popular articles

Debate on the exploitation of unconventional hydrocarbons in Mexico

Experts are calling for a serious debate on the exploitation of unconventional resources in Mexico, believing that neglecting this opportunity would be a major strategic error.
Fracking hydrocarbures non conventionnels Mexique

Please share:

Mexico has considerable unconventional hydrocarbon resources, estimated at around 113 billion barrels of oil equivalent, according to the National Hydrocarbon Commission (CNH). Of these resources, 57% are located in unconventional deposits, mostly unexploited. Hydraulic fracturing (fracking) technology has evolved considerably, making the exploitation of these resources more viable. Yet under the current administration, this approach has been largely neglected.

Ignored Potential

Under President Andrés Manuel López Obrador, Petróleos Mexicanos (Pemex) has focused on shallow-water and onshore deposits. This strategy has ruled out exploration of unconventional and deepwater deposits, which are considered riskier and slow to mature. The administration has explicitly rejected the use of fracking, despite the enormous potential reserves.
Enrique Silva Pérez, Partner at Procura Regulatory Consulting, believes that refusing to discuss fracking is a strategic error. “It’s essential to assess the potential of these resources to fuel the country’s growth with its own resources,” he declares.

The need for investment and long-term planning

Independent analyst Fluvio Ruíz Alarcón points out that Mexico is heavily dependent on foreign gas, with a dependency of over 90%. He notes that Pemex’s low production is mainly for its own consumption, and that a lack of investment and long-term planning is hampering the efficient exploitation of gas resources.
Ruíz Alarcón adds that the deficient infrastructure prevents Pemex from processing the gas properly, leading to significant wastage. “At one point, the country was burning up to 13% of its production, a figure that has now been reduced to around 6%, but is still three times higher than the 2% norm,” he points out.

Towards a New Oil Era

To meet these challenges, it is proposed to create an independent subsidiary within Pemex, dedicated exclusively to gas, with specific financial incentives. At present, gas production is subject to the same tax regime as crude oil production, which is not adapted to the distinct economic realities of these markets.
Despite a reduction in the special fee paid by Pemex to the government, from 65% to 30%, the company continues to suffer financial losses. Appropriate measures and targeted investment are therefore crucial to fully exploit the potential of unconventional hydrocarbons in Mexico.
Reassessing Mexico’s energy strategy is essential to reduce dependence on gas imports and maximize the use of domestic resources. The adoption of proven fracking technologies could play a crucial role in this paradigm shift, boosting the country’s economic and energy growth.

Register free of charge for uninterrupted access.

Publicite

Recently published in

Donald Trump's announcement to boost oil production to combat inflation and fill U.S. strategic reserves barely moves markets, as Brent prices continue their recent decline.
A persistent oil spill in the Niger Delta, attributed to acts of sabotage, raises major concerns for Nigeria's oil industry, highlighting the sector's security and environmental challenges.
A persistent oil spill in the Niger Delta, attributed to acts of sabotage, raises major concerns for Nigeria's oil industry, highlighting the sector's security and environmental challenges.
In Nigeria, an overturned tanker exploded as a crowd attempted to collect fuel. Local authorities report at least 70 deaths in a context marked by rising gasoline prices and economic hardship.
In Nigeria, an overturned tanker exploded as a crowd attempted to collect fuel. Local authorities report at least 70 deaths in a context marked by rising gasoline prices and economic hardship.
Kimbell Royalty Partners completes a $230 million oil and gas acquisition
Kimbell Royalty Partners completes a $230 million oil and gas acquisition
Unexpected Arrest of the Former Minister of Oil in Niger, Mahaman Moustapha Barké
Sudden resignation of the leader of the Libyan oil company
Sudden resignation of the leader of the Libyan oil company
BP formalizes 4,700 internal layoffs and 3,000 among subcontractors. Disappointing results and a renewed focus on hydrocarbons shape this move. The market observes these choices, influenced by economic and political imperatives.
BP formalizes 4,700 internal layoffs and 3,000 among subcontractors. Disappointing results and a renewed focus on hydrocarbons shape this move. The market observes these choices, influenced by economic and political imperatives.
Sri Lanka confirms a historic investment with Sinopec. A new refining facility will strengthen the country's energy balance.
Sri Lanka confirms a historic investment with Sinopec. A new refining facility will strengthen the country's energy balance.
The drilling of the Katmai West #2 well by Talos Energy in the Gulf of Mexico revealed 400 feet of hydrocarbon reserves, with production estimated at 20,000 barrels per day, strengthening the regional energy strategy.
Following a premature announcement of an oil discovery in Lake Kivu, Rwanda clarified that the work is still in an exploratory phase, with partners being sought to move forward.
Following a premature announcement of an oil discovery in Lake Kivu, Rwanda clarified that the work is still in an exploratory phase, with partners being sought to move forward.
US crude oil reserves dropped unexpectedly, exceeding initial forecasts, due to sustained refinery activity and a trade imbalance between imports and exports.
US crude oil reserves dropped unexpectedly, exceeding initial forecasts, due to sustained refinery activity and a trade imbalance between imports and exports.
Oil and gas production from the Baleine field in Côte d’Ivoire has surpassed expectations, reaching 85,000 barrels per day thanks to the progress of its first two phases, according to the government.
Oil and gas production from the Baleine field in Côte d’Ivoire has surpassed expectations, reaching 85,000 barrels per day thanks to the progress of its first two phases, according to the government.
Global oil demand reaches 102.9 million barrels per day in 2024, driven by a cold winter. US sanctions on Russia and Iran weigh on supply prospects for 2025.
PetroNor sold 881,192 barrels of crude oil at a price of $72.8 per barrel on the PNGF Sud block. This major transaction generates $64 million, highlighting the importance of investments in the Congolese oil sector.
PetroNor sold 881,192 barrels of crude oil at a price of $72.8 per barrel on the PNGF Sud block. This major transaction generates $64 million, highlighting the importance of investments in the Congolese oil sector.
Africa Oil increases its stake to 18% in block 3B/4B off the coast of South Africa. This partnership with TotalEnergies and QatarEnergy marks a crucial step for oil exploration in the Orange Basin.
Africa Oil increases its stake to 18% in block 3B/4B off the coast of South Africa. This partnership with TotalEnergies and QatarEnergy marks a crucial step for oil exploration in the Orange Basin.
Iraq and BP finalize an ambitious agreement to rehabilitate four oil fields in Kirkuk and exploit flared gas, aiming to boost energy production and reduce dependence on Iranian gas.
Iraq and BP finalize an ambitious agreement to rehabilitate four oil fields in Kirkuk and exploit flared gas, aiming to boost energy production and reduce dependence on Iranian gas.
Chevron’s $53 billion acquisition of Hess Corporation remains blocked by contractual disputes and ExxonMobil's opposition. An arbitration decision in September will determine the future of this strategic transaction.
After diplomatic tensions, Algeria and Niger strengthen energy cooperation. Algerian company Sonatrach plans to build a refinery and a petrochemical complex in the city of Dosso, Niger.
After diplomatic tensions, Algeria and Niger strengthen energy cooperation. Algerian company Sonatrach plans to build a refinery and a petrochemical complex in the city of Dosso, Niger.
According to the KOMO Q1 2025 report by KAPSARC, India will dominate global oil demand growth with an additional 220 Kb/d, surpassing China and reaffirming Asia's central role in the energy market.
According to the KOMO Q1 2025 report by KAPSARC, India will dominate global oil demand growth with an additional 220 Kb/d, surpassing China and reaffirming Asia's central role in the energy market.
Cameroon welcomes a new strategic agreement between Tower Resources and Prime Global Energies, mobilizing 15 million dollars to develop the NJOM-3 well, a key offshore oil project planned for 2025.
Cameroon welcomes a new strategic agreement between Tower Resources and Prime Global Energies, mobilizing 15 million dollars to develop the NJOM-3 well, a key offshore oil project planned for 2025.
The offshore oil field Sangomar, operational since June 2024, has surpassed its annual forecasts with 16.9 million barrels produced, strengthening Senegal's strategic energy position.
Nigeria is relying on Seplat Energy to triple its crude oil production to 120,000 barrels per day by June 2025, leveraging strategic assets and unused wells.
Nigeria is relying on Seplat Energy to triple its crude oil production to 120,000 barrels per day by June 2025, leveraging strategic assets and unused wells.
Crude oil stockpiles in the United States decreased by one million barrels last week, a figure lower than expected, due to a drop in exports despite intensified refining activities.
Crude oil stockpiles in the United States decreased by one million barrels last week, a figure lower than expected, due to a drop in exports despite intensified refining activities.
After eight years of inactivity, the Warri refinery in Nigeria resumes operations. This marks a significant step in the country's efforts to rehabilitate its energy infrastructure and strengthen domestic fuel supply.
After eight years of inactivity, the Warri refinery in Nigeria resumes operations. This marks a significant step in the country's efforts to rehabilitate its energy infrastructure and strengthen domestic fuel supply.

Advertising