A Pemex fuel pump used for the presentation of a fuel additive in Oct. 11, 2018. Photo courtesy of Pemex
Oct. 29 (UPI) -- Mexican state oil company Pemex crude oil production fell to 1.83 million barrels per day in the third quarter ended September, compared with 1.87 million barrels per day in the preceding three months, keeping a trend toward a decline that has been going on for several years.
According to the latest company earnings release, its total crude oil production was 1.827 million barrels per day. The company also reported that its refineries of Salina Cruz and Cadereyta increased their crude oil processing capacity by 94,000 barrels per day and 30,000 barrels per day, respectively.
Pemex crude oil capacity is down from 1.866 million barrels per day in the second quarter and 1.9 million barrels per day in 2017.
The company's crude oil production has steadily declined in recent years. It was 2.5 million barrels back in 2013, dropping to 2.4 million barrels daily in 2014, further declining to 2.3 million barrels daily in 2015 and hitting 2.2 million barrels daily in 2016.
The company's light crude and extra-light crude production -- grades that command the higher prices as they yield more higher priced products like naphtha, used for gasoline -- have seen the biggest impact.
According to September data, light crude oil production is down to 517,000 barrels per day for that month, down from 864,000 barrels per day in 2014.
Similarly, extra light crude oil production in September was 215,000 barrels daily in that month. While it recovered from a dip of only 130,000 barrels per day in August, the lowest monthly output for this grade in at least three years, it is down from 299,000 barrels per day in 2014.
Pemex announced in late October plans to import four shipments, each of 350,000 barrels, of Bakken light crude oil, all for November delivery.
About 1.1 million barrels of Pemex current crude oil production corresponds to heavy crude oil. Heavy crude oil mostly yield the least expensive oil derived products like fuel oil. Refineries often cannot run heavy crude grades so mixing with lighter crude oil is needed.
Mexican officials started in 2013 an energy reform aimed at opening the country's hydrocarbon industry to foreign investment in a bid to increase crude oil production.
The future of the energy reform became uncertain after the election earlier this year Andres Manuel Lopez Obrador, who will take over as president at the start of December. He has long been a critic of the reform.
