Pemex Faces Declining Oil Production and Revenue Challenges

In November 2025, Mexico's state oil company, Pemex, reported a significant decline in both crude oil production and export revenues, raising concerns about the company's future viability. Pemex's production averaged 1.624 million barrels per day (bpd), a 1.9% decrease from 1.656 million bpd in November 2024. When including private partners like Harbour Energy, the average production was slightly higher at 1.641 million bpd, but still down from 1.673 million bpd a year earlier. This production level falls short of the federal government's target of 1.8 million bpd, with November figures lagging by 176,000 barrels.

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The financial outlook is equally troubling, with Pemex's oil export revenues plummeting to US $925.4 million in November, marking a 50% drop compared to the same month in 2024. This decline represents the third instance in 2025 where revenues failed to exceed US $1 billion, following similar shortfalls in June and August. Cumulatively, Pemex's external sales for the first 11 months of the year reached US $12.337 billion, a figure reminiscent of early 2000s earnings.

Pemex reports disappointing November as export revenues plunge 50%

Earlier in December 2025, Pemex conducted a joint-venture contract auction that fell short of expectations, awarding only five out of the eleven contracts it aimed to finalize. These mixed contracts, which involve local companies as partners, are the first of their kind in Mexico. However, analysts suggest that the production gains from these ventures are unlikely to reverse the ongoing decline in Mexico's crude oil output.

Pemex reports disappointing November as export revenues plunge 50%

Critics argue that Pemex's struggles are indicative of deeper systemic issues within the company and the Mexican oil sector. The decline in production has been attributed to the natural depletion of mature oil fields and insufficient investment in upstream operations, a trend noted by forecasting firm Industrial Info Resources. The inability to attract major international companies during the recent auction further highlights the challenges Pemex faces in revitalizing its operations.

Pemex reports disappointing November as export revenues plunge 50%

In response to the declining production and revenue, Pemex has expressed a commitment to stabilize oil production at 1.8 million bpd over the next decade. The Finance Ministry's announcement of a new financing plan in August was intended to bolster investments in the sector. However, the effectiveness of these measures remains to be seen, especially in light of the recent auction results and ongoing production declines.

Pemex reports disappointing November as export revenues plunge 50%

Looking ahead, Pemex will need to address its production challenges and revenue shortfalls to meet federal targets and restore investor confidence. The upcoming months will be critical as the company seeks to implement its financing strategies and attract new partnerships to reverse the trend of declining oil output.

Pemex reports disappointing November as export revenues plunge 50%