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The Mexico Oil and Gas Market size is forecast to increase by USD 35.58 billion, at a CAGR of 3.46% between 2023 and 2028. The report includes historic market data from 2018-2022. The market is witnessing a growing demand for advancements in drilling technology, growing investments in modernizing refineries and privatization of Mexico's oil and gas industry.
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Advancements in drilling technology are an emerging trend shaping market growth. Advanced drilling techniques, such as horizontal drilling and extended-reach drilling, allow for greater access to hydrocarbon reserves, including unconventional resources like shale and tight formations. This prompts increased exploration efforts, leading to a higher demand for drilling equipment and associated technologies. Technological advancements have enabled drilling in deepwater and ultra-deepwater environments, where substantial reserves are found. This requires specialized drilling rigs, subsea equipment, and wellhead systems, all of which contribute to the upstream equipment market.
In addition, eco-friendly drilling technologies, including closed-loop systems and reduced emissions equipment, align with environmental regulations and sustainability goals. Advancements in drilling mud systems and drilling fluids, including high-performance additives and environmentally friendly formulations, contribute to drilling efficiency and wellbore integrity. Thus, the advancements in drilling technology will boost the growth of the market during the forecast period.
The upstream segment is estimated to witness significant growth during the forecast period. The upstream segment in the oil and gas market in Mexico refers to the exploration, development, and production of crude oil and natural gas. It includes various operations such as seismic surveys, drilling activities, well construction, and production and transportation. The growth in the segment can be attributed to factors such as increasing demand, advancements in technology, and a favorable government policy.
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Further, the power demand in Mexico is steadily increasing. Urbanization and industrial development have accelerated power demand in Mexico. Rapid urbanization results in increased electricity consumption for residential and commercial buildings, while industrialization has driven up power use in manufacturing and production processes. For instance, the total energy consumption increased by around 2.5% in 2022 to 188 Mtoe. The increase in the power demand in Mexico increased exploration activities which in turn drives the growth of the upstream segment. Moreover, the technological advancements in the upstream sector, such as using remote sensing and data integration to refine exploratory strategies, full-wavefield inversion to generate more accurate models of complex geological structures, and others help improve the operational efficiency and turn, propel the growth of the upstream segment in the market during the forecast period.
The availability of adequate resource potential significantly propels market growth in Mexico. Renowned as one of the largest oil producers globally and the fourth largest in the Americas, Mexico boasts substantial reserves, both onshore and offshore. As of January 2023, proven oil reserves reached around 6.0 billion barrels, encompassing crude oil, lease condensate, natural gas liquids, and oil sands. Geologically enriched with diverse hydrocarbon reserves, including conventional and unconventional resources like shale gas and deepwater reserves, Mexico's wealth is distributed across various formations and basins.
Moreover, energy sector reforms, allowing private investment in exploration and operations, foster resource development. These reforms, unlocking Mexico's power sector for domestic and international entities, create opportunities in exploration, production, and hydrocarbon project investment. Hence, these factors collectively drive market growth throughout the forecast period.
Increasing the transition to cleaner energy sources is a significant challenge hindering market development. The transition to cleaner energy, such as solar energy and thermal energy, represents a significant challenge for the market. As the trend shifts toward cleaner power sources in Mexico, there is an overall reduction in the demand for fossil fuels, including oil and natural gas. This can lead to decreased exploration, production, and drilling activities, which will negatively impact the demand in Mexico. The uncertainty surrounding the future of the oil and gas industry, driven by the energy transition, can discourage investments in exploration projects. Companies may hesitate to commit resources to projects with uncertain long-term viability.
Also, the transition to cleaner energy requires significant investments in new technologies and infrastructure, such as renewable energy facilities and electric vehicle charging networks. This can divert resources and attention away from traditional oil and gas operations. Furthermore, advances in energy efficiency and energy-saving technologies can reduce overall energy consumption, further dampening demand for the Mexico oil and gas market. Therefore, such factors hinder the growth of the market during the forecast period.
The market forecasting research report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Chevron Corp. - The company offers oil and gas operations which include hydrocarbon exploration, production, refining, marketing, and transportation of crude oil and natural gases.
The research report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Mexico oil and gas market is intricately shaped by various factors and entities. The Secretariat of Energy (SENER) oversees the sector, dealing with challenges like quarantine rules affecting domestic gasoline consumption. PEMEX, the state-owned hydrocarbon company, faces challenges such as a lack of private investments amid government policies. Energy reforms have attempted to break the monopoly of PEMEX, encouraging foreign investment in exploration and development projects, particularly in the onshore shale reserves and the Coastal Gulf of Mexico region. Notable players like Lukoil and Petronas engage in key projects like the Bacalar-1 exploration well in the Cuenca Salina Sureste Basin.
Additionally, the industry also sees significant trends, such as the rising demand for natural gas, LNG imports, and the liberalization of fuel prices. As conflicts in Russia and Ukraine impact global oil prices and oversupply concerns persist, the market navigates challenges in the value chain, from decommissioning and geological surveys to seismic imaging, supply chain disruptions, and the efficient utilization of processing facilities, refineries, and petrochemical plants. The Deer Park refinery, a crucial element in the midstream sector, adds a pivotal component to Mexico's oil and gas landscape.
Market Scope |
|
Report Coverage |
Details |
Page number |
140 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.46% |
Market Growth 2024-2028 |
USD 35.58 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
3.02 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
BP Plc, Chevron Corp., Citla Energy, Exxon Mobil Corp., Grupo Petroil, Marathon Petroleum Corp., Petroleos Mexicanos, Saipem S.p.A., Sempra Energy, Shell plc, Techint, TotalEnergies SE, and Vista Energy S.A.B. de C.V. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Deployment
8 Market Segmentation by Application
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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