Mexico Oil and Gas Upstream Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The market is segmented by Location (Onshore and Offshore)
ABOUT THIS REPORT
Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
Need a report that reflects how COVID-19 has impacted this market and its growth?
Mexico oil and gas upstream market is expected to grow at a CAGR of more than 1% during the forecast period. Sustained growth in the consumption of natural gas, petroleum, petrochemical products, foreign investments, and modern developments of oil and gas exploration and production activities are the major drivers for the oil and gas upstream sector in Mexico. However, the high volatility of oil prices is expected to hinder the market growth during the forecast period.
Most of Mexico’s production is from the offshore fields, and therefore, the offshore segment is likely to dominate the market during the forecast period.
The innovation of new technologies allows unconventional drilling that enhances oil & gas production. New business models and services are rapidly evolving and assisting to reduce the cost of operations in upstream oil & gas, which in turn promoting the market growth is expected to provide opportunities in the market in the coming years.
Scope of the report
Mexico oil and gas upstream market report includes:
Report scope can be customized per your requirements. Click here.
Key Market Trends
Offshore Segment to Dominate the Market
Mexico has significant oil and gas reserves. In 2018, Mexico’s oil production was 1.8 million barrels per day. The potential hydrocarbon resources in the country are located in shallow water, deep water, and onshore fields. There are 183 blocks, made up of exploration of 109 blocks, extraction of 60 blocks, and Pemex farm-outs of 14 blocks, with total estimated prospective resources of 19,945 million barrels of oil equivalent (MMBOE).
In the offshore segment, most crude oil reserves are found in the Campeche basin (Gulf of Mexico). The deep-water area of the Gulf is home to significant undeveloped hydrocarbon resources. The oil production in the Gulf of Mexico has an average of 104,000 barrels per day added annually.
In 2019, Chevron Corp. has sanctioned the Anchor project in deep-water United States Gulf of Mexico. The planned facility has a design capacity of 75,000 barrels of crude oil and 28 million cubic feet of natural gas per day. The total potentially recoverable oil-equivalent resources for Anchor are estimated to exceed 440 million barrels.
Hence, offshore oilfields are expected to dominate the market during the forecast period.
To understand key trends, Download Sample Report
Foreign Investments to Drive the Market
Mexico’s oil and gas market has generated a wave of foreign investment in the upstream sector. Committed investment in exploration and production in the country surpassed USD 161 billion in early 2018.
Foreign investments permit international energy companies to operate in Mexico and include provisions for competitive production sharing contracts and licenses to increase the demand for technology and technical expertise for the development of upstream deepwater and shale oil and gas fields.
Royal Dutch Shell Plc, Jaguar, Total SA, Eni, Sierra Oil and Gas, Sun God Energy, Repsol SA, Qatar Petroleum, and Premier Oil PLC have secured blocks to explore and produce oil and gas from shallow water, deep-water, onshore and unconventional resources. Notably, deep-water has received the most investment in 2018.
Australia’s BHP has started exploration drilling in Trion, the deep-water offshore block in the Gulf, in late 2018.
Hence, with an increase in foreign investments, the Mexico oil and gas upstream market is expected to be driven during the forecast period.
To understand geography trends, Download Sample Report.
Mexico oil and gas upstream market is moderately consolidated. Some of the key players in this market include Chevron Corporation, Royal Dutch Shell Plc, Total SA, Repsol SA, and Premier Oil PLC.