Mexico’s oil output hit a record low in July at 1.605 million barrels per day (mmbbl/d), with both national oil company Pemex and private oil producer’s production down from June’s figures, according to Reuters.
Whereas there was no significant decrease for the private oil companies, Pemex’s July output marks the lowest amount of crude extracted since November 1979 when the producer pumped 1.615 mmbbl/d. Since the beginning of this year, Mexico’s crude oil production has dipped nearly 7%.
Pemex, produced just 1.548 mmbbl/d in July while private oil companies produced 57,000 bbl/d, representing a decrease in production compared with June figures.
Pemex’s production decline has been steady since reaching its zenith of 3.4 mmbbl/d in 2004. This steady decline can be attributed to an oil price rout earlier this year, budget cuts, as well as a two-month negotiated output cut with the Organization of the Petroleum Exporting Countries and its allies (OPEC+).
Pemex has been struggling to reach the lofty heights of 2004 ever since a landmark 2013-2014 energy reform that for the first time allowed private producers to operate oil fields on their own.