Mexico Oil Barrel Costs near Double

Mexico (Prensa Latina) – Petroleos Mexicanos (PEMEX) is currently facing an oil-extraction cost increase, from $2.20 to $4.20, per oil barrel, which means a 91-percent increase, according to statistics of the company.

This increase adds to a decrease in production, volatility of prices and an important drop in success of drilling prospect wells, going from 57 to 42 percent, between 2000 and 2006.


According to the information by PEMEX directive board, the increase in the extraction costs and general technical expenses are due to extension of the programs for deposit maintenance.

Other causes of the increase are a rise in the price of natural gas used in pneumatic pumping, more investments in prospecting, and higher costs of labor.

Prensa Latina