Mexico Oil And Gas Market Growth & Trends
The Mexico oil and gas market size is expected to reach USD 243.50 billion by 2030, registering a CAGR of 3.4% over the forecast period, according to a new report by Grand View Research, Inc. Mexico’s demand for oil & gas is anticipated to increase as a result of government subsidies and the liberalization of fuel prices. Additionally, it is anticipated that cooperation between Mexico and European nations for natural gas trading and the natural gas shortage experienced by European nations due to the conflict in Russia and Ukraine will further influence the oil and gas market growth.
Due to the adoption of horizontal drilling and hydraulic fracturing techniques by oil and gas companies in Mexico, natural gas and crude oil production is increasing.The transportation and power generation industries are the main final consumers of crude oil and natural gas. There are reputable local and international players in the Mexican oil and gas market. Due to the intense competition in the market, the majority of players are concentrating on how to set themselves apart from the competition. For product manufacturers, creating extremely effective sales channels is yet another crucial element. The oil and gas market in Mexico exhibits a direct sales channel.
Due to the high demand-supply gap for crude oil and natural gas as well as the current political unrest between Russia and Ukraine, prices for both commodities are skyrocketing. The Mexican government has implemented price controls on the sales of diesel, gasoline, liquefied petroleum gas, and natural gas intended for domestic use despite the skyrocketing cost of crude oil.
In terms of revenue, upstream segment dominated the market with a share of 62.60% in 2021. According to the U.S. Energy Information Administration (EIA), Mexico has enormous potential for shale gas and oil resources. These are expected to be stored in marine-deposited, source-rock shales distributed along the onshore Gulf of Mexico region. These factors are expected to boost the demand in the upstream segment over the forecast period.
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Mexico Oil And Gas Market Report Highlights
In 2022, the upstream emerged as the largest segment and accounted for a revenue share of 62.75% owing to its enhanced efficiency, easy installation, and availability of three-phase variations
In February 2022, the geopolitical unrest in Eastern Europe with Russia Ukraine conflict has hampered manufacturing operations and disrupted supply chains
The oil and gas refining industry in Mexico, which is underdeveloped, is anticipated to expand at a CAGR of 4.1% over the forecast period. There are currently 6 refineries, and Mexico is dependent on refineries located in the United States. The state-owned oil and gas company Pemex will receive funding from the Mexican government in order to increase refining capacity. Such programs may aid in the growth of the downstream industry.
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