Mexico Oil and Gas Upstream Market Outlook 2031
The Mexico Oil and Gas Upstream Market size was valued at USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031 expanding at a CAGR of 2.1 % during the forecast period, 2023 – 2031. The growth of the market is attributed to increasing usage of natural gas, petrochemical products, and petroleum.
The oil and gas upstream process is known for the exploration & development operations such as recovering, researching, and producing crude oil and natural gas. Mexico's oil and gas reserves are extensive. The exploration sector entails obtaining a license and drilling approval from owners of onshore or offshore properties having suspected of containing oil or gas, as well as executing the requisite geological and geophysical investigations to search for economic oil or gas accumulations.
Mexico produced 1.8 million barrels per day of oil in 2018. In shallow water, deep sea, and onshore fields, the country's prospective hydrocarbon resources can be found. There are 183 blocks, with total estimated potential resources of 19,945 million barrels of oil equivalent, divided into 109 blocks for exploration, 60 blocks for extraction, and 14 blocks for Pemex farm-outs.
Royal Dutch Shell began producing from the Kaikias deep water field in the Gulf of Mexico in 2018. It drilled three wells in phase one, which were finished in 2018, and phase two was about to begin in the next few years.
The COVID-19 pandemic adversely affected the market due to the sharp drop in commodity demand as well as the ramp-up of the production in several countries have erected oil rigs and declared significant reduction in production. The shortage of liquid storage capacity further makes an already precarious scenario more complicated. Mexico is dependent on Texas for the natural gas, and therefore natural gas prices in the country are highly associated with natural gas prices in the United States.
Mexico Oil and Gas Upstream Market Trends, Drivers, Restraints, and Opportunities
- Modern innovations in production activities and foreign investments are key factors driving the market in the coming years.
- New technology and technical expertise allow for unconventional drilling, which boosts the market expansion.
- Significant volatility of oil prices is likely to stifle market growth during the forecast period.
- Strict government’s regulations for operator safety and product usage over specific thresholds is projected to hamper the market.
- Availability of advanced services and business models help in the reduction of operational costs. This is a major factor that eventually creates lucrative opportunities for the market expansion.
Scope of Mexico Oil and Gas Upstream Market Report
The report on the Mexico oil and gas upstream market includes an assessment of the market, trends, segments, and country markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Oil and Gas Upstream Market - Mexico Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Locations (Offshore and Onshore)
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Country
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Mexico
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Total SA; Repsol SA; Premier Oil PLC; Chevron Corporation; and Royal Dutch Shell Plc
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Mexico Oil and Gas Upstream Market Segment Insights
On the basis of locations, the Mexico oil and gas upstream market is bifurcated into offshore and onshore. The offshore segment is projected to expand at a considerable CAGR during the forecast period as they provide for more affordable access to oil resources. The Campeche basin currently holds the majority of crude oil reserves in the offshore portion (Gulf of Mexico).
An average of 104,000 barrels per day are added to the Gulf of Mexico's oil output each year. The Gulf's deep-water sector contains large undeveloped hydrocarbon resources. On the other hand, the onshore segment is anticipated to account for a major market share during the forecast period as production managers can easily turn on and off rigs to respond to market conditions.
The wells are connected by carbon steel tubes, which transport the oil and gas to a production and processing plant where they are chemically and thermally processed. Moreover, the wells are clustered together in a field in onshore drilling facilities, ranging from a half-acre per well for heavy crude oil to 80 acres per well for natural gas.
Segments
The Mexico oil and gas upstream market has been segmented on the basis of
Locations
Country
Key Players
Competitive Landscape
Key players competing in the Mexico oil and gas upstream market are Total SA; Repsol SA; Premier Oil PLC; Chevron Corporation; and Royal Dutch Shell Plc. Foreign investments help multinational energy companies to expand in Mexico, and they contain provisions for difficult production sharing contracts and licenses, which are likely to boost need for technology and technical skills as upstream deep water and shale oil and gas areas progress.
As a result, the Mexico oil and gas upstream market is likely to be driven throughout the forecast period, owing to a rise in foreign investments.
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