The Mexican energy ministry said on October 31st that it applauded OPEC’s October 30th decision to boost output by 500,000 b/d, but that Mexico, the world’s fifth largest oil producer, would not join the group in raising production.
“Mexico is producing at maximum capacity, so at this time, an increase in export volumes will not be possible,” the ministry said in a press release. Mexican Oil Minister Luis Tellez had said earlier in October that the country would increase its production by at least 200,000 b/d in the last quarter of 2000 or the first quarter of 2001.
The energy ministry, in its October 31st statement, indicated that: “The latest estimations allow us to predict that Mexico will have an additional capacity of 100,000 b/d in December and 200,000 b/d in April 2001.”
The additional oil production capacity will be available as the result of new investments in the country’s energy infrastructure and would be Mexico’s contribution to stabilizing international oil prices and maintaining world economic growth, according to the press release.
Mexico is a non-OPEC producing country, but has worked closely with the cartel in the past to coordinate supply increases and decreases.