Exploration and production snapshots: Mexico has been saved
Exploration and production snapshots: Mexico
Opening up for investment and growth
After decades of ups and downs, Mexico’s oil and gas (O&G) industry has the pieces and players in place for future growth: meaningful industry reforms, foreign investment and partnerships, promising offshore reserves, and enormous potential for shale oil and gas resources. If government and industry can work together on innovative efforts to convert resources into production and address infrastructure challenges, Mexico’s O&G industry may see brighter days ahead.
Americas exploration and production (E&P) snapshots
In this series, Americas E&P Snapshots, Deloitte profiles the region’s major countries, their hydrocarbon endowments, the historical context of the industry in each country, and the new opportunities that seem to be taking shape. Each country report concludes with considerations for the future and an assessment of the country’s attractiveness for new investment in the E&P sector.
The series includes profiles of the following countries:
How we got here: Highlights from historical oil and gas development
Mexico has historically been an important oil producer outside Organization of the Petroleum Exporting Countries. The first discovery of oil in Mexico was recorded in 1876 and its commercial production began by the early 20th century. Many foreign companies entered and explored Mexican oil fields, making it the second largest producer of crude oil by 1922. International companies, including Shell, Exxon, the Pearson family, Sinclair, and Gulf Oil, largely controlled oil production until 1938.1 Disputes between foreign oil companies and workers led to political interruption, ultimately creating Mexico’s own oil company Petróleos Mexicanos (PEMEX).2
PEMEX was established in 1938 and reported average oil production of 44 million barrels.3 The company’s oil output grew gradually and reached 177 million barrels by 1971. Oil production moved at a faster rate beginning in 1972, as most of PEMEX’s drilling operations were able to locate oil. New investment led to an increase in its reserves, which reached a high of 57 billion barrels in 1982.4
Post-1982, Mexico’s oil and gas (O&G) reserves started to decline, reaching an all-time low of 9.5 billion barrels of oil equivalent (BOE) in 2016—a drop of 60 percent from its reserves in 2000. Similarly, its combined production of crude oil and natural gas, which peaked in 2005, decreased by about one-third to reach 3.2 million BOE per day in 2016—its lowest level since 1990.5
Mexico’s O&G industry has been through its own booms and busts in the past few decades. During the 1980s, Mexico experienced high O&G reserves and consistent increase in its production. That growth continued until the mid-1990s. However, in 1998, authorities wanted to adopt international standards. An independent audit was ordered to reassess the country’s reserves. These agencies applied criteria and standards of the Society of Petroleum Engineers and the Society of Petroleum Evaluation Engineers, which were endorsed by the World Petroleum Congress and accepted by the United States and the international petroleum industry. Based on this new methodology, reserves were downgraded by more than 50 percent.6
During the mid-2000s, Mexico started to witness a decline in its O&G production. On the other hand, resource consumption had been constantly increasing due to industrial growth and demographic demand for energy. As a result, in 2016, Mexico’s domestic O&G consumption surpassed the country’s O&G production, thus making it a net importer for its energy requirements (figure 1).
Figure 1. O&G reserves, production, and consumption trends in Mexico
Sources: BP statistical review of world energy 2017, excludes shale reserves
Overview of PEMEX: Mexican Congress President Lázaro Cárdenas del Río established PEMEX in 1938. PEMEX is Mexico’s largest integrated, state-owned O&G company and the country’s eighth largest crude oil producer. The company is the world’s 18th largest O&G company based on 2015 statistics. The company’s activities span the entire O&G value chain, including production and sale of petrochemicals.
Currently, PEMEX operates through the following 11 business segments: exploration and production, refining, gas and basic petrochemicals, petrochemicals, cogeneration, drilling and services, logistics, ethylene, fertilizers, trading companies, and corporate and other subsidiary companies. In 2016, the company reported $52.2 billion in revenues and operating income of $20.5 billion. It is a major crude oil exporter with exports constituting 55.5 percent of its production and generating $17.5 billion in revenues in 2016.*
*PEMEX, Form 20-F, December 31, 2016
The O&G industry’s share in Mexico’s economy has fallen significantly over the past five years, after being a strong contributor to the growth of the country in the past
Historically, revenues from oil exports have been one of the main sources of income for the Mexican government. However, oil export revenues have consistently declined in the past few years. From a share of around 17 percent of the country’s total exports, at its peak in 2008, the share of oil exports decreased to 5 percent in 2016. According to Banco de Mexico, the Mexican oil export revenue in 2016 was $18.7 billion, falling 66 percent from 2011 levels of $56 billion (figure 2).7
Figure 2. Declining share of oil exports
Source: Banco de Mexico
Crude oil exports once considered a major contributor to Mexico’s gross domestic product (GDP), are now a negligible share. This might negatively impact the country’s growth prospects as oil revenues contributed one-third of the government’s spending budget.8 In 2016, oil export revenues contributed 2 percent to the Mexican GDP.9
Mexico has been one of the largest crude oil producers for many years. However, the country has been a net importer of refined fuel products. This is due to the fact that Mexican refineries are not equipped to process the heavy oil produced in the region, unlike the refineries in the southern United States. Hence, Mexico imports petroleum products from the United States to meet its domestic demand. As a result, the United States has been Mexico’s largest trade partner for decades. Mexico’s exports to the United States have been declining over the past few years and imports from the United States have been increasing. In 2016, Mexico’s imports surpassed its exports for the first time ever according to EIA data (figure 3).10
Mexico’s crude oil exports have been continuously declining; it exported just above 1 million barrels per day (bbl/d) in 2016. The United States reported its lowest import from Mexico in 2016 at 669,000 bbl/d, down from 1.7 million bbl/d in 2006.11 The dramatic increase in the United States’ oil production, the continuous decline in Mexico’s oil production, and rising domestic fuel demand have all led to an oil export crisis in Mexico. In fact, during 2014–2015, inward remittances from the United States surpassed crude oil revenues for the first time—and even doubled by December 2015 according to Forbes.12
Figure 3. Trade of crude oil and petroleum products (000s bbl/d)
State of refineries in Mexico. Mexico has six refineries and all of them are operated by PEMEX. As of 2016, their total refining capacity was 1.54 million bbl/d.13 However, Mexico’s refinery utilization rate remains below 80 percent, and, in fact, throughput in 2016 fell to its lowest level—below 1 million bbl/d. This is largely due to unplanned outages and the ongoing challenge to produce clean gasoline and distillate fuels from the available marginal barrel of heavy sour crude oil.
Main events and milestones
Key plays to watch
Continuous decline in production from Cantarell is being offset by the emergence of new prolific Ku-Maloob-Zaap (KMZ)
Mexico’s major oil-producing resources are based on the eastern coast of the Bay of Campeche in the Gulf of Mexico. These resources are located near the states of Veracruz, Tabasco, and Campeche. Almost 50 percent of the country’s oil production is sourced from two offshore fields—KMZ and Cantarell, based in the northeastern region of the Bay of Campeche. Most of the oil produced at KMZ and Cantarell is heavy and marketed as Maya blend. The United States is the biggest consumer and importer of this crude oil from Mexico, as it has some of the most sophisticated refineries capable of processing such heavy crude.32 For years, the United States has been importing this type of crude and exporting refined products back to Mexico.
The Cantarell basin was discovered in 1976 and its production began in 1979. The field was once considered the largest and most prolific oil field in the world. Production stagnated due to falling reservoir pressure and was later placed on nitrogen injection during 2000. Peak production was reported in 2004 at 2.1 million bbl/d, which was 63 percent of Mexico’s oil production. However, output has drastically declined since then. In 2016, the field produced an average of 216,000 bbl/d of crude oil—a 90 percent decline from its peak production. The total contribution of Cantarell to Mexican crude oil production fell from 63 percent in 2004 to a mere 10 percent in 2016 (figure 4).33
Figure 4. Crude oil production share by field
The KMZ field located adjacent to Cantarell has been the most productive oil field in Mexico’s recent history. The field has tripled its crude oil production from 2004 to 2016 at 900,000 bbl/d and contributes 40 percent of total crude oil production in Mexico.34 According to PEMEX, KMZ has yet to hit its peak production and expects to increase production further with the launch of the Ayatsil field in 2019.
Other minor offshore fields in Mexico are Abkatun-Pol-Chuc and Litoral de Tabasco located in the southwestern region of the Bay of Campeche, each producing 363,000 and 300,000 bbl/d, respectively.35 The onshore fields contribute approximately 25 percent of Mexico’s total crude oil production. The largest onshore oilfield is Samaria-Luna, located in the south of Mexico, which is producing about 145,000 bbl/d. According to PEMEX, the next potential onshore resource is Chicontepec, located northeast of Mexico City. Chicontepec was once estimated to produce 1 million bbl/d. However, it peaked at 69,000 bbl/d in 2012. Following energy reforms, some of the acreage was included in bidding rounds for auction.
Prospective shale reserves in the region could make the Mexican O&G market attractive for global players
According to the EIA, Mexico has enormous potential for shale gas and oil resources. These are expected to be stored in marine-deposited, source-rock shales distributed along the onshore Gulf of Mexico region. Technically recoverable shale resources are estimated at 545 trillion cubic feet (Tcf) of gas and 13.1 billion barrels of oil,36 potentially larger than Mexico’s proven conventional reserves. Five shale O&G basins have been identified, and the richest play appears to be the Eagle Ford shale of the Burgos basin. The Burgos basin extends from south Texas to northern Mexico and has estimated potentially recoverable resources of 343 Tcf of gas and 6.3 billion barrels of oil.37 The Sabinas basin toward south and east Mexico has an estimated 124 Tcf of gas resources within the Eagle Ford and La Casita shales.38 The remaining three basins (Tampico, Tuxpan, and Veracruz) are structurally more favorable and have an estimated 28 Tcf of gas and 6.8 billion barrels of oil of potential resources from their Cretaceous and Jurassic marine shales.39
The United States has been the only country to commercially produce shale in the last decade, and, given Mexico’s proximity to the United States, it may have a chance of opening up its horizons and accessing shale formation there. As mentioned above, the largest unconventional resources in Mexico are available in the Eagle Ford shale of the Burgos basin.41 The risked recoverable gas resource in Mexico’s Eagle Ford is pledged at 454 Tcf (10 percent more than that of Marcellus shale in the United States). This indicates the high potential of shale gas resources in Mexico. During bid rounds two through four, the Mexican government will auction a total of 14,406 sq. kilometers in the Burgos basin.42
Recent significant changes
O&G reforms in Mexico have the potential to convert attractive resources to production
Mexico’s consistent decline in O&G production and its inability to find new reserves led to the introduction of energy reforms in 2013. The government amended its constitutional reforms and opened the O&G industry for private and foreign investments. These reforms allowed Mexico to explore and extract O&G through contracts with private entities or with PEMEX. They also enabled access to the technology and financial resources of private companies, which led to the exploration of resources in Mexico’s deep waters and shale reserves. The legislation introduced new contract models for exploration and production, such as licenses, service contracts, profit sharing, and production-sharing agreements. It also created a sovereign oil fund operated by Mexico’s central bank.
Need for reforms. On December 20, 2013, Mexican President Enrique Peña Nieto signed the constitutional energy reforms. Two of the most important amendments made to the bill by the Senate
- The approval for revision in Transitional Article 4 to provide a contractual framework to govern the O&G production and development.
- Restructuring the boards of PEMEX and CFE (Comisión Federal de Electricidad); the new structure would include five independent members and five members from the federal government, including the secretary of energy who would lead the board. This revision also removed the representatives of the PEMEX union from the PEMEX board43
Eight months later, on August 11, 2014, the president signed into law the 21 component parts of a comprehensive energy reform. The law’s passage addressed issues important to both PEMEX and private investors. These issues can be categorized into two parts, namely 1) tax and financial obligations and 2) governance and political responsibilities. The law enforced flexible rates for royalties, reduction in O&G taxes, and cost deduction for each barrel of oil produced. The reform imposed responsibilities on government agencies to ensure commitment and transparency for implementing the new law. The government also created new and expanded old institutions such as Mexican Petroleum Fund, CNH (Comisión Nacional de Hidrocarburos), the national hydrocarbons commission, and CRE (Comisión Reguladora de Energía), the energy regulatory commission, which
In Round Zero, the government awarded contracts to PEMEX. PEMEX was awarded 83 percent of Mexico’s proven and probable oil reserves and 21 percent of total prospective resources. The allocation equals 20.6 billion BOE and covers an area of around 90,000 square kilometers (sq. kilometers). PEMEX would have access to 12.45 billion BOE of proven reserves. The following resources were allotted to develop:
- 3.01 billion BOE of prospective resources in the deepwater Perdido Fold belt;
- 1.82 billion BOE of prospective resources in the deepwater Holok and Han fields;
- 425 million BOE of proven and probable reserves in the onshore Burgos and Sabinas fields;
- 3.82 billion BOE of proven and probable reserves in the Ebano-Panuco-Faja de Oro-Chicontepec fields;
- Additional onshore proven and probable resources of 4.58 billion BOE;
- And 5.91 billion BOE of prospective resources in southeastern Veracruz and the Campeche states.44
From 2015 to 2016, Round One included auctions of onshore and offshore fields to global participants. In December 2014, Round One commenced and included five separate tenders for E&P rights in shallow-water reserves. The first tender saw 14 blocks of offshore shallow-water reserves in the southern gulf go up for auction, but only two blocks received successful bids. A joint venture between Sierra Oil & Gas, Premier Oil PLC, and Talos Energy LLC won both bids. The acquired blocks were off the coasts of the Veracruz and Tabasco states, holding around 600 million BOE. Later, Secretaría de Energía (SENER) modified its requirement to ensure more responses in the upcoming bidding rounds.
The second tender was held in September 2015 and was comparatively better received by the industry players. Five shallow-water blocks were up for auction and three were granted to different companies or consortiums via production-sharing contracts. The bids were won by both international and national companies including Eni S.p.A, Pan American Energy LLC, E&P Hidrocarburos y Servicios SA de CV, Fieldwood Energy LLC, and Petrobal SAPI de CV. This tender unexpectedly received the highest premium.
In the third phase that commenced in December 2015, all 25 licenses were awarded for smaller onshore fields. In total, 22 companies participated and 18 of them were Mexican entities. In the fourth auction held in December 2016, tenders were offered for 10 deepwater reserves. This time, SENER allowed PEMEX’s plan to work in partnership to develop its deepwater reserves in the Trion block and BHP Billiton Ltd. won the bid for $1.92 billion. Eight out of 10 blocks received bids either independently or in consortiums from many large players, such as Total SA, ExxonMobil, CNOOC, and BP. PEMEX won a bid in partnership with Chevron, and Sierra Oil & Gas won two bids.45
The implementation of energy reforms in Mexico resulted in the allocation of major resources in the deep waters of the Gulf of Mexico and shale resources in the Burgos basin to PEMEX. Since then, PEMEX has transformed from a decentralized public entity into a productive state-owned company. It remains wholly owned by the Mexican government and has an apparent corporate purpose of generating economic value and increasing the nation’s income while adhering to principles of equity and social and environmental responsibility.
Mexican authorities completed transparent and competitive bidding rounds for all phases of Round One. In total, 39 blocks were awarded out of the 55 blocks offered; 49 new E&P companies were established in Mexico, of which 25 are Mexican independents; and 12 producing fields are now being operated by companies other than PEMEX.46
After Round One, further changes have been proposed for Round Two: Learning from Round One, SENER made several changes in the terms of the bidding rounds. From Round Two, the Mexican government will provide 30-year production-sharing contracts with the possibility of a 10-year extension. To qualify for the auction, firms or consortiums have to document technical capability from at least three exploration and production projects between 2011 and 2015, or total investments of at least $1 billion on such developments. They also must be experienced in operating or being a financial partner in shallow-water or deepwater projects and meet minimum capital requirements of $1 billion or have assets worth at least $10 billion.
The first phase of Round Two was announced in July 2016 and was auctioned on June 19, 2017. Authorities awarded 10 out of 15 blocks in the Gulf of Mexico. The bidding day started slowly with participating companies showing interest in only the Tampico-Misantla and Veracruz areas. However, the bids started rolling once areas in the southeast basin were offered. Twenty individual companies and 16 consortia from 15 countries participated in Round 2.1. The Mexican subsidiary of Eni S.p.A. gained the most, acquiring three of the 10 awarded blocks. The Colombian entity Ecopetrol won two areas each in consortium with Petronas and PEMEX. Many foreign companies including Chevron, Repsol, Shell, and Total participated in the auction. The government considered the auction successful and has been satisfied with its outcome.47
According to one of Mexico’s energy department executives, Mexico is in a good position to take full advantage of its untapped deepwater potential going forward.48 With global O&G players getting into the act, energy reforms are attracting active participation, negating many concerns stemming from the slow response they had received initially. With conscious efforts from the authorities, each bidding round received positive responses from foreign investors who committed about $38 billion in the energy sector—86 percent of which has been in deepwater plays. Mexico has attracted investments from all regions: 37 percent from Asia Pacific, 36 percent from Europe and Eurasia, 13 percent from the United States, 12 percent from Mexican players, and 2 percent from South and Central American companies.49
After the announcement of energy reforms, PEMEX’s board of directors approved a proposal for corporate reorganization. As part of the reorganization, the company’s four existing subsidiaries were transformed into two new productive subsidiaries—PEMEX Exploration and Production and PEMEX Industrial Transformation. Additionally, five new subsidiaries were created—PEMEX Drilling and Services, PEMEX Logistics, PEMEX Cogeneration and Services, PEMEX Fertilizers, and PEMEX Ethylene. Each of these subsidiaries is a legal entity and can conduct business under its name. The subsidiaries are technically and operationally self-sufficient.
These reforms have provided PEMEX with various opportunities for strategic alliances and partnerships to develop and explore its vast allocated resources. However, PEMEX seems to be facing some challenges:
- PEMEX might lose the right to extract the reserves allocated through Round Zero if it fails to develop them in accordance with its development plans. These explorations would require huge capital investments and, due to declining oil prices, PEMEX has significantly reduced its future capital expenditure budget. The 2017 capital expenditure is budgeted around $5.7 billion, a 40 percent reduction from 2016.50 A capital investment of $1 billion has been allocated for exploration, which is less than 20 percent of its overall 2017 budget.
- According to industry analysts, PEMEX seems overstaffed and has accrued a large amount of debt during the high oil prices. The company owns hospitals and hotels for offshore workers, adding an extra burden to its balance sheet. Credit-rating agency Moody’s has issued a downgrade and, according to Fitch Ratings, PEMEX faces insolvency.51
PEMEX is moving forward to maximize its gains from the energy reforms
PEMEX has signed a partnership deal with BHP Billiton to develop its reserves based in the Trion block. BHP’s Mexico subsidiary, BHP Billiton Mexico, will contribute $789.6 million in exchange for a 60 percent participating interest in the Trion block and will act as the operator of the block.52 BHP’s Mexico arm will invest up to $1.9 billion before PEMEX makes any additional contributions. The Trion block was discovered by PEMEX in 2012 and is expected to have 3P reserves totaling 485 million barrels of crude oil equivalent. The joint operating agreement was signed on March 3, 2017, and PEMEX is expected to invest $600 million by the time initial production is achieved, which should be within the next six or seven years. The project’s development will require an investment of $11 billion. Once operational, the block is expected to produce more than 100,000 barrels of crude oil equivalent per day.53
In December 2016, PEMEX won an exploration contract for the field located in the Perdido Fold Belt in the Gulf of Mexico along with a consortium consisting of Chevron Energía, a subsidiary of Chevron Corporation, and INPEX Corporation. The corresponding exploration and production contract, joint operating agreement, and other relevant agreements were signed on February 28, 2017. PEMEX has received the green light for farm-outs in the Ayín and Batsil shallow-water fields in the Campeche basin. During the Round 2.1 auction, PEMEX was one of the active companies bidding for six blocks and won two blocks as part of a consortium comprising Columbia’s Ecopetrol and Germany’s DEA.54
- Partnership with BHP Billiton
- BHP to invest up to $1.9 billion
Perdido Fold Belt
- Joint venture with Chevron and Inpex
- Agreements signed on Feb. 2017
- Participated in bidding for six blocks
- Awarded two blocks in consortium with Ecopetrol and DEA
Looking to the future
Sophisticated techniques to convert resources into production. For Mexico to increase oil exports, efforts from all its O&G players will likely be required to effectively and efficiently convert its vast resources into production. The O&G infrastructure could play an important role in the future.
Addressing infrastructure challenges. In 1997, Mexico’s government allowed private investments in the midstream sector, albeit for natural gas pipelines only. It seemed to receive a lukewarm response from foreign investors. The natural gas and oil pipeline industry in Mexico is largely controlled by PEMEX and CFE. Due to recent reforms, a new agency called Centro Nacional de Control de Gas Natural (CENAGAS) was created. Its primary responsibility is to oversee and manage crude oil and natural gas transportation infrastructure in Mexico. The reforms directed PEMEX to gradually transfer its midstream assets to CENAGAS. On January 1, 2016, 9,168 kilometers of natural gas pipeline were transferred to CENAGAS.56 Eventually, the agency expects to manage a pipeline network of about 12,400 miles (20,000 km) by 2019.57 According to Georgina Kessel, Mexico’s former secretary of energy, the country needs to expand its midstream infrastructure to handle future demand created due to reforms. The expansions will be needed within the next 15 years to avoid pipeline bottlenecks, especially in southern Mexico, and to handle natural gas and oil products.58
The road ahead for Mexico’s upstream sector
1 Karim Meggaro, “The History of Mexican Oil, Part One – from Expropriation to Cantarell,” Mexico Business Publishing, October 13, 2011, http://www.oilandgasmexico.com/2011/10/13/the-history-of-mexican-oil-part-one-from-expropriation-to-cantarell/, accessed June 5, 2017.
3 US Library of Congress, Mexico Oil - Country Studies, http://countrystudies.us/mexico/78.htm, accessed June 8, 2017.
5 BP p.l.c., BP Statistical Review of World Energy, June 2017, https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html, accessed September 20, 2017.
6 PEMEX, Form 20-F, December 31, 1999, http://www.PEMEX.com/ri/reguladores/ReportesAnuales_SEC/1999_20F_i.pdf, accessed July 20, 2017.
7 Banco de Mexico, “Merchandise trade balance of Mexico,” http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?sector=1&accion=consultarCuadroAnalitico&idCuadro=CA176&locale=en, accessed June 20, 2017.
8 Michael O’Boyle and Luis Rojas, “Mexico Cuts Spending, Shelves Tainted Rail Project,” February 2, 2015, http://www.banderasnews.com/1502/nr-spending-cuts-shelve-rail-project.htm, accessed June 23, 2017.
9 Banco de Mexico, “Balance of payments,” http://www.banxico.org.mx/SieInternet/consultarDirectorioInternetAction.do?sector=1&accion=consultarCuadroAnalitico&idCuadro=CA176&locale=en, accessed June 23, 2017; The Economist Intelligence Unit, “Mexico Factsheet,” accessed June 23, 2017.
11 EIA, “US Imports from Mexico of Crude Oil and Petroleum Products,” https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTTIMUSMX2&f=A, accessed July 3, 2017.
12 Dolia Estevez, “Remittances Supersede Oil As Mexico’s Main Source Of Foreign Income,” Forbes, May 16, 2016, https://www.forbes.com/sites/doliaestevez/2016/05/16/remittances-supersede-oil-as-mexicos-main-source-of-foreign-income/#64f840251754, accessed July 5, 2017.
14 Karim Meggaro, “The History of Mexican Oil, Part One – from Expropriation to Cantarell.”
19 Tim L. Merrill and Ramón Miró, “Mexico: A Country Study,” 1996, http://countrystudies.us/mexico/78.htm, accessed June 12, 2017.
20 Karim Meggaro, “The History of Mexican Oil, Part Two: The Rise and Fall of Cantarell.”
21 Offshore Technology, “Ku-Maloob-Zaap Field,” http://www.offshore-technology.com/projects/kumaloobzaap/, accessed June 16, 2017.
22 US Library of Congress, Mexico Oil - Country Studies, http://countrystudies.us/mexico/78.htm, accessed June 8, 2017.
24 PEMEX, Form 20-F, December 31, 1999.
25 BP p.l.c., BP Statistical Review of World Energy, June 2017.
26 Banco de Mexico, “Merchandise trade balance of Mexico.”
27 US Library of Congress, “Mexico: Constitutional Amendment on Energy,” February 12, 2014, http://www.loc.gov/law/foreign-news/article/mexico-constitutional-amendment-on-energy/, accessed June 15, 2017.
28 “Mexico's Round Zero and Round One oil projects,” Reuters, August 14, 2014, http://in.reuters.com/article/mexico-reforms-energy-idINL2N0QJ2Z620140813, accessed July 17, 2017.
29 Richard H.K. Vietor and Haviland Sheldahl-Thomason, “Mexico’s Energy Reform,” Harvard Business School, January 23, 2017, https://www.hks.harvard.edu/hepg/Papers/2017/Mexican%20Energy%20Reform%20Draft%201.23.pdf, accessed July 17, 2017.
31 Melissa Sustaita, “Mexico’s Round 2.1 awards 10 blocks,” OE & AtComedia, June 19, 2017, http://www.oedigital.com/component/k2/item/15617-mexico-s-round-2-1-begins, accessed July 19, 2017.
32 Matt Smith, “Market Currents: Oil and gas flows between the US and Mexico,” Fuelfix, January 27, 2017, http://fuelfix.com/blog/2017/01/27/market-currents-oil-and-gas-flows-between-the-u-s-and-mexico/, accessed July 10, 2017.
33 The National Hydrocarbons Commission (CNH), Mexico, “National oil and gas production,” https://portal.cnih.cnh.gob.mx/estadisticas.php, accessed May 25, 2017.
34 Eurasia Review, “Mexico Energy Profile: Among Largest Source Of US Oil Imports – Analysis,” December 10, 2016, http://www.eurasiareview.com/10122016-mexico-energy-profile-among-largest-source-of-us-oil-imports-analysis/, accessed December 13, 2017.
36 EIA, “Technically Recoverable Shale Oil and Shale Gas Resources: Mexico,” September 2015, https://www.eia.gov/analysis/studies/worldshalegas/pdf/Mexico_2013.pdf, accessed July 10, 2017.
39 Ibid; Vello Kuuskraa, et al., “World Shale Gas Resources: An Initial Assessment of 14 Regions Outside the United States,” April 2011, http://www.adv-res.com/pdf/ARI%20EIA%20Intl%20Gas%20Shale%20APR%202011.pdf, accessed July 10, 2017; EIA, “Review of Emerging Resources: US Shale Gas and Shale Oil Plays,” July 2011,https://www.eia.gov/analysis/studies/usshalegas/pdf/usshaleplays.pdf, accessed July 14, 2017.
40 Mercer Capital, “Quick Facts: Bakken,” September 2016, http://mercercapital.com/assets/Mercer-Capital_Quick-Facts_Bakken.pdf, accessed July 14, 2017.
41 EIA, “Technically Recoverable Shale Oil and Shale Gas Resources: Mexico.”
42 Dr. Randy B. Machemehl, P.E., et al., “Preparing for Increased Petroleum Prospecting in Tamaulipas, Mexico,” August 2016, http://library.ctr.utexas.edu/ctr-publications/iac/petroleum_prospecting_tamaulipas_20160713.pdf, accessed July 17, 2017.
43 Mayer Brown, “Mexican Senate Passes Energy Bill,” December 11, 2013, https://www.mayerbrown.com/Mexican-Senate-Passes-Energy-Bill-12-11-2013/, accessed July 17, 2017.
44 “Mexico's Round Zero and Round One oil projects,” Reuters.
45 Richard H.K. Vietor and Haviland Sheldahl-Thomason, “Mexico’s Energy Reform,” Harvard Business School, January 23, 2017, https://www.hks.harvard.edu/hepg/Papers/2017/Mexican%20Energy%20Reform%20Draft%201.23.pdf, accessed July 17, 2017.
46 Audrey Leon, “Mexico’s big opportunity,” OE & AtComedia, May 1, 2017, http://www.oedigital.com/subsea/item/15257-mexico-s-big-opportunity, accessed July 19, 2017.
47 Melissa Sustaita, “Mexico’s Round 2.1 awards 10 blocks,” OE & AtComedia, June 19, 2017, http://www.oedigital.com/component/k2/item/15617-mexico-s-round-2-1-begins, accessed July 19, 2017.
48 “Mexico’s Emerging Oil Opportunities Are Great,”
49 Emily Patsy, “OTC 2017: Mexico’s Deep Water Is Open For Business,” Hart Energy, May 2, 2017, http://www.epmag.com/otc-2017-mexicos-deep-water-open-business-1554486#p=full, accessed July 19, 2017.
50 PEMEX, Form 20-F, 2016, (used average exchange rate of March 2017 of Ps.19.28 = $1 http://www.pemex.com/ri/reguladores/ReportesAnuales_SEC/2016_20F_i.pdf, accessed on June 10, 2017.
51 Lorne Matalon, “Mexico’s Energy Reform And Pemex: Both Face Challenges As US Energy Sector Watches,” Fronteras, March 1, 2017, http://www.fronterasdesk.org/content/10567/mexicos-energy-reform-and-pemex-both-face-challenges-us-energy-sector-watches, accessed July 21, 2017.
52 PEMEX, Form 6-K, February 2017, https://www.sec.gov/Archives/edgar/data/932782/000119312517035287/d307590d6k.htm, accessed August 12, 2017.
53 “Pemex y BHP Billiton sign agreement to develop deep-water Trion Block,” PEMEX press release, March 03, 2017 http://www.pemex.com/en/press_room/press_releases/Paginas/2017-020-national.aspx, accessed August 16, 2017.
54 PEMEX, Form 20-F, December 31, 2016; PEMEX press release, “Pemex y BHP Billiton sign agreement to develop deep-water Trion Block,” March 3, 2017, http://www.PEMEX.com/en/press_room/press_releases/Paginas/2017-020-national.aspx, accessed July 21, 2017; PEMEX, “Investor Presentation,” March 2017, http://www.PEMEX.com/en/investors/investor-tools/Presentaciones%20Archivos/Investor%20presentation_170323.pdf, accessed July 21, 2017; Melissa Sustaita, “Mexico’s Round 2.1 awards 10 blocks,” OE & AtComedia, June 19, 2017, http://www.oedigital.com/component/k2/item/15617-mexico-s-round-2-1-begins, accessed July 21, 2017.
55 EIA, “Technically Recoverable Shale Oil and Shale Gas Resources: An Assessment of 137 Shale Formations in 41 Countries Outside the United States,”
56 PEMEX, Form 20-F, 2016, (used average exchange rate of March 2017 of Ps.19.28 = $1).
57 Natalie Schachar and David Alire Garcia, “As Pemex pulls back, Mexico sees future profit from gas pipelines,” Reuters, July 27, 2016, http://www.reuters.com/article/us-mexico-energy-cenagas-idUSKCN1062EE, accessed July 24, 2017.
58 Paula Dittrick, “Mexico infrastructure seen as inadequate for future demand,” Oil & Gas Journal, January 25, 2015, http://www.ogj.com/articles/2015/01/mexico-infrastructure-seen-as-inadequate-for-future-demand.html, accessed July 25, 2017.