IISD: Pemex needs $110 billion for Mexico’s production plans — OilPrice

State oil company Pemex will need nearly $110 billion to meet Mexico’s government targets for oil and gas production, the International Institute for Sustainable Development (IISD) has calculated. Total capital expenditures to implement these plans could amount to about $160 billion, OilPrice reports.

Risk of losses and failure to meet targets

According to IISD estimates, developing fields that are not commercially attractive could result in net losses of $17.4 billion over 15 years. The institute also believes that even such investment volumes do not guarantee that the planned production targets will be reached within the set timeframe.

Mexico depends on oil and gas imports to cover about two-thirds of its energy consumption. At the same time, the country has gas reserves for only 2.4 days, making it vulnerable to supply disruptions and market fluctuations.

More current news is available on the UA.News Telegram channel Telegram.

An alternative in renewable energy

IISD proposes directing public funds toward modernizing and expanding power grids, developing distributed solar generation, other renewable energy sources, and energy storage systems. Report co-author Luis Martinez said such investments could reduce energy imports, strengthen the country’s energy independence, and attract private capital.

Environmentalists have also voiced concerns over Pemex’s two-year partnership with Brazil’s Petrobras, concluded in June. It provides for the exploration of mature and deepwater oil fields in the Gulf of Mexico. Representatives of environmental organizations warned about the risks of oil spills, a potential impact on decarbonization commitments, and coastal communities.