Pemex comes out of its shell

Journal Article · Mon Apr 10 04:00:00 EST 1978 · Fortune; (United States)

OSTI ID:6521337

Sandeman, H

An abundance of oil and natural gas became evident in Mexico in 1972, more than a year before OPEC increased oil prices. In Tabasco State in S.E. Mexico, where some oil had been produced from shallow wells for years, a drilling crew from the state oil monopoly, Petroleos Mexicanos (Pemex), probed down to 11,500 feet and made one of the great strikes of modern times, rivaling the North Slope and perhaps even the North Sea. Pemex has now formulated a five-year plan in which it has opted for the middle road--vigorous expansion that is still short of all-out exploitation. By the end of 1982, Pemex should have doubled its production of petroleum (in which the company lumps together all liquid hydrocarbons and natural-gas equivalents) to 2.2 million barrels a day, of which half is destined for export. Oil exports, plus sales of natural gas and petrochemicals, are expected to bring in $8.2 billion a year, plenty of money to service the country's foreign debt (already around $30 billion) and to pay for a considerable acceleration in economic development. This rate of production will put no strain at all on reserves. Mexico's proven petroleum reserves are placed at 14.7 billion barrels, almost triple the figure of six years ago. Its potential reserves are many times that large. On present plans, Mexico will rank among the top dozen oil exporters in 1982. (MCW)

• OSTI ID: 6521337
• Journal Information: Fortune; (United States), Journal Name: Fortune; (United States) Vol. 97:7; ISSN FORTA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020300 -- Petroleum-- Drilling & Production
03 NATURAL GAS
030300 -- Natural Gas-- Drilling
Production
& Processing
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
294003 -- Energy Planning & Policy-- Natural Gas
CAPITAL
CHARGES
ECONOMIC DEVELOPMENT
ENERGY SOURCES
EXPLOITATION
EXPORTS
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
LATIN AMERICA
MANPOWER
MARKET
MEXICO
MONOPOLIES
NATURAL GAS
NORTH AMERICA
PETROLEUM
PETROLEUM INDUSTRY
RESERVES
RESOURCES
TRADE