Mexico to recover oil production capacity in 5 or 10 years, according to Peña Nieto

After demanding a faster progress for the actions to brace the economy of oil-producing states such as Tabasco and Campeche , Mexican President Enrique Peña Nieto said it would take the country between 5 and 10 years after the implementation of the energetic reform to recover the oil production capacity Mexico had in the past.

Peña Nieto cautioned that Mexico's oil industry has declined due to the depletion of several oil fields, mainly that of the Cantarell Complex – one of the most important oil fields in Mexico.

The President talked about the importance of boosting an energy reform which he claimed will establish Mexico as the sole owner and of all Mexican oil fields but will also allow the opportunity to the private sector of “joining” Mexico's state-owned oil company, PEMEX, in the venture of hydrocarbon exploration and extraction.

“What we had before was an ancient model which has already been left behind, an exhausted model, in the experience of other countries,” he added.

During his opening speech of a new hydrologic project in Tabasco, President Peña Nieto claimed the benefits of the new partnerships PEMEX will now enter into with the private sector will allow the country to recover its oil production capacity “in the next 5 or 10 years.”

“Today we're producing 2 million oil barrels per day, an amount we used to obtain from a single oil field in other times,” he said, adding that today, Cantarell is only producing 200,000 barrels.

For his part, the Governor of Tabasco , Arturo Núñez, asked the President to also consider a market diversification.

“It's true the oil industry will recover if the energetic reforms are implemented but we don't want to depend so much on oil when that time comes. We want diversification, and the opportunity of a special economic zone is an encouragement,” he said.

President Peña Nieto agreed that the special economic zone for Tabasco and Campeche through special tax cuts, tax exemption for 10 years, and the exception of the income tax (ISR) would help the region, in addition to the investments the energetic reform will attract, which will bring job opportunities and a new "economic boost."

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