Oil & Gas Extraction in Mexico - Industry Market Research Report

Poor production: Industry revenue will decrease due to declines in crude oil prices

Oil & Gas Extraction in Mexico
The Oil and Gas Extraction industry in Mexico has experienced poor performance over the five years to 2019. Revenue is subject to the price of crude oil and natural gas, which is linked to global supply and demand conditions. Global crude oil and natural gas prices peaked in 2012 and fell slightly in both 2013 and 2014, before experiencing huge declines in 2015 and 2016. While prices have since recovered, they remain below recent peaks. As a result, industry revenue is anticipated to decrease during the current period. While poor prices have been the primary cause of the decline, the industry has also contended with declining crude oil production volumes, which have decreased due to declining reserves at the Cantarell offshore oil field. Over the five years to 2024, industry revenue is forecast to continue to decline, albeit at a slower rate compared with the previous period. With oil prices currently projected to be weak over the next five years, only strong production growth could support revenue growth.This industry comprises establishments dedicated to the extraction of liquid and gaseous hydrocarbons: crude oil and natural gas. The industry also includes establishments dedicated to obtain the condensates of the natural gas in gas fields. Establishments dedicated primarily to drilling of oil wells based on a contract; installation, maintenance and dismantling of drilling rigs; and the exclusive mining exploration or prospecting for oil and mining fields are excluded from this industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.