August 2012
North American Outlook
Mexico works on rebuilding its crude oil output
Concerned about lagging crude oil production, Mexico is increasing its capital expenditures over the next several years to stabilize output and then grow it. Last year, Pemex spent $19.1 billion on capital projects, of which more than 80% was spent on upstream work. This year, the firm will raise capital spending 21.5% to $23.2 billion, of which 85%, or $19.7 billion, will be dedicated to E&P projects.
