Mexico - opportunistic cutter
Mexico will probably end up losing more oil supply in 2017 than it pledged to cut
Mexico is in the midst of a major energy-sector overhaul that the country hopes will significantly boost its oil production. So why did it agree in Vienna to cut oil supply? Mexico had everything to gain and nothing to lose by hopping aboard. Its pledge was significant too-a 100,000-barrels-a-day drop in the early part of 2017. Aldo Flores-Quiroga, Mexico's deputy secretary for energy, was there to add some credibility to the commitment. The cuts-and more-were already coming, and not voluntarily. Mexico's Opec-endorsed production target is part of an output drop that was already announced in November. This expects the country's average annual production to fall by 215,000 b/d in 2017, to 1.9
Also in this section
23 April 2026
The addition of an oil pipeline to the Power of Siberia 2 gas project could ensure deliveries of Russian oil to China, materially shorten logistics lines between West Siberia and final customers, and—amid disruption in the Strait of Hormuz—offer a land-based export route that reduces exposure to maritime chokepoints
23 April 2026
There is a clear push to bolster exports to Asia amid uncertainty around its North American neighbour, but there are limits to the benefits from the energy crisis
23 April 2026
Shell made the play-opening discovery in Namibia’s Orange basin back in 2022, but its next well could decide whether the project can actually be commercialised
22 April 2026
The failure of OMV Petrom’s keenly watched exploration campaign at Bulgaria’s Han Asparuh block highlights the Black Sea’s uneven track record, despite major successes like Neptun Deep and Sakarya
