Europe & Mexico

ENERXICO Project information


EU countries are the second largest foreign investors in Mexico, after the USA. Around 31% of Mexico's foreign direct investment (FDI) inflow during 2016 originated from the EU. The EU is Mexico’s third largest trade partner, while Mexico is the 15th largest trade partner of the EU. The EU is also Mexico's second biggest export market after the USA, and Mexico's third largest source of imports after the USA and China. In 2014, EU exports to Mexico amounted to US$44.6 billion, while EU imports from Mexico amounted to US$ 20.4 billion. Mexico ranks 9th in the world in crude oil reserves, 4th in natural gas reserves in America and it is also highly rich in renewable energy sources (solar, wind, biomass, hydropower and geothermal). However, the potential of this type of energy has not been fully exploited. Furthermore, according to the General Law for Climate Change, the country has set the goal of generating 35% of its energy needs from renewable sources by 2024.


Wind energy

In 2015, Mexico added 714 MW of new wind power to the country's electricity grid, bringing total capacity to 3.07 GW, representing about 4.7% of total generation capacity. The energy market reform that is currently being implemented in the country has led to rapid growth expectations. The Mexican wind industry is determined to get 9.5 GW installed by the end of 2018, and up to 15 GW by the end of 2022 [13]. The key players in the Mexican wind market include Iberdrola, GNF, and Renovalia. To date, wind power has generated USD 6 billion (EUR 5.37 billion) of new investment, while an investment of USD 13 billion (EUR 11.64 bn) is expected for the period of 2016-2018. The EU is a world leader in wind energy technologies. As of 2015, there was 142 GW of installed wind energy capacity in the EU: approximately 131 GW onshore and 11 GW offshore . Europe installed 12.5 GW of gross additional wind capacity in 2016. With a total installed capacity of 153.7 GW, nowadays wind energy is the second largest form of power generation capacity in Europe. The wind power capacity installed in the EU by the end of 2014 would, in a normal wind year, produce 284 TW·h, enough to cover 10.2% of the EU's electricity consumption.


The average energy consumption is increased around 1.1% worldwide in the transportation sector every year. In particular, this sector accounts for the largest share (63%) of the total growth in world consumption of petroleum and other liquid fuels from 2010 to 2040. Society is demanding alternative fuels for transportation as this sector is responsible of producing large greenhouse gas (GHG) emissions and contributes to the growth of the global oil demand. The two main internal combustion engine types (compression ignition and spark ignition engines) are known to be large contributors to reduce the air quality in urban environments by the emissions of NOx, soot and other pollutants. Currently, ethanol blended into gasoline is the most utilized alternative for spark ignition engines in order to incorporate non-fossil components and for energetic diversification. Also, waste oil biodiesel can play an important role to reduce the global energy demand due to its availability, environmental friendliness and renewable properties.

Oil and gas

Hydrocarbon needs are also expected to rise in the next decades. As an example, approximately $900 million per year in upstream oil and gas developments are needed by 2030 to meet the demand. Crude oil production in Mexico decreased to 2051 BBL/D/1K in February from 2208 BBL/D/1K
in January of 2017. Crude oil production in Mexico averaged 2905,30 BBL/D/1K from 1994 until 2017, reaching an all time record of 3547 BBL/D/1K in December of 2003 and has its lowest value at 1977 BBL/D/1K in October of 1995. However, from 1938 to 2013, Mexico's oil industry was monopolized by the state-owned oil and gas company Petroleos Mexicanos (Pemex). Industry reforms were initiated in 2013 in the hope of attracting greater foreign investment to reverse production declines in the country. As of February 2017, Mexico stands as the third largest crude oil producer in Latin America, after Venezuela and Brazil, with 3547 BBL/D/1K.

The last bid round offshore Mexico (Bid 3.1, 27th March 2018) saw Pemex as leader both in award count and in acreage awarded (4 awards, 2935 km2) but also Repsol was third in acreage with more than 1600 km2 in 2 awards, both in the Burgos basin. Both Pemex and Repsol are participating
in this project (Pemex as observer and Repsol as partner) and the results of the last bid just confirms their strong commitment and support for operating in the area of the Gulf of Mexico. Overall, Shell, ENI and Repsol (all of them European O&G companies) are the largest overall contributors, after PEMEX, in offshore blocks acquired for exploration in Mexico, thus confirming the critical importance of Mexico for European investment related to increasing oil and gas reserves.