capital, including investments in oil
rigs and pipelines, to develop the newly announced discovery and
others found nearby in recent years, according to
Reuters

The offshore fields combined could increase Mexico’s
production by up to 210 million barrels of oil and 350 million
cubic feet of gas per day, Pemex said. 



Screen Shot 2018 10 10 at 8.38.04 AM


Mexico’s
oil production has been in decline since 2004.


IEA


Mexico joined the International Energy Agency, an industry
watchdog, earlier this year and was the first Latin American
country to do so. 

“The country’s energy sector is in a period of profound
change, catalysed by comprehensive energy reforms the government
has been enacting since 2013,” the IEA said of Mexico. These
reforms include
ending Pemex’s monopoly
and attracting new players into the
oil industry.

Pemex’s discovery was announced just as the IEA urged larger oil
producers to open the taps on output. Fatih Birol, the agency’s
head,
said at a conference
in London on Tuesday that
US sanctions on Iran
and shrinking production from Venezuela
could tighten the market even further. 

The cost of
brent crude oil
, the international benchmark, has surged
27% this year as OPEC members and their allies cut production to
boost prices following the 2014 crash. Brent surged to a
four-year high of nearly $86 per barrel last week.

Now read: 

Continue Reading
Advertisement Find your dream job

Trending