Business · Energy & Commodities · 1 day ago
Pemex Could Need Nearly $110 Billion to Meet Mexico’s Oil and Gas Targets
Mexico relies on imports for about two-thirds of its energy, with the United States supplying most of its needs.
The country has only 2.4 days of gas storage, leaving it exposed to supply disruptions and price swings.
The government is seeking to increase domestic oil and gas production and refining.
An assessment by the International Institute for Sustainable Development says meeting the production targets could require about $160 billion, including nearly $110 billion from state-owned Pemex.
It says some fields may be uncommercial and could lose $17.4 billion over 15 years, and the targets might still not be met on time.
The assessment argues that investment in renewable energy, power grids and storage could provide a more resilient alternative and reduce imports.
Mexico must decide how to direct public investment, while plans to expand oil exploration in the Gulf of Mexico have also raised environmental concerns.
Mexico relies on imports for two-thirds of its energy consumption, while having only 2.4 days of gas storage capacity.
An assessment by the International Institute for Sustainable Development says meeting the government’s oil and gas production targets would require about $160 billion in capital spending, including nearly $110 billion from Pemex.
The assessment says some fields would be uncommercial and could generate net losses of $17.4 billion over 15 years.
It argues Mexico should instead invest in renewable energy, electricity grids, transmission infrastructure and energy storage.
The assessment also warns that oil and gas targets may not be met within the planned timeframe.
- Who
- Pemex and the Mexican government are central to the production targets. The International Institute for Sustainable Development assessed their potential costs.
- What
- Meeting Mexico’s oil and gas production targets could require nearly $110 billion from Pemex, within about $160 billion in total capital spending.
- When
- The article was published on October 10, 2026. The assessment is described as recent.
- Where
- Mexico.
- Why
- The government is seeking to increase domestic energy output and reduce energy vulnerabilities. The assessment argues that investment in renewables and supporting infrastructure would be a better use of limited resources.
Mexican government
International Institute for Sustainable Development
Investment priorities
Mexican government
The government is working to increase national energy output, especially oil and gas production and refining.
International Institute for Sustainable Development
The IISD argues that Mexico should prioritize renewable energy, grids, transmission infrastructure and storage.
Production targets
Mexican government
The government is pursuing oil and gas production targets.
International Institute for Sustainable Development
The IISD says the targets would be costly, could produce limited energy security gains and may not be met on schedule.
Domestic oil and gas production targets would come at very high costs and produce limited energy security gains
This is an effort from the Mexican administration to increase oil barrels, but at what cost
Investing billions in uncommercial oil and gas fields risks large losses without meeting the government’s production targets, while investing in domestic renewable power, grids, and storage can cut imports, strengthen sovereignty, and attract private capital
Petrobras and Pemex forged a two-year partnership to explore mature and deepwater oilfields in the Gulf of Mexico.
OilPrice published an article about the IISD assessment of Mexico’s oil and gas production targets.
- Pemex investment
- Nearly $110 billion
- Total capital expenditure
- Around $160 billion
- Potential net losses
- $17.4 billion over 15 years
- Mexico’s gas storage capacity
- 2.4 days
- Mexico’s energy consumption
- Two-thirds dependent on oil and gas imports
Sources
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