This sub-sector market research report presents Pemex oil and gas projects including Pemex’s next two year budget. It will also cover various alternatives that U.S. manufactures and service providers have to sell to Pemex’s Exploration and Production subsidiary.
Mexico’s total market in 2010 for oil and gas drilling equipment and services was US$2.1 billion and is expected to increase to US$2.3 billion by the end of 2011. Market growth is expected to continue into 2013. U.S. companies claimed 51% of the total import market in 2010 and will reach 52% of the total import market at the end of 2011.
Pemex (Petroleos Mexicanos) as government owned petroleum company, is governed by Mexico’s Public Works Law. To sell equipment and services to Pemex, under a national, international, or by invitation only tender, companies are required to be registered as suppliers.
At the end of 2010, Pemex was considered the number 4th largest crude oil and the 11th largest natural gas producer in the world. Pemex’s Exploration and Production subsidiary is the most important area within Pemex that issues tenders on oil and gas drilling projects in which small, mid-sized, and large Pemex contractors participate and demand drilling equipment and services.
Pemex’s 2010 infrastructure included: 344 production fields; 6,382 exploration wells; 225 marine platforms; 12 gas processing centers; 9,500 km of gas pipelines; 3,645 km of pipelines for oil refined products; 6 refineries; 8 petrochemical centers with 38 petrochemical plants; 19 liquefied gas distribution terminals; 77 storage refined oil plants; 11 oil tankers; 1,347 gasoline distribution vehicles; and 525 railroad cars for refined oil products, etc.
Pemex’s major crude oil production and well drilling takes place in the Chicontepec, Cantarell, and Ku-Maloob Zaap regions (in 2010 a total of 1,490 new wells were drilled). In regards to natural gas, the five major regions are: Cantarell; Ku-Maloob-Zaap; Crudo Ligero Marino; Burgos, and Veracruz. All natural gas production and drilling is conducted on shore.
The market for oil and gas drilling equipment and services is expected to grow at an average of 6.5% from 2011 to 2013 (Table 2) due to priorities set by Pemex to continue drilling projects to find new reserves of crude oil (including in mature fields) and natural gas to meet the domestic and export market demand.
The figures in Table 2 also show that the total market will increase from US$2.1 billion in 2010 to US$2.3 billion by the end of 2011. According to Pemex, 80% of the demand for drilling equipment will be imported by large contractors for turn key projects announced in national and international tenders and by invitation only tenders. 20% of the demand will be supplied by representatives and distributor of drilling equipment with offices in Mexico. Total imports are expected to increase by 7% from 2010 to 2013.
The following is a short list of the oil and gas drilling equipment and products that will have the greatest demand during the next five years. Coring drilling rigs, single rotary head geothermal drill rigs, blasting drilling rig, reverse circulation drilling supplies, drill pipe, hammers and bits, crossover subs, rock bit adaptor, directional drilling bits, gas pressure regulators, mounting brackets, multi valves, relief valves, external relief valves, excess flow valves, bypass valves, compressors, back pressure valves, oil-free gas compressors, hand pumps, vapor meters, , level indicators, flexible connectors, copper tubing, tube cutters, flaring tubes, mechanical couplings, coating strippers, bearings, brass precision needle valves, brass fittings, leak detectors, gas detectors, Pipe for Gas drilling; iron or steel; casting and tubing gas drilling; drilling, threading or tapping tools; tools for drilling other than rock drill; tools for boring or broaching; tools for turning of base metals; interchangeable tools for hand or machines; pumps fitted with measuring device; hand pumps fitted with measuring devices; concrete pumps; rotary positive displacement pumps; gas pumps; boring or sinking machinery; pressure-reducing valves; check valves; mobile drilling derricks; surveying instruments; test benches, etc.
Pemex’s Exploration and Production will be contracting over US$2.5 billion between 2011 to 2013 in drilling of crude oil and natural gas projects from international and domestic companies, therefore, the market demand from manufacturers, representatives, and distributors of drilling equipment will increase in 6.5%. Total imports of equipment from the U.S. to Mexico will inclrese 7.0% from 2011 to 2013.