Crude oil production in Mexico set to fall as drilling activity scales back

Mexico’s oil production has declined by 160 kb/d (8%) between October 2024 and April 2025, as the number of oil drilling rigs has tumbled by 60%. Mexico’s state-owned oil company, PEMEX, suspended service provider contracts to focus on repaying more than $24 billion in debt to suppliers. There are now just 20 rigs operating in the country, the fewest since 2018. Mexico was the second-largest source of U.S. crude imports in 2024, but in January, flows to the U.S. fell to their lowest level since July 1981.