SnapshotsAug 31, 2020 | 19:41 GMTPemex’s Losses Deepen Mexico’s Financial Woes
Mexican President Andres Manuel Lopez Obrador's failure to strengthen Pemex's finances and shore up domestic oil production will exacerbate Mexico's public finance woes from COVID-19. On Aug. 24, Mexico's state-owned energy giant Pemex reported its lowest level of monthly crude oil production since 1979, with the company's July output totaling only 1.6 million barrels per day (bpd) -- marking a 0.6 percent decline from June and a 4.5 percent decline from July 2019.
Pemex was already struggling before the current COVID-19 crisis, seeing record losses during 2019 and the first half of 2020. Lopez Obrador's attempts to strengthen Pemex's bottom line and increase domestic oil production, however, will continue to fail without new private investment to help increase long-term production, as well as a business plan that forces Pemex to focus on the most profitable areas.READ MORE