Energy
The Mexican Energy Sector and Industry
Energy production in Mexico is managed by State-owned companies: the Federal Commission of Electricity (Comisión Federal de Electricidad, CFE) and Pemex (Petróleos Mexicanos). The CFE is in charge of the operation of electricity-generating plants and its distribution all across the territory, with the exception of the states of Morelos, México, Hidalgo and the Federal District, whose distribution of electricity is in charge of the State-owned Luz y Fuerza del Centro. Most of the electricity is generated in thermoelectrical plants, even though CFE operates several hydroelectrical plants, as well as wind power, geothermal and nuclear generators.
Pemex is in charge of the exploration, extraction, transportation and marketing of crude oil and natural gas, as well as the refining and distribution of petroleum products and petrochemicals. Pemex is the largest company in Latin America, and the ninth-largest oil company in the world. In terms of total output, in 2007 it was the sixth-larger producer in the world-in 2003 it was the third-largest- producing 3.1 million of barrels a day, way above the production of Kuwait or Venezuela.
According to the new National Infrastructure Program, strategies and goals for the energy sector are as follows:
ELECTRICITY
Strategies
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To develop infrastructure to generate, transmit and distribute electricity to satisfy the demand at the lowest possible cost.
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To diversify electricity generation sources, emphasizing the use of renewable sources.
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To increase electricity service coverage, primarily in rural areas.
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To improve the quality of electricity public service.
Goals for 2012
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Maintain the reliability of electrical energy supply, planning a reserve margin of 23 to 25 percent.
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Increase effective generation capacity to 9 thousand megawatts.1/
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Accomplish that renewable sources represent 25 percent of the effective generation capacity
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Put into operation more than 14 thousand kilometers-circuit lines with different tension levels.
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Increase electricity service coverage up to 97.5 percent of the population.
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Place Mexico in the top 40 percent of countries with the best evaluations according to the Quality of Electricity Supply Index of the World Economic Forum.
OIL AND GAS PRODUCTION
Strategies
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Reduce the imbalance between extraction of oil & gas and incorporation of reserves.
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Promote exploration and production of crude oil & gas. Establish the groundwork to begin exploration and exploitation in deep waters, once the necessary resources are in place.
Goals for 2012
- Achieve an oil production of at least 2.5 million barrels per day.
- Maintain production of natural gas at around 5 billion cubic feet per day.
- Raise the rate of restitution of hydrocarbon reserves to 50 percent.
REFINERY, GAS AND PETROCHEMICALS
Strategies
- Expand and modernize refinery capacity.
- Increase capacity for storage, supply and transportation of oil products.
- Strengthen maintenance tasks, as well as measures to mitigate environmental impact.
- Increase capacity for processing and transporting natural gas.
- Promote complementary investment in petrochemicals, based on the legal framework and profitability analysis.
Goals for 2012
- Carry out necessary actions to increase capacity to process crude oil to at least 1.4 million barrels per day in 2012.
- Maintain gasoline imports at no more of 40 percent of total sales.
- Reduce the content of sulphur in fuel to comply with environmental standards.
- Build at least 800 kilometers of pipelines for natural gas transport, using private resources.