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Latino Daily News

Wednesday July 17, 2013

Mexico To Continue Relying on Fossil Fuels, Says PEMEX

Mexico To Continue Relying on Fossil Fuels, Says PEMEX

Photo: Oil drilling

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Fossil fuels will remain Mexico’s principal source of energy for years to come and the Aztec nation must get the most out of its hydrocarbon resources, the head of state-owned Petroleos Mexicanos said.

“Toward 2030, the expectations are that the country maintains hydrocarbons as its largest energy source,” CEO Emilio Lozoya said in Pemex’s latest Social Responsibility Report.

Mexico needs to “advance firmly” in the development and exploitation of deepwater oil reserves in the Gulf of Mexico and onshore deposits of shale gas and oil, the Pemex chief said.

The country currently meets 92 percent of its energy requirements with fossil fuels, while 7 percent comes from renewables and 1 percent from nuclear power, Lozoya said.

The government’s energy plan calls for reducing the share of fossil fuels to 65 percent by 2024.

Pemex, the world’s fifth-leading oil producer, has a monopoly on the production of hydrocarbons and refined products in Mexico.

Though production has recently stabilized and the country said last year it had achieved a reserve-replacement ratio of 100 percent, Mexico’s output has suffered from the natural decline of the once-super giant Cantarell offshore field and a lack of sufficient investment.

In addition to exploring deep-water areas in the Gulf of Mexico, Pemex also is looking to boost energy production by assessing its non-conventional reserves.