Mexico’s energy industry faces a structural hurdle in its quest to produce over 9,000 million cubic feet of gas per day—a goal that requires drilling 32,000 wells over the next decade. The current model employed by Petróleos Mexicanos (Pemex) lacks the operational and financial capacity to meet the demands of such an expansion.
To reach this target, the country requires an annual investment of between $36 billion and $45 billion. Currently, the state-owned oil company’s exploration and production budget does not exceed $10 billion, meaning it would need a 250% increase in resources to bridge the gap.
Equipment Shortages and Budgetary Constraints
Existing infrastructure is insufficient for the volume of work required. Pemex currently operates fewer than 25 drilling rigs in the 1,200 to 1,500 HP range, whereas the goal demands between 100 and 120 such units. Globally, the availability of equipment for unconventional projects is critical, with only 30 to 40 units available in the short term.
The state company’s drilling capacity is similarly constrained. While the plan calls for a massive rollout, Pemex is currently drilling fewer than 200 wells per year.
The financial outlook for 2027 offers no signs of expansion. The preliminary budget criteria approved by the Chamber of Deputies do not include significant increases for the oil company, effectively restricting the development of hydraulic fracturing techniques.
Given this scenario, experts suggest opening the market to the private sector. They argue that current joint contracts have not been attractive enough to draw capital from U.S. firms.
Although technology has evolved to mitigate environmental risks, its implementation in Mexico lacks the necessary guarantees. Modern advancements now allow for a 50% to 80% reduction in water usage, alongside the use of biodegradable chemicals and steel-and-cement isolation systems designed to protect aquifers.
