The Report Covers Oil & Gas Companies in Mexico and the Market is Segmented by Upstream, Midstream, and Downstream.

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Mexico Oil And Gas Market Size 2025-2029

The Mexico oil and gas market size is forecast to increase by USD 38.9 billion at a CAGR of 3.4% between 2024 and 2029.

The Mexican oil and gas market exhibits significant growth potential due to several key factors. Abundant oil and gas resources, particularly in the Gulf of Mexico, provide a solid foundation for market expansion. Advancements in drilling technology, such as horizontal drilling and hydraulic fracturing, enable efficient extraction of these resources, boosting production levels. Additionally, the global shift towards cleaner energy sources is driving the increasing adoption of natural gas as a bridge fuel, creating new opportunities for market participants. In addition, Mexico is investing in renewable energy sources, including solar, wind, geothermal, and hydrogen energy, as part of the energy transition. However, challenges remain, including regulatory complexities, infrastructure limitations, and geopolitical risks, which may hinder market growth. Overall, the Mexican oil and gas market presents a dynamic and complex landscape, offering both opportunities and challenges for stakeholders.

What will be the Size of the Market During the Forecast Period?

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The Mexican oil and gas market is a significant player in the global energy sector, with a focus on both oil and natural gas production. The country's energy demand continues to grow, making it an attractive destination for international investment. Notable discoveries of gas hydrates have expanded the country's natural gas production capacity. The downstream sector, including oil refineries, is a primary contributor to the market, producing motor gasoline, petroleum fuel, and refined petroleum products. The oil refinery throughput in Mexico has increased, driven by rising demand for petroleum fuels. The market's size and direction are influenced by various factors, including sustainable practices, profit margins, and environmental concerns.


Fossil fuels, including oil and natural gas, remain the primary fuel sources, but the energy transition towards renewable energy sources is gaining momentum. Logistical complexities, such as deep-sea locations, land rights, and offshore drilling, pose challenges to production activities. Natural resources, including deep-water drilling techniques, are being leveraged to maximize production volume. Mexico's energy security is a critical consideration, as the country aims to meet its growing energy demands while addressing the complexities of the energy market.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Upstream
  Downstream
  Midstream


Deployment

  Offshore
  Onshore


Application

  Residential
  Commercial
  Industrial


Product Type

  Crude oil
  Refined petroleum products
  Natural gas


Service

  Refining and petrochemical processing
  Pipeline infrastructure and transportation
  Exploration and drilling equipment
  Storage and distribution


Geography

  Mexico

By Type Insights

The upstream segment is estimated to witness significant growth during the forecast period. The Mexican oil and gas market encompasses the exploration, development, and production of crude oil and natural gas, denoted as the upstream segment. This segment involves critical operations including seismic surveys, drilling activities, well construction, and oil and gas transportation. Factors fueling growth in this sector include escalating energy demand, technological advancements, and supportive government policies. Mexico's energy consumption is on an upward trajectory, driven by urbanization and industrialization. Urban growth leads to heightened electricity demand for residential and commercial buildings, while industrialization intensifies energy usage in manufacturing and production processes. Key trends shaping the petroleum industry include energy efficiency, petroleum product innovation, and the exploration of unconventional resources like gas hydrates.

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Market Dynamics

Our Mexico Oil And Gas Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Mexico Oil And Gas Market?

Availability of adequate oil and gas resource potential is the key driver of the market. Mexico holds substantial oil and natural gas reserves, making it a significant player in the global ener

The report covers Gulf Of Mexico Natural as Forecast and it is segmented by location (onshore and offshore), operation (upstream, downstream, and midstream), and geography (GOM Federal Offshore or the United States Part, Mexico Part, and Cuba Part). The market size and demand forecasts for the Gulf of Mexico market in revenue (USD billion) for all the above segments.

In 2024, the oil and gas extraction sector in Mexico accounted for a 1.8 percent share of the country's gross domestic product (GDP), down from an annual contribution of two percent in the previous year. This was the lowest figure recorded during the period in consideration, as the sector's contribution to Mexico's GDP has experienced a mostly declining tendency in recent years. Over the past decade, Mexico's crude oil production has also shown a significant decrease.

Mexico Oil & Gas Market size was valued at USD 191.12 Billion in 2024 and is projected to reach USD 250.01 Billion by 2031, growing at a CAGR of 3.40% during the forecasted period 2024 to 2031.

The Mexico oil and gas market is driven by rising energy demand, ongoing investments in upstream, midstream, and downstream infrastructure, and government initiatives to attract private and foreign investments. The country’s abundant hydrocarbon reserves, including offshore fields in the Gulf of Mexico, fuel exploration and production activities. The liberalization of the energy sector and policy reforms have encouraged competition and technological advancements, boosting efficiency and output. Additionally, the growing demand for natural gas, both for power generation and industrial applications, is driving expansion in pipeline infrastructure and LNG projects. Rising fuel consumption, refinery modernization efforts, and integration of renewable energy sources into the oil and gas value chain further contribute to market growth.

The growing demand for natural gas and large investments in refineries and LNG terminals are fueling the upsurge of the Mexico Oil And Gas Downstream Market. According to the analyst from Verified Market Research, the Mexico Oil And Gas Downstream Market is estimated to reach a valuation of USD 44.2 Billion in 2031, by subjugating around USD 34.09 Billion valued in 2023.

The strategic decision towards cleaner energy sources and government attempts to increase refining capacity are driving the expansion of the Mexico Oil And Gas Downstream Market as the country looks to strengthen energy security and lessen reliance on imported fuels. It enables the market to grow at a CAGR of 3.3% from 2024 to 2031.

Mexico Oil And Gas Downstream Market: Definition/ Overview

The Oil and Gas downstream sector refers to the oil and gas industry’s last phase, which includes crude oil refining and natural gas processing into marketable products.

The report covers Mexico Oil and Gas Upstream Companies and the market is segmented by Location (Onshore and Offshore).

The size of the Mexico Oil and Gas Upstream Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 1.00% during the forecast period. The transformation that is taking place in the upstream market of Mexican oil and gas is significant, due to reforms initiated by the government and increasing investment in the exploration and production activities. Since there are sizeable reserves in both conventional and unconventional resources, investment by foreign companies into the oil and gas sector is becoming a remarkable opportunity for this country. Several factors are driving the expansion of this market, including the energy reforms made by the Mexican government to open up the industry to private and foreign firms to break the state-owned Pemex monopoly. These reforms encouraged the country to opt for international partnerships and joint ventures with new technology and expertise for the exploration and production of reserve sources. New oil fields and the possible shale gas reserves in the country are attracting much attention worldwide, with major global oil companies looking for their share of participation. Governments are also endeavoring to promote competitive bidding processes for the exploration blocks to avail opportunities to local as well as external market players. Key challenges that the industry will face include regulatory complexity, fluctuating oil prices in the global market, and enormous investment requirements to refurbish the infrastructure and technology. The perspective about the Mexico oil and gas upstream market is optimistic and continues to invest in and develops the country's upstream activities to expand production capacity and ensure adequate supply and security for this country. Key drivers for this market are: 4., Increasing Gas Production and Infrastructure4.; Increasing Exploration and Production Activities. Potential restraints include: 4., Increasing Adoption of Clean Power Sources. Notable trends are: Offshore Segment to Dominate the Market.

Gulf of Mexico Oil And Gas Upstream Market size was valued at USD 22.67 Billion in 2024 and is projected to reach USD 27.82 Billion by 2032, growing at a CAGR of 2.59% during the forecast period from 2026-2032.

Gulf of Mexico Oil And Gas Upstream Market: Definition/ Overview

Upstream oil and gas refers to the industry’s early stages, which include activities such as crude oil exploration and production. This phase consists of finding possible reserves, drilling exploratory wells, and extracting hydrocarbons from subterranean reservoirs. Upstream activities are used in geological surveys to estimate resource potential, drilling operations to access these resources, and extraction procedures to turn raw materials into useful energy sources.

Von 2023 bis 2030 wird die mexikanische Öl- und Gasindustrie voraussichtlich von einer Bewertung von 185,49 Mrd. USD bei einer CAGR (zusammengesetzte jährliche Wachstumsrate) von 4,4%erhöht. Marktgröße, Wachstum, Marktanteil

National oil corporation Petróleos Mexicanos – commonly known as Pemex – is by far the leading company in the Mexican oil and gas sector based on revenue. In 2023, Pemex generated more than 1.7 trillion Mexican pesos in net sales. The fuels division of Mexican multinational FEMSA ranked second that year, with some 58 billion pesos worth of revenue. While in 2021 a total of eight companies in the oil and gas sector made it to the top 500 list of Mexican companies based on revenue, only three were featured in 2023.

The market is segmented by Depth (Shallow Water, and Deep-water and Ultra Deep-water) and Geography (United States, Mexico, and Others)

The size of the Mexico Oil and Gas Downstream Market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 2.00% during the forecast period. The Mexico oil and gas downstream market is witnessing tremendous change, which has resulted from reforms initiated by the government to liberalize the sector and promote more healthy competition. This part of the oil and gas industry includes refining, distribution, and retailing of petroleum products, which are critical for supplying the total energy needs of the country. The efforts of the government toward modernizing the refining sector have traditionally been a strong catalyst in the downstream industry. The main challenge that the sector has faced is the inability to meet domestic fuel demand. Such enormous investments in upgrading existing refineries as well as erecting new ones aim at reducing the intense dependence on imported fuels. This would boost the energy security. This has generated competition through liberalization, which in turn resulted in innovation in distribution and retail due to the opening of the market to private players. Other companies now offer alternative fuels: compressed natural gas and liquid natural gas. Such fuels reflect a global trend: sustainability and a lower emission rate. These include, however, regulatory uncertainties and infrastructure and global fluctuations in the cost of oil. Going forward, nothing much more than a bright future seems to emanate for the Mexico oil and gas downstream market, as the current government's reforms and investments are strongly expected to lead to efficiency, better service delivery, and ultimately bring success for the country on its overall energy agenda. Recent developments include: In December 2022, the Ecopetrol Group announced its investment plan for the energy transition. Out of the total share of investment, 7% will be invested in downstream activities. The investments will emphasize maintaining the reliability, availability, and sustainability of the Barrancabermeja and Cartagena refineries' operations to consolidate energy security, energy transition, and decarbonization of Mexico., In December 2022, Mexican NOC Pemex is set to begin production at the country's eighth refinery in mid-2023. Once completed, the Olmeca refinery will have an installed capacity of 340,000 barrels per day (BPD) and produce 170,000 barrels of petrol and 120,000 barrels of ultra-low-sulfur diesel.. Key drivers for this market are: 4., Increasing Gas Production and Infrastructure4.; Increasing Exploration and Production Activities. Potential restraints include: 4., Increasing Adoption of Clean Power Sources. Notable trends are: Refineries Segment to Witness Growth.

Gulf of Mexico Oil and Gas Mid-Stream Market is expected to grow at a high CAGR during the forecast period 2024-2031

The Report Covers Mexico Oil and Gas Downstream Market Companies and Consumption Trends and is segmented by Type (Refineries and Petrochemicals Plants). The report offers the market size and forecasts for Mexico and gas downstream market in refining capacity (million barrels per day) for all the above segments.

The Gulf of Mexico Midstream Oil and Gas Market Report is segmented by Type (Transportation and LNG Terminals)

A line file representing locations of the pipeline infrastructure in the Gulf of Mexico associated with the oil and gas industry is presented. These layers were modified from GIS data acquired from the U. S. Department of the Interior, Bureau of Ocean Energy Management (BOEM) website. We note that pipelines are being added or modified continuously, thus regular updates of this database are required to know the true distribution of pipelines. The current layers are non-projected with coordinates in decimal degrees.

Mexico Midstream Oil and Gas Industry Outlook to 2020: Market Forecasts for Liquefied Natural Gas (LNG), Oil Storage, Pipelines and Gas Processing is a comprehensive report on midstream oil and gas industry in Mexico. The report provides oil production, consumption, exports and imports from 2000 to 2020. The report also provides natural gas production, consumption and imports from 2000 to 2020. It also provides historic oil and gas reserves for the period 2000 to 2014. Further, the report provides details such as name, type, operational status and operator for all active and planned (new build) LNG terminals, oil storage terminals, major trunk pipelines and gas processing plants in Mexico till 2020. Further, the report also offers recent developments, financial deals as well as latest contracts awarded in the country’s midstream sector. Read More

In March 2022, crude oil production in Mexico averaged around 1.63 million barrels per day. Approximately 1.53 million daily barrels were produced by Mexico's state-owned oil corporation Pemex. Meanwhile, production from private companies added up to some 97.1 thousand barrels per day that month. The oil output of private companies in Mexico has increased continuosly in recent years.

The size of the Gulf of Mexico Oil & Gas Decommissioning market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of % during the forecast period.Oil and gas decommissioning in the Gulf of Mexico refers to the removal of redundant oil and gas infrastructures in the Gulf of Mexico in a safe way. Decommissioning is one step that is necessary for all offshore oil and gas fields during their sunset years, in order for the marine environment to regain its original state, coupled with the fulfillment of obligations to regulatory requirements. This is a multistage process including the plugging and abandonment of wells, dismantling of platforms and pipelines, and the responsible disposal of waste materials. The drivers for the decommissioning market of oil and gas in the Gulf of Mexico are the aging infrastructure, increased regulatory standards, and the environmental issue.With the growing number of offshore facilities reaching the end of their operational life, there is also a growing demand for decommissioning services. This in turn provides great opportunities for companies that specialize in decommissioning activities, such as engineering firms, construction companies, and specialized service providers. Decommissioning is however associated with major costs such as dismantling large structures, the disposal of waste materials, and site restoration. Toward combating these costs, companies come across new technologies and methods to decommission easily along with a reduced impact on the environment. Notable trends are: Deepwater to Register Highest Growth Rate.