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Country insight – Mexico

Mexico’s oil supply declined sharply in 2018 bringing the country to the brink of being a net oil importer as gas’s share in the energy mix grew further

Fast facts

1? ??Oil output fell to an almost 30 year low of 2.1 mb/d in 2018 and gas output fell for the fifth year in a row

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2? ?Gas's share of Mexico's energy consumption has increased from 30% a decade ago to over 40% in 2018 and now accounts for 60% of electricity generation

-7% decrease in oil production
Decrease in oil production
+11.6% growth in non-hydro renewables generation
Growth in non-hydro renewables generation
+10.5% growth in gas consumption
Growth in gas consumption
-3.0% decline in carbon dioxide emissions
Decline in carbon dioxide emissions

At a glance

  • Energy consumption fell by 1.3% last year, the sharpest decline in over two decades after growing by 0.6% in the last five years.
  • Oil remained the dominant source of energy at around 44%, but consumption has declined sharply by over 3% in the last two years.
  • The oil output decline of 7% (150 kb/d) was the largest natural decline of any country in 2018 and reduced net oil exports to just 260 kb/d, the slimmest margin since 1976.
  • Natural gas consumption increased the most (up 3.6%), replacing coal consumption, though gas supply has declined by almost 30% over the last 5 years.
  • Gas’s share of Mexico’s energy consumption has increased from 30% in 2008 to 41% in 2018, in line with oil’s share and now provides 60% of electricity generation.
  • Mexico offset this decline by importing 60% of its consumption. LNG imports totalled 7 Bcm and pipeline imports were 46 Bcm.
  • Mexico was one of only a handful of countries to reduce coal consumption last year by 3.3 Mtoe, the fourth largest decline.?
  • Generation from renewables remained relatively low compared to other fuels at 6%, in line with the prior two years.
  • Mexico’s energy intensity (the amount of energy required per unit of GDP) declined 3.3% in 2018, in excess of the 2% average decline over the last five years.
  • Energy related CO2 emissions fell 3.0% in 2018 after remaining roughly flat for the last five years.
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