Professional Documents
Culture Documents
Alfredo E. Guzmn1
Search and Discovery Article #10530 (2013)**
Posted October 21, 2013
*Adapted from oral presentation at AAPG 2013 International Conference & Exhibition, September 8-11, 2013
**AAPG2013 Serial rights given by author. For all other rights contact author directly.
1
Abstract
Mexico has five major hydrocarbons-producing provinces: two for oil, the Southeast and the TampicoMisantla basins; and three for gas, the
Sabinas, Burgos, and Veracruz basins. It has seven other provinces with potential: California, Gulf of Cortes, Chihuahua, Sierra Madre Oriental,
Sierra de Chiapas, Progreso Shelf, and the Deep Gulf of Mexico. Nevertheless, despite this natural-rich endowment, Mexico is the only country
in the world among those considered to be oil-rich that has consistently lost production and reserves in the last ten years.
Many reasons can be attributed for these results, and as this article proves, the least of them is the country`s endowment of oil and gas
resources. The explanation can be found in the petroleum history of Mexico. Since 1938 the country has had only one oil company responsible
for all of its upstream activities. Even though Pemex`s performance is comparable with that of most of the majors, it is impossible that all the
remnant potential of the whole country can be found and produced through only one company, no matter how large, wealthy, efficient,
technologically advanced, and successful it can be.
The understanding of the petroleum history of Mexico helps explain why the country is so unexplored and undeveloped. Significant historical
aspects/features/events have been:
the legal frame, that up to now has precluded third party-participation outside of Pemex`s in the exploration activities of Mexico;
the discovery of the supergiant onshore Mesozoic ChiapasTabasco and offshore Gulf of Campeche provinces in the 1970`s, that took
Pemex to concentrate all its resources in the development of the Southeast basin;
the historically allocated Capex for E&P, that has been totally insufficient to allow a systematic exploration and development of the
country`s potential; and
the exploration activities that have focused mostly in low-risk, extension opportunities with little expenditures allocated to test rank
wildcat ones.
The results of these policies are complete basins / provinces / plays with tremendous potential untested for all practical reasons. The history, as
it is being written today, allows for optimism as the country is being opened-up for third-party participation in the upstream, which will allow
for spectacular results.
Some background
Evolution of the E&P sector
Today and the future
Closing remarks
California
Basins
Chihuahua
Sabinas
Burgos
Chicontepec
6 producing basins
6 with potential.
No oil or gas yet
produced from the
deep GoM
Deep
Sierra
GoM
Madre
Oriental Tampico
Misantla
Veracruz
Sureste
Gas Oil
Yucatan
Shelf
Macuspana
Sierra de
Chiapas
GAS
(tcf)
Discovered
(OIP)
263.32
100%
279.47
100%
Produced
40.62
15.42%
71.59
25.61%
Reserves
(3P)
30.82
11.70%
63.23
22.62%
Remnant
191.88
72.87%
144.65
51.77%
A. Lajous
Poza Rica
1930
K & J fields
Tertiary
fields
Offshore
Campeche 1976
At the time
this model
was not
understood
Northern
Golden
Lane
prodn.
bano
Panuco
production
Tertiary
UK
Mid K
LK
1
Jr
Basement
seg
0
10
20 km
Ao
BOD
Cerro Azul-4
1916
260,000
Potrero del
Llano-4
1910
115,000
San Diego
de la Mar-3
1908
80,000
Juan
Casiano-7
1910
72,000
lamo-2
1920
45,000
Juan Casiano - 7
2 KM
San Diego de la Mar- 3 (Dos Bocas)
Production history
200
175
150
125
100
75
50
25
0
35
40
45
50
55
60
65
70
75
80
85
90
95
'00
Source Pemex
Poza Rica-2
discovery
well
Mxicos production
depended on the Poza
Rica field for 30 years
UJ sedimentario Model
Ogarrio
Cinco Presidentes
Snchez Magallanes
Source Pemex
Mesozoic oil
Chac
Tertiary oil
Tertiary gas
Cinco Presidentes
Cactus-Sitio Grande
Source Pemex
BBOE
72.5
140
120
100
80
60
40
20
1938
1940
1942
1944
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Cantarell
decline
N2 injection
3000
2500
2000
Offshore
Campeche
1500
1000
Chiapas-Tabasco
500
0
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
BBOE
72.5
45.8
43.5
16.0
4.79
6.33
What is next
The future is dependent on the approval of a proposed
Energy Reform Bill by the Mexican Congress.
Mxicos strategy is based on:
Deep Waters
Half a million km, Pemex calculates a potential of 30 BBOE
Reynosa
1
Cinturn
Subsalino
Tampico
Cinturn
Plegado
Perdido
Cordilleras
Mexicanas
Cinturn
Plegado Provincia
Poza Rica
Catemaco Salina del
Golfo
Veracruz
0
Cd. Carmen
Source: Pemex
Source: Pemex
WET
GAS
DRY
GAS
Chicontepec Paleocanyon
It holds 38% of all the reserves of Mxico. Its development
requires unconventional technologies as it is mostly tight oil
OOIP:
OGIP:
3P Reserves:
Cum
production:
81,492 MMB
39,756 MMMCF
10,715 MMB
27,636 MMMCF
230 MMBO
424 BCF
(13%)
(70%)
(0.2%)
(1.0%)
Thrust belt
reef
Source Pemex
16 0 0
14 0 0
Sabinas
contribution
12 0 0
10 0 0
800
180
160
140
120
100
80
60
600
40
20
0
77
82
87
92
97
'02
400
200
0
19 4 5
50
55
60
65
19 7 0
75
80
85
19 9 0
95
2000
05
1,000
MMcfd
1000
900
800
700
600
500
400
300
200
100
0
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Source Pemex
800
800
600
600
400
400
200
200
0 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 0
Source Pemex
The Future
Pemex expects to bring production to 3 MMBOD, but the output will
depend on the legal reform presented to Congress.
MBOD
3,000
Source Pemex
Closing Remarks
Thank you!