The role of national content policies in the
transformation of the oil and gas industry in Mexico
September 2015
Crude Oil Investment vs. Production
4.0
23.4
25.0
3.4
3.5
3.0
20.0
3.0
2.4
2.5
15.0
2.0
10.0
10.0
1.5
1.0
5.0
3.1
0.5
0.0
-
Crude oil production (million barrels per day)
Investment in E&P (billion USD)
Energy Reform
Legislation
•
•
21 laws
26 regulations
State Enterprises
•
•
Institutions
Bolster
• CRE and CNH
Creation of
• ASEA, CENACE,
CENAGAS, FMP
Transformation of PEMEX
and CFE
Funds
Rounds
•
Round Zero, Round One
•
Development of National
Suppliers and Contractors *
Universal Electrice Service
Support to the National Industry
•
•
•
•
•
Methodology for Local Content *
Advising Council *
Strategic Program for the Training of Human Resources *
Modernization of the IMP *
Creations of 3 research and development centers*
3
Prospective Resources
*
*
*
Source: CNH, reservas y recursos prospectivos al 1° de enero de 2015
*
Production, reserves and prospective resources
(billions of barrels of oil equivalent)
Reserves
Prospective Resources
Cummulative
Prod.
1P
(90%)
2P
(50%)
3P
(10%)
Conventional
Cuencas del
Sureste
46.7
11.4
15.6
21.3
14.5
Tampico
Misantla*
7.4
1.1
6.2
12.8
2.4
34.9
Burgos*
2.6
0.3
0.5
0.8
3.2
10.8
Veracruz
0.9
0.2
0.2
0.3
1.4
0.6
Sabinas*
0.1
0.0
0.0
0.1
0.4
14.0
Deepwater
GoM*
0.0
0.1
0.5
2.2
0.0
Plataforma
de Yucatán
0.0
0.0
0.0
0.0
1.8
0.0
Total
57.7*
13.0
22.9
37.4
24.8
60.2
Basin
* Observed Recovey factor of 18% and an expected recovery factor of 30%
Source: CNH, reservas y recursos prospectivos al 1° de enero de 2015
Unconventional
Deep
water
27.8
112.8
27.8
Breakeven prices per project
*
*
*
Source:
Rystad
Energy
research
and
analysis
Future oil and gas production in Mexico
Oil production costs in Mexico
have been low, opening space
for oil rent capture.
Prospective Resources
Future oil production will have higher costs of production & as a result
there the space for capturing rent will reduce, so it is necessary to open
opportunities for technology development
Future oil & gas production in Mexico
 The success of the reform depends on the benefits for the
Mexican society, not only on increasing production.
 Both the automotive and aerospace industries in Mexico are
clear examples of the country´s capacity.
 Mexico can host a new industrial center for supplying goods
and services for the world industry, cutting costs for operators
in both sides of the Gulf of Mexico.
 It is in the best interest of the industry, national and
international, to materialize these benefits.
www.energia.gob.mx
http://ronda1.gob.mx