Mexico oil production has steadily decreased since 2005 as a result of natural production declines from Cantarell and other large offshore fields, the U.S. Energy Information Agency said in a report released last week.
In 2013, the Cantarell offshore field produced 440,000 bbl/d of crude oil, which was nearly 80% below the peak production level of 2.1 million bbl/d reached in 2004.
Overall, Mexico produced an average of 2.5 million barrels per day (bbl/d) of crude during 2013 from a high in 2004 of 3.4 million barrels per day.
Cantarell accounted for 17% of Mexico’s total crude oil production in 2013, compared with 63% in 2004.
“Notably, crude oil production in 2013 was at its lowest since 1995 and continues to decline thus far in 2014,” according to the EIA report.
In December 2013, in an effort to address the declines of its domestic oil production, the Mexican government enacted constitutional reforms that ended the 75-year monopoly of Petroleós Mexicanos (PEMEX), the state-owned oil company.
Earnings from the oil industry (including taxes and direct payments from PEMEX) accounted for about 32% of total government revenues in 2013.
“Declines in oil production have a direct impact on the country’s economic output and on the government’s fiscal health, particularly as refined product consumption and import needs grow,” the EIA said.
Mexico’s total energy consumption in 2012 consisted mostly of oil (53%), followed by natural gas (36%).